February 28, 2024

U.S. Supreme Court Weighs Future of Social Media Speech

The future of free speech and how its exercised online are under review by the U.S. Supreme Court. The high court is determining whether social media platforms like Facebook and TikTok are liable for content their users post. Impending rulings could fundamentally impact online free speech. So far, reports indicate the justices appeared skeptical of Texas and Florida laws regulating social media content moderation, suggesting the states’ legislation may violate the First Amendment.

Social media companies are facing more scrutiny as lawmakers pursue increased regulation. The Florida Legislature has passed a bill that would prohibit people under 16 from creating social media accounts. A handful of other states passed similar legislation last year, though federal courts have already blocked less restrictive laws in Ohio and Arkansas.  

BuzzFeed and Vice Downsize Further as Media Morphs

More media companies are consolidating and cutting costs. BuzzFeed, Inc. has sold its youth-focused entertainment company, Complex Networks, to NTWRK for $108.6 million. The move is part of a larger restructuring in response to declining advertising revenue. Washington DC-based NPR affiliate WAMU is shutting down its news site, DCist, due to funding shortfalls.

Both digital and legacy media companies are struggling to stay profitable. Vice Media’s new owners are planning to lay off several hundred employees and close down Vice.com. Many Vice employees are expressing concern regarding the deletion of the site’s content, which follows a broader trend of disappearing news websites and the implications for journalists’ work. Journalists at The Desert Sun are set to strike against Gannett, citing stagnant pay and rising healthcare costs.

Edelman Sees First Revenue Decline Since 2020

Some signs are suggesting a potential slowdown in the PR industry. Edelman, the world’s largest PR firm, reported its first revenue decline since 2020, and only its second since the global financial crisis of 2008. The downturn reflects broader industry challenges, from the emergence of AI to the changing nature of work. But while the industry is adapting, the need for good communications has never been greater.

To keep up with rising expectations, consultants must maintain strong client relationships. This hinges on establishing genuine connections, understanding client needs thoroughly, and effectively navigating both successes and failures to foster long-term growth. Identifying, tracking, and reporting relevant metrics is also essential, as more businesses look for evidence of effective PR.

Sequence Summaries: Social Scrutiny, Cutting Costs, and PR Problems

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February 21, 2024

OpenAI Announces Text-to-Video Tool Sora

The hype around generative text AI is now shifting to video. OpenAI has announced Sora, a text-to-video tool that generates photorealistic videos from text prompts. The potential impact of the emerging technology across the communications industry is significant. Generative video AI will likely further disrupt the filmmaking industry as production companies and studios continue to downsize.

While some advertisers see Sora as a boon, many creative and production professionals are in suspense. Integration of AI in the workforce has tremendously impacted the tech and media industries, leading to massive job losses and economic anxiety. Many are also concerned about the ethical implications of text-to-video technology and its potential misuse.

Tech and News Companies Jumpstart Generative AI Efforts

As generative AI expands, more companies are coming to terms with the technology. Reddit has entered into a $60 million annual deal with an unnamed large AI company to train its models on the social platform’s content, which relies heavily on human-driven conversations. The deal comes ahead of Reddit’s expected initial public offering.

Newsrooms are also accelerating efforts to harness generative AI. The New York Times is now courting partners to evaluate generative AI-driven ad-targeting. The newspaper recently announced a strategic shift toward AI following news that the paper is suing OpenAI over copyright infringement. Major tech companies—including Google, Microsoft, and Meta—have agreed to develop technology to identify and rein in AI-generated election disinformation.

YouTube Tops TV Streaming as News Consumption Changes

New data is shedding light on media consumption habits. Nielsen Media Research reported YouTube as the leading streaming service for television over the past year, with nearly 8.6% of TV viewing usage, surpassing Netflix’s 7.9%. While television remains a popular option for news consumption, growing numbers are turning to social media for news. A new study showed more than one-third of Generation Z use social media as a primary election information source.  

Measurement is becoming more critical for communications consultants as client expectations rise. Cision’s 2024 Global Comms Report found that only one-quarter of communications leaders are confident in their organization’s PR measurement tools. More PR pros are exploring AI tools to accomplish data-heavy measurement tasks. Keeping a robust media database is most critical for good media relations.

