CANNES, FR - It’s an unusual sight and sound, hearing a packed auditorium of creatives applaud Elon Musk as he takes to the stage in the Lumière Theatre. Not too long ago, Musk told advertisers to go “**** themselves,” and yet here we are. It’s a strange old world. And in the moment of collective evanescence it’s a challenge to look beyond the euphoria, beyond the fact Musk is sitting before you, and really tune into whether this is a useful interview to sit through.
Mark Read, CEO of WPP, had the challenging task of interviewing Musk. While the conversation was certainly entertaining, I left feeling it lacked the depth and actionable insights marketers really need right now. Did Musk provide anything of substance, or was it all just a collection of musings?
Elon Musk’s interview did, of course, offer a unique glimpse into the mind of one of the most influential figures in technology and business. Musk's interview spanned topics from free speech and brand safety to the transformative potential of AI. However, the conversation left much to be desired in terms of depth and actionable insights for CMOs.
X and Free Speech
Musk's defence of free speech on X (formerly known as Twitter) was a central theme. And this is sometimes the problem with brand leaders on stage at Cannes Lions. A keynote can very easily journey into a 20-minute speech promoting their brand with no real insights.
He emphasised, “If we have to make a choice between censorship and money…we're going to support free speech rather than agree to be censored for money.” This declaration underscores Musk's commitment to maintaining a platform that allows diverse opinions, even at the risk of alienating advertisers. For CMOs, this stance presents both a challenge and an opportunity. On one hand, the commitment to free speech can lead to unpredictable content environments. On the other hand, it underscores a platform’s dedication to authenticity and open dialogue.
Read set to clarify Musk‘s words against advertisers, to which the Tesla boss said, “Advertisers have a right to appear next to content that they find compatible with their brands.” Musk shares, “What is not cool is insisting that there can be no content that they disagree with on the platform.” He added, “I do shoot myself in the foot from time to time, but at least you know it is genuine, not from the P.R. department.”
According to research published by NBC News, “in February, X had 27 million daily active users of its mobile app in the U.S., down 18% from a year earlier, according to Sensor Tower, a market intelligence firm based in San Francisco. The U.S. user base has been flat or down every month since November 2022, the first full month of Musk’s owning the app, and in total it’s down 23% since then,” Sensor Tower said.
The real question is how X plans to balance free speech with the need for brand safety. Musk’s words need to be backed by practical measures that ensure a safe advertising environment without compromising on free speech principles. Platforms must offer robust content moderation tools to help advertisers manage their ad placements effectively.
Though, a study by the marketing network Stagwell, reported that ads placed alongside content about politics, inflation and crime perform equal to those shown next to business and entertainment news. Still, how much you care about whether your brand appears next to certain news items depends on the brand you represent.
The interview missed a crucial opportunity at this point to delve into the specifics of how X intends to navigate this balance. Understanding the implementation strategies for content moderation would have provided CMOs with clearer guidance on how to align their advertising strategies with Musk's vision. This could have provided more clarity on practical measures being taken.
And although X is by far the smallest western social media platform, Musk shared how X can harness AI to help with marketing effectiveness, the WSJ covered this well.
“If you want to reach the most influential people in the world,” X is where to go, he said.
Yet, beyond Cannes Lions, Linda Yaccarino CEO of X recently informed X employees the company was winning back advertisers, but big ones were still staying away.
Musk: Advertising as Content
This isn’t rocket science but Musk shared his perspective on effective advertising, stating, “If you're shown an ad for a product that you want when you want it, that is content.” He believes ads that are so well-targeted that they become indistinguishable from desired content will enhance user engagement and not be annoying.
It’s a good reminder to innovate. And advertising should not merely be about visibility but about relevance and timing. Ads that resonate with the user's immediate needs or interests ‘transform from intrusive interruptions to valuable content.’
What would have been great to see at this point are real-life case studies. What brands does Musk feel are doing this well, not just on X, and what is the ROI?
Regardless, investing in high-quality, personalised advertising that adds value to the consumer experience will be more likely to go undetected as an ad, but something useful to the consumer. Leverage data and AI to understand user preferences and deliver ads that are contextually relevant. ASICS’ latest campaign hacking socials is a fantastic example of this.
So, while this insight is valuable, there was a missed opportunity to delve into specific strategies Musk envisions for achieving this seamless integration of ads as content. Examples of campaigns or brands that have successfully implemented this approach would have given marketers examples to emulate.
