The news: Microsoft dropped its first homegrown AI models—MAI-1-Preview and MAI-Voice-1—to prove it can build top-tier AI in-house, not just lean on OpenAI (where it owns 49%). Our take: Microsoft now has a chance to set its AI apart, capture first-party data at scale, and sharpen its models using real-world feedback. Developing its own AI also prepares Microsoft for a future where OpenAI may shift from partner to rival.
The news: Meta is struggling to retain talent after its splashy, expensive efforts to poach workers from OpenAI and Google, raising concerns about retention and the stability of its AI strategy. Multiple staff members recruited from OpenAI have returned to their former employer within weeks, per Wired. Some veteran Meta employees have also exited, potentially due to frustrations over the sky-high compensation packages offered to newcomers. Our take: This staff exodus intensifies concerns about Meta’s retention and organizational stability. Money may not equal loyalty, and the departures highlight both the limits of using compensation alone to win the AI talent race and a need to rethink how company culture, values, and mission factor into recruitment strategy.
The news: AI is revolutionizing the way social media managers (SMMs) work, but spending on the tools is surprisingly low. 73% of SMMs, content creators, entrepreneurs, and marketers use AI, per Metricool’s 2025 State of AI in Social Media report. Two-thirds create at least half their content with it. Over half (52%) spend nothing on AI tools each month, and only 8% spend over $50 per month. Our take: Failing to monitor AI’s benefits and limitations could hinder teams’ ability to optimize content or justify investment to higher-ups. CMOs should recognize that adoption alone is not a strategy: Tie outputs to performance data, invest in secure tools, and incentivize teams to move beyond surface-level use to capitalize on AI’s potential.
Nearly three-quarters (73.5%) of US adults at least sometimes check prices or inventory online before visiting a store, according to a May survey from Locala and EMARKETER.
The trend: Retail layoffs have surged 249% in the first seven months of the year, according to Challenger, Gray & Christmas—and more cuts are likely to come as tariffs squeeze margins. Our take: Layoffs at large prominent retailers like Nike, Kroger, and Best Buy are a clear signal of what’s ahead. Staff cuts at these industry leaders suggest the sector is bracing for weaker consumer demand and persistent margin pressure. If the strongest players are retreating, weaker chains are likely to follow. These moves may prove the canary in the coal mine for a broader retail reset.
Instagram is currently testing a picture-in-picture (PiP) viewing option for Reels that will allow users to watch the short-form service outside of the Instagram app. Instagram is reportedly prompting a small number of users to test the option, which includes a toggle for PiP in Instagram’s playback settings. While it’s a late move for Instagram, PiP Reels will extend the platform’s role beyond active scrolling, letting advertisers reach consumers during passive moments, unlocking a critical advantage in a crowded social landscape.
The summer boom for marketing interns was more of a thud: A report found that the number of ad industry internships has sharply declined since 2022.
The situation: Dollar General, Amazon, and Walmart are on a collision course as each races to speed up rural ecommerce deliveries and win loyalty in a market ripe for growth. Our take: Dollar General, Amazon, and Walmart are pushing hard into rural ecommerce because the growth potential is too big to ignore. The retailers that can pair speed with convenience will be best positioned to lock in lasting loyalty.
Snap debuted a new ad suite for marketers and developers, offering an “App Power Pack” that includes new bid strategies, ad formats, optimization strategies, and targeting capabilities to boost ROI, per MediaPost. Snap’s ad suite is an important step in the company’s efforts to cement its strength in advertising and curb slowing growth. We forecast the platform’s ad revenues will continue falling in the low single digits through 2027. But with competitors already offering similar products, Snapchat needs to go a step further to stand out.
US beauty shoppers are becoming more price conscious, even as overall spending continues to increase. The lipstick effect may have lost some of its punch, but it continues to support steady beauty sales. We expect US cosmetics and beauty sales to grow a relatively sedate 2.4% this year on strength in the hair and skincare categories.