Sequence Summaries: Sora Suspense, Generative Jump, and Meaningful Metrics

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February 14, 2024

Paramount Makes Major Shakeup as Media and Tech Cuts Continue

Major shakeups in media and tech continue to dominate the landscape in 2024. Paramount Global is laying off 800 employees, approximately 3% of its workforce. The cuts come as the company consolidates franchises and adapts to changes in media consumption. The Paramount layoffs also affected CBS News—nearly 20 staffers were let go, including top correspondents Jeff Pegues and Catherine Herridge.

There’s no sign that tech sector layoffs will slow down any time soon. Grammarly is undergoing business restructuring by eliminating 230 positions. Instacart also laid off nearly 250 employees while Mozilla is scaling down by shedding 60 positions. Mounting job losses in 2024 have executives concerned. Nearly 40 percent of business leaders recently surveyed believe that layoffs are likely at their organization.

Generative AI Use Increases while Managers Fret Over Future

More experience with AI is shifting opinions among communicators and PR pros. The Institute for Public Relations has published a new report summarizing the use of generative AI among communicators. Findings from the PR software company Muck Rack show that use of generative AI among PR pros increased from one-third to two-thirds from March to December 2023.

The onslaught of generative AI tools and policies are reshaping the global economy in real-time. While many business leaders still believe automation will benefit their organizations, growing numbers of managers are concerned. More than half of senior white-collar managers recently surveyed are worried their jobs could be automated by generative AI, leading to a middle-management collapse.

More Executives are Looking for Strong Communicators

Good communications have always played an integral role in stemming the flow of misinformation. The latest Edelman Trust Barometer shows continued distrust, with more than 60% of respondents concerned that institutional leaders intentionally mislead people with false information. Communicators can help leaders rebuild trust through strategies that prioritize listening, quality content creation, and leveraging trusted peers to rebuild public trust.

Communication remains the most sought-after job skill on LinkedIn, according to new data from the business networking site. More global executives are looking for strong communicators, with large majorities of business leaders prioritizing human skills.

Sequence Summaries: Large Layoffs, AI Increases, and Key Communications  

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February 7, 2024

Snap, Okta, and DocuSign Slash Tech Jobs as Cuts Continue

Just weeks into 2024, layoffs are already significantly impacting the tech and media industries. Overall, job cuts have been particularly severe across all industries, with the second-highest layoff total for the month of January recently recorded. However, cuts were 20% lower than the same time last year. A recent survey of top executives indicates that retaining and engaging employees is a top priority and challenge for CEOs in 2024.

Tech cuts have been consistent. Okta, a U.S.-based access and identity management company, is laying off about 400 employees, or 7% of its global workforce. Snap is reducing its workforce by 10%, roughly 500 employees. The social media company has struggled to generate income amid losses in ad revenue. Online signature provider company DocuSign announced it would eliminate 440 jobs, about 6% of its workforce.

The New York Times Explores AI While Apple Prepares New Efforts

While The New York Times has taken legal action to prevent chatbots like OpenAI from training on its content, the newspaper is leaning into AI in other areas. The Times hired new Editorial Director of AI Initiatives Zach Seward, who will develop the paper’s policies around generative AI. The team will employ a machine learning engineer, in addition to new roles exploring AI in the newsroom.   

Apple announced it will reveal more about its generative AI efforts later this year, as the tech giant looks to compete with Microsoft and Google. A recent report of nearly 3,000 senior leaders in tech and business show that vast majorities of C-suite leaders expect generative AI to transform their organizations, but only one-third believe they have high-quality AI expertise.

Social Media CEOs Grilled by Lawmakers

CEOs of major social media companies were on the congressional hot seat as legislators grilled tech executives on children’s health and safety and the impact of their platforms. Meta CEO Mark Zuckerberg apologized to families who had been invited by lawmakers. The Senate Judiciary Committee’s hearing was a rare display of bipartisan support for an issue that has rapidly risen among regulators.

TikTok continues to be the most popular social media app among children age 4-18—new data show kids are spending nearly two hours on the platform per day. According to Pew Research, most U.S. adults use Facebook (68%) and nearly 50% use Instagram. Bluesky, initially an invite-only app funded by Twitter co-founder Jack Dorsey, is now publicly accessible.