Musk: AI, the Future and Its Dual Edges
Musk offered a dichotomous view on AI, saying, “There’s a 10-20% probability of something terrible happening…like extinction of the world’s population.” Yet, he also expressed optimism, predicting an era of “abundance where goods and services are available to anyone.”
Mark Read asked about the potential impact of AI on the industry’s jobs, particularly those starting their careers. He inquired whether AI would render certain jobs obsolete and how individuals could navigate this transition period. "There’s a lot of young people in the audience, you know, young CMOs, what advice would you give to people starting out their careers today, apart from you're not going to have to work so?"
Musk responded by emphasising the importance of effectively using AI: "There’ll be obviously, you know, a transition period to, as AI gets better and better. I mean, the companies that will succeed in this transition period will be the ones that most effectively use AI. So if, if you're doing something and making maximum use of AI and you're competing against someone who is not, you will win."
So, the dual nature of AI presents both excitement and caution. AI's potential to revolutionise marketing with hyper-targeted ads, predictive analytics, and automation is vast. However, the ethical implications and risks of AI misuse are equally significant. And it’s the first Cannes Lions we’ve seen where awards entries had to come with an AI disclosure; many AI generated work did win awards.
Really, then, you should continue to embrace AI for its ability to enhance targeting and personalisation but stay up to date on its ethical use, especially if it’s what your brand is known for. Developing a balanced AI strategy that prioritises transparency and user privacy is crucial.
A question surrounding what specific measures companies can take to harness AI's benefits while mitigating its risks could have provided actionable advice.
X, the Future of Journalism and Content Aggregation
At this point in the interview, Musk suggested that the future of news lies in real-time aggregation from X users, claiming, “Experts in a field know more than reporters…people who are at the location are firsthand observers.” He posited that this model could surpass traditional journalism in accuracy and relevance.
This shift towards real-time, user-generated content can be both a boon and a bane. While it allows for timely and diverse perspectives, it also raises concerns about misinformation and brand safety. And being moderated by X, and not the likes of the BBC or Fox News, means the news legitimacy and quality is still subjective.
Still, this is definitely something brands could leverage. Real-time content aggregation for timely insights but I’d be looking to X to implement robust verification mechanisms to safeguard against misinformation.
And this was a prime moment to question the potential downsides of crowd-sourced news, such as misinformation and lack of accountability. Read held back from asking how X plan to address the spread of misinformation and ensure the credibility of sources on the platform.
Optimus’ Effect of Industry
During Tesla’s 2024 stockholder meeting, Elon Musk introduced the Optimus Gen 2 humanoid robot, with an affordable price tag of around $10,000-$20,000. And at Cannes Lions he explained how the advanced robot aims to revolutionise the labour market and potentially enhance Tesla’s market value to a $25 trillion company, according to CNBC.
At Cannes Lions Musk reiterates a future where robots handle a wide range of tasks, from household chores to industrial jobs. He said, “I think there’ll be at least one [robot] for every person and a whole bunch more in industry.”
The advent of humanoid robots like Optimus signifies a new era of consumer interaction and service automation is brewing. The potential for brand integration in daily tasks handled by robots could revolutionise marketing touchpoints. But, what are the timelines for all this? What are the immediate next steps for Optimus, and when can we expect to see these robots in everyday use? I’m entertained by Musk’s vision of the future but I need it grounded in present-day realities for objectivity. Understanding the current development stage and rollout plan would provide CMOs with a clearer picture of when and how to prepare for this technological shift.
Extracting Value
So was I blown away by Elon Musk’s interview at Cannes Lions? Well, it certainly offered glimpses of useful thinking interspersed with moments of ambiguity.
While Musk’s commitment to free speech and innovative advertising models are noteworthy, there remains a need for more concrete strategies and timelines. More targeted questions and deeper dives into these areas could have made the session more valuable.
For CMOs, the basic takeaways are to consider the balance between free speech and brand safety (as always), leverage improved ad targeting technologies, and prepare for the transformative impact of AI on our industry.
If I was a brand marketer I’d be taking to YouTube to rewatch it and rewatch his other more in-depth, more charged interviews. But also, keep a close watch on what Apple Intelligence is doing and where their strides could lead us.
More targeted questions and deeper dives into these areas could have juiced the lemon dry and made the session more valuable. But this is Cannes Lions and so we wouldn’t want to get bogged down with too much detail. It’s about the celebration, feeling good about creativity, isn’t it.
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