The Atlanta Journal-Constitution will publish its final print edition on December 31, 2025, before becoming a digital-only outlet on January 1, 2026. Publisher Andrew Morse said the move will allow resources to flow into newsletters, podcasts, video, and a new mobile app. The 157-year-old paper has already posted double-digit digital subscription growth and expanded statewide reach. The shift mirrors broader industry trends: nearly half of US adults never read print newspapers, while digital ad spend continues to climb. AJC’s farewell to print underscores the inevitable math: audiences and advertisers are digital, and adaptation is survival.
Peacock is joining Prime Video’s ecosystem, giving viewers access to the service as an add-on with Prime subscriptions, per an Amazon announcement. The ad-free version of Comcast’s streaming platform will cost the same on Prime Video as it would individually. Peacock joins the likes of Paramount+, Apple TV+, and HBO Max in becoming part of Prime’s ecosystem. Peacock’s integration into Prime Video turns a mid-tier streamer struggling with profitability into part of a premium bundle, giving advertisers access to a larger, more engaged audience part of Amazon’s high-value ecosystem.
Google staff are quietly preparing Ad Manager for life as a potential stand-alone company, per The Information. Employees recently met with ad agencies—an unusual move for a publisher-facing business—as a federal court considers whether Google must divest its ad tech unit. Ad Manager generates an estimated $5 billion in annual revenues but faces declining demand and complaints from streaming players and publishers about slow innovation. With DOJ regulators pressing for a spinoff and rivals like Magnite and PubMatic gaining ground, Google’s outreach underscores how seriously it views the threat of breakup and the need for buyer-side relationships.
Nike, H&M, and Louis Vuitton will see their share of the global apparel market fall this year, according to a report by GlobalData. Meanwhile, adidas, Shein, Uniqlo, and Skechers will be the biggest winners as shifting trends and tariffs reshape the apparel industry. This year’s apparel winners share two key traits: agility in responding to consumer trends and the ability to offer products that are either affordable or that shoppers deem to be worth the expense. These factors are emerging as critical competitive advantages, especially amid economic and tariff pressures.
Google’s AI-powered video creation platform, Vids, has surpassed 1 million monthly active users, fueled by a new free tier and updates that simplify production. Features include motion effects for product photos, AI transcript editing, Google Meet integrations, and expanded social formats. Paid users retain advanced options like multi-style AI avatars. The adoption highlights rising demand for scalable video workflows—46% of professionals already use AI for images or videos, per EMARKETER. With ideation and personalization ranking as top genAI use cases, Vids is positioning itself as a daily creative tool, potentially joining Docs and Slides in Google’s productivity suite.
On today’s podcast episode, we discuss the biggest discrepancy by device with regards to where we spend our time versus how many ad dollars are aimed there, why social players want to take a page from YouTube’s CTV playbook, and why sub OTT’s unusual path to advertising has created major misalignments. Join Senior Director of Podcasts and host, Marcus Johnson, Principal Forecasting Writer, Ethan Cramer-Flood, and Senior Analyst, Minda Smiley. Listen everywhere and watch on YouTube and Spotify.
Historically, search engines and social platforms acted as gateways, linking to other sites for consumers to continue reading, researching, or shopping. Now, those platforms are answering queries directly within their own ecosystems, resulting in a “zero-click search.”
The findings: Financial institutions (FIs) that have enabled buy now, pay later (BNPL) for debit cards see increased card usage frequency, higher spending, and larger purchases, per recent equipfi analysis cited by The Financial Brand. Why this matters for FIs: The BNPL explosion is over, as user growth decelerates and the industry reaches maturation. But FIs can still find value in BNPL. By integrating BNPL directly into existing debit card programs, banks stand to increase card usage, strengthen customer loyalty, and boost revenues. This strategy also turns debit cards, a very traditional banking product, into something that can better meet consumer needs. Today’s banking customers crave flexibility—and it’s especially important to Gen Zers.
The news: Citi Wealth has launched AI-driven tools for employees aimed at improving client communication, per a press release. Our take: AI platforms will deliver the greatest impact when banks shift them from passive information repositories to active drivers of business growth. This will require integrating the tools with other systems. For example, an AI assistant could automatically draft personalized client emails in response to a market event identified by Advisor Insights. A human advisor could then review and send the emails. This level of integration would increase the speed of personalized outreach, giving banks a competitive edge in maintaining and growing client relationships.