Sequence Summaries: Constant Cuts, AI Evolution, and Social Sessions

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January 31, 2024

More Executives See Lasting Power of Good Communications

New survey data from Cision show 92% of senior-level communicators were sought out for counsel by their organization’s top executives, up from 87% in 2021. The report also indicated leaders are looking to PR pros to provide more measurement, with 42% of communicators reporting they heavily rely on data and analytics—up from 30% a year ago.

As client needs change, comms conglomerates are shifting strategies. Major communications firms are restructuring amid industry-wide adjustments in PR and advertising. Global communications giant WPP is consolidating two of its largest agencies, BCW and Hill & Knowlton. The merger will create a new communications group called Burson.

Innovation and AI Shake Up Search Market

Google has begun phasing out cookies, ceasing the tracking of Chrome users for targeted advertising. More than 30 million people—roughly 1% of Chrome users—are no longer being tracked, with the goal of turning off cookies for all users by the end of 2024. Google is replacing cookies with the Attribution Reporting API—an interface that purportedly protects privacy by encrypting user data.

Since the emergence of generative AI chatbots like ChatGPT, search alternatives to Google and traditional engines have never been more prevalent. Data show young people are significantly more likely to use social media platforms like TikTok for search. A new report about TikTok’s search algorithm indicates the platform suggests sensational content to drive up engagement.  

Media Layoffs Persist Across Industry

While continued cuts across tech are dominating headlines, the media and news industry is also experiencing a relentless reduction of roles. Iconic magazine brands TIME and National Geographic are joining Sports Illustrated with additional rounds of layoffs. Longtime music publication Pitchfork is being absorbed by GQ in a move by publisher Condé Nast, which cut 5% of their staff last fall.

As cuts continue, media members keep organizing. From union action to job walkouts, workers are assembling to resist reductions. Unionized journalists at Forbes recently participated in the magazine’s first-ever walkout. Washington Post CEO Will Lewis has voiced concerns over the sustainability of the existing news model—the Post eliminated 240 positions through buyouts last year.

Sequence Summaries: Strategic Shifts, Ad Algorithms, and Relentless Reductions

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January 24, 2024

L.A. Times in Turmoil amid More Media Mayhem

The Los Angeles Times is laying off one-fifth of its newsroom as it undergoes one of the largest downsizes in the newspaper’s nearly 150-year-old history. The media outlet has been in disarray with the departure of its executive editor and ongoing tensions between the paper’s billionaire owner and a strained staff. After emergency meetings by the L.A. Times Guild last week, union members staged a walkout in advance of the cutbacks.   

Iconic magazine Sports Illustrated is planning to let go nearly all of its journalists after ownership ended the outlet’s publishing agreement and announced its own staff reductions. David D. Smith, executive chairman of Sinclair Broadcasting Inc., is purchasing The Baltimore Sun in an attempt to make the newsroom more profitable. Some have expressed concern that new ownership will apply editorial pressure to the longtime Maryland newspaper.

World Leaders Worry about Crumbling Confidence

Edelman’s 2024 Trust Barometer is shedding new light on how institutions and ideas are perceived by the public. This year’s findings indicate an ongoing decline of confidence in authority, as more people look to peers to stay informed. The annual evaluator of reputation and trust also reported that people across the globe believe that innovation has not been well-managed.

Trust was a leading topic at the recent World Economic Forum in Davos. While leaders were encouraged by positive global economic news, uncertainty around geopolitical conflict and rising disinformation drove discussions. A new Oxford study found that audiences perceive news labeled as AI-generated as less trustworthy, regardless of the article’s accuracy. To build trust online, some have suggested social media companies require mandatory profile verification of human users.

Communications Competitors Challenge the Status Quo

Innovation and emerging technology has transformed the public relations industry. As efficiencies and tools empower individuals, agencies are facing challenges to PR primacy. Shifts in productivity have meant fewer clients willing to engage firms for tasks that AI has outsourced. Traditional agencies that have not embraced a hybrid work model have struggled to retain staff and meet rapidly rising expectations for remote work.

An in-depth analysis of AI use in the PR industry found that firms are using artificial intelligence for content creation, ideation, and social listening. These findings were reflected in a separate survey of PR professionals who cited content generation as the top trend for AI in 2024.

