The entertainment industry is undergoing a significant shift, with brands taking center stage and challenging the traditional boundaries between advertising and storytelling. This evolution has been a long time coming, and it's fascinating to witness the convergence of these two worlds.
The Birth of Branded Entertainment
It all started with a meeting between Brian Grazer, a megaproducer, and Jeff Immelt, the CEO of General Electric. Immelt wanted to create TV spots, but Grazer, with his fascination for founders, envisioned something bigger. Thus, the idea of an anthology series inspired by Thomas Edison and the lightbulb was born. This marked the beginning of a new era, where brands like GE and Imagine Entertainment collaborated to create entertainment programs with a subtle shine on the brand.
A New Status Quo
Across Hollywood, a new norm has emerged. Advertising is no longer seen as anathema to entertainment. Major companies and brands are embracing the power of storytelling, learning from the studios, and presenting themselves in a more engaging way to potential customers. It's a full-circle moment, reminiscent of the early days of television when the line between ads and entertainment was blurred.
The Transition Period
Brands are in a transition phase, adapting to a rapidly changing media landscape. As George Dewey, co-founder of Maximum Effort, points out, the impact of traditional TV advertising is diminishing. With sports being the only arena where people collectively experience live content, brands are getting creative. They're launching in-house studios, and small and midsize production companies are embracing branded entertainment to stay afloat during a lull in Hollywood.
The Challenge of Authenticity
One of the key challenges for brands is maintaining authenticity. People may tolerate trashy TV shows, but they have little patience for trashy advertising. As David Anderson, an executive at UTA, puts it, consumers generally don't love ads. They want organic conversations and content that feels genuine.
The Rise of Brand Studios
Major brands are ramping up their efforts, hiring Hollywood veterans for their in-house studios. They're aiming to create ambitious stories while promoting their products. For example, Gap brought in a former Paramount executive as its chief entertainment officer, and companies like Procter & Gamble, Starbucks, and Kraft Heinz are launching their studios. These brands understand the importance of creating content that goes beyond traditional advertising.
The Power of Star Power
A-listers like Ben Affleck and Timothée Chalamet are embracing brand partnerships, and they're actively involved in the creative process. Celebrities now see brand advertising as an opportunity to enhance their brand, not dilute it. This shift in perception has opened up new avenues for collaboration and storytelling.
The Need for Relevance
In a cluttered media environment, brands, even charities like Water.org co-founded by Matt Damon, need to think about the entertainment value of their content. UTA's Culture Index highlights the importance of cultural relevance for brands, especially for Gen Z consumers.
The Disintermediation of Attention
The new media world of brand-as-studio is characterized by the disintermediation of attention. Brands are now directly engaging with consumers, cutting out third parties to a certain extent. Ad agencies and talent firms still play a role, but brands have in-house teams that can effectively coordinate their efforts.
A Lifeline for Independent Production
The growing trend of branded entertainment has served as a lifeline for independent production companies. These companies can expand their slates with brand content, even as TV production declines and feature films remain challenging to produce.
The Future of Branded Entertainment
Brands are developing slates that include digital, creator, and social footprints. They're releasing original programming on platforms like YouTube, Instagram, and TikTok, and major streaming services are also getting on board. The push for more "performance" marketing has led to the production of more content in more places, with a focus on measurable results.
The Bottom Line
While Hollywood and Madison Avenue may still speak different languages, the genie is out of the bottle. Brands need to be more ambitious with their content, forging direct relationships with consumers and partnering with creative talent. The internet has changed the game, and brands are adapting to command people's attention in this rapidly evolving cultural landscape.
This shift in the entertainment industry is an exciting development, and it will be interesting to see how brands continue to push the boundaries of storytelling while staying true to their core values and products.
