Cultural relevance in marketing and entertainment: A lucrative business opportunity with M&A benefits
Cultural relevance is becoming a driving force in the world of marketing and entertainment. This shift is not just a theory anymore – it’s a reality. Major players like WPP and Universal Music Group are teaming up for ad-fueled entertainment, while talent agencies are entering the ad industry. The rise of new companies like Common Interest is proving that brand advertising is evolving into a marketing-entertainment fusion.
James Kirkham, co-founder of brand consultancy Iconic, highlights this change by stating that traditional advertising is taking a back seat to cultural moments. Brands are now becoming central figures in culture stories rather than just running campaigns.
In the creator economy, marketing and entertainment are colliding. Creators and influencers are now crucial to investment strategies, shaping how brands strive for cultural relevance. Major acquisitions like Publicis Groupe’s purchase of Influential and Stagwell’s acquisition of Leaders are examples of the industry’s focus on this trend.
One recent noteworthy deal is Later’s acquisition of social commerce app Mavely for $250 million. This move is driven by the growing interest in influencer marketing as a performance strategy. Mavely’s model, which pays creators commissions based on the sales they generate, is appealing to marketers looking for ROI with a side of cultural relevance.
Scott Sutton, CEO of Later, emphasized the value of data in driving performance and ROI for brands. By combining the data from their social platforms with Mavely’s transaction details, they can predict performance accurately and deliver tangible results for their clients.
According to Matthew Lacey, partner at M&A advisory firm Waypoint Partners, brands are increasingly seeking cultural relevance to remain authentic. The convergence of technology and culture is becoming more prevalent, signaling a shift towards authenticity in brand messaging.
Companies like Common Interest are at the forefront of this marketing-entertainment crossover. Their mission is to provide CMOs with the necessary tools to create strategies rooted in cultural relevance. The post-pandemic landscape has highlighted the importance of strong brands with better price elasticity.
Overall, the industry is recognizing the significance of cultural relevance in brand marketing. Major acquisitions, investments, and the launch of entertainment divisions by key players underscore the growing importance of staying culturally connected in today’s competitive market.