Sequence Summaries: Media Mayhem, Trust Talk, and Comms Competition

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January 17, 2024

Amazon, Meta, and Google Announce Additional Cuts

An astonishing amount of layoffs are mounting in the tech sector just weeks into 2024. Google is laying off hundreds of workers across multiple divisions, including those from its Google Assistant and Pixel phone teams. Meta-owned Instagram has eliminated 60 management positions, and messaging platform Discord has reduced its workforce by 17%.  

Amazon is laying off hundreds of employees from its Prime Video and MGM Studios divisions. Amazon-owned entities are also cutting back: audiobook maker Audible has laid off 5% of its workforce, while its livestreaming platform Twitch has cut its workforce by 35%. The retail giant has let go more than 27,000 workers since 2022. Disney-owned Pixar is also projecting significant layoffs later this year.

Policymakers Prepare for a Wave of Political Misinformation

With the Iowa caucuses in the books, the 2024 U.S. election season is officially underway. Legislators in state houses are ramping up efforts to rein in AI. Since December, seven states have joined a handful of others that have introduced legislation to regulate AI in political advertising. New research suggests exposure to societal and political information can impact consumer choice and diminish brand trust.

A new study ranked AI misinformation as the top global risk for 2024, ahead of both climate change and economic uncertainty. Artificial intelligence will be a prominent topic at this week’s World Economic Forum, where leaders will gather to discuss the economic and political impact of mis-and-disinformation. OpenAI has announced that it will not allow users to build generative AI applications for political campaigns or lobbying.

RTO Less of a Priority for CEOs in 2024

Research suggests that remote work will remain a fixture of workplaces for the foreseeable future. The Conference Board conducted a survey of top executives that found only 4% of CEOs are prioritizing a full return-to-office in 2024. Most companies have opted for a hybrid work schedule.

A new report shows companies have a lot at stake in getting internal communications right, as findings show ineffective communications costs businesses up to $2 trillion per year. The International Monetary Fund has cautioned that AI will likely deepen global inequality and affect up to 40% of the world’s jobs.

Sequence Summaries: Tech Layoffs, Political Misinfo, and Recent Research

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January 10, 2024

OpenAI Responds to The New York Times Lawsuit

OpenAI has provided additional details about its intention to collaborate with news organizations in the wake of The New York Times’ lawsuit on copyright infringement. The company says it had been in negotiations with The Times to feature and cite content—a partnership similar to its recent agreement with Axel Springer—before talks broke down.

More details are emerging about OpenAI’s attempts to court publishers. OpenAI reportedly offers between $1 million and $5 million a year to news publishers for access to content. The AI company has argued that publicly available materials its products train on fall under fair use, but that publishers can opt-out regardless.   

New Data on AI Use Among PR Pros and Big Changes to Online Advertising

A new survey is shedding light on AI’s impact on PR consultants and agencies across the country. Muck Rack released the State of AI in PR 2024 report to track how generative AI is evolving. Top findings show the use of AI among PR pros surged from 28% to 64% in 2023. Findings also show the vast majority of respondents feel AI has improved and expedited their work. Fewer than one-fifth of agency staff, and just over one-third of brand communicators, always disclose the use of AI to clients.   

The world of advertising is entering a new era. Google is moving forward with significant changes to online user tracking by phasing out cookies, a move that the advertising industry is not fully prepared for, despite the forthcoming elimination of cookies for all Chrome users by the end of the year.

Tech and Media Layoffs Continue Into 2024

A turbulent time for tech and media appears to be continuing into the New Year. Cheddar, a financial news network targeting younger viewers, placed some employees on unpaid leave, citing “unforeseen internal and external factors.” The news follows its sale from Altice USA to private-equity-controlled Archetype last month. Digital news start-up The Messenger is laying off approximately two dozen employees as it seeks additional funding in a tough digital ad market.

The tech industry continues transforming into 2024. More economic evidence of automation’s impact on tech surfaced with news that language-learning software company Duolingo is cutting 10% of its staff, as it leans further into AI. The digital printing company Xerox is laying off 15% of its workforce in a larger “reinvention” of its services.  

Sequence Summaries: OpenAI Answers, AI & Ads, and Continued Cuts

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