The wave of mega-mergers in advertising is creating a two-tiered industry. On one side are giant holding companies like Omnicom and Publicis. On the other are thousands of small, agile independent shops, often founded by the talent shed during these consolidations, creating a clear strategic choice for brands.
When its Sydney Sweeney ad faced backlash, American Eagle's CMO and the star refused to apologize, treating the "crisis" as an opportunity. They correctly identified the outrage as niche, stuck to their strategy, and saw record new customer growth. This marks a shift in brand bravery.
Brands are now combining price hikes with "shrinkflation," a tactic dubbed "maximiniflation." Milka chocolate, for example, raised its price and reduced its bar size, causing a 20% sales drop in Germany. Consumers are now hyper-aware of these dual tactics, making it a critical risk for brand reputation.
Tylenol faced a crisis when political figures linked their product to autism. Instead of a major response, they issued a short press release and waited, correctly assuming the news cycle would move on. This "do nothing" approach, borrowed from military strategy, can be a valid option.
By re-running a successful past Christmas ad, Amazon guaranteed an emotional hit, avoided creative fatigue, and reallocated the entire production budget to media spend for a bigger share of voice. This "bake your cakes longer" strategy challenges the industry's obsession with newness.
Tesla's budget Model 3, a "fighter brand" designed to combat cheaper Chinese EVs, is likely to fail. These brands often end up cannibalizing the company's own premium products at lower margins and distracting from the core strategy, rather than hurting the intended competitor.
Advertising is "polysemic," meaning its short, visual nature invites multiple, often contradictory, interpretations. When facing backlash (like American Eagle's ad being called racist), brands should defer to the "authorial intent." Respecting all interpretations doesn't mean capitulating to a minority view that misreads the intended message.