After a break because of Covid, the Cannes Lions International Festival of Creativity has returned for 2022. Ahead of the first day of the Festival, the organisers revealed that a total of 25,464 entries from 87 countries will compete to become the global benchmark for excellence in creativity and effectiveness for the year ahead.
The winners of the Lions will be announced at evening Award Shows taking place throughout the Festival, from 20-24 June 2022.
Many daytime events give festival-goers the chance to enjoy the delights of the Mediterranean coast. A sun hat is advised of course with temperatures touching 30 degrees every day with a thunderstorm forecast to interrupt the sundrenched week on Wednesday.
PwC Global Entertainment Outlook
PwC took the opportunity to release its latest global entertainment & media (E&M) outlook on day one of the Festival.
PwC reported the industry surged ahead last year, outpacing overall global economic growth.
Following a pandemic-related 2.3% decline in 2020, E&M revenue rose a strong 10.4% in 2021, from US$2.12trn to US$2.34trn.
Findings in this year’s Outlook include:
Global video games and esports revenue totalled US$215.6bn in 2021 and is forecast to grow at a 8.5% CAGR to US$323.5bn in 2026. Asia Pacific generated the lion’s share of revenues in 2021 with US$109.4bn, almost double North America, the second highest region. Gaming is now the third-largest data-consuming E&M content category, behind video and communications.
Advertising’s spread throughout the digital world has made it a dominant industry category. After a decline of nearly 7% in 2020, advertising grew an impressive 22.6% in 2021 to US$747.2bn. Driven almost entirely by digital, advertising is set to grow at a 6.6% CAGR through 2026. Internet advertising revenue is seen growing even faster, expanding at 9.1% CAGR.
In 2026, advertising is projected to be a $1tn market and the largest E&M revenue stream, having surpassed consumer spending and internet access.
After growing by 35.4% in 2020, Over-the-top (OTT) video surged another 22.8% in 2021, pushing revenues to US$79.1bn. The pace of OTT revenue growth will moderate somewhat; it is expected to grow at a 7.6% CAGR through 2026, pushing revenues to US$114.1bn.
Traditional TV, beset by competition from OTT streaming services, still generates considerable revenues, with global revenues projected to shrink at a -0.8% CAGR from US$231bn in 2021 to US$222.1bn in 2026.
Global cinema revenue is bouncing back, reversing its pandemic-driven losses, and is expected to reach a new high of US$46.4bn in 2023. Box office revenue is projected to reach US$49.4bn in 2026 from US$20.8bn in 2021, an 18.9% CAGR. China surpassed the US to become the world’s biggest cinema market in 2020, and is expected to retain this leadership through 2026.
Live music revenue is projected to exceed pre-pandemic levels in 2024. Digital music- streaming subscriptions are driving growth in the recorded music sector where revenues are forecast to rise from US$36.1bn in 2021 to US$45.8bn in 2026.
President of Ukraine, Volodymyr Zelenskyy
Cannes Lions 2022: Speakers Day 1
An impressive list of people took the stage as the Festival powered up. None more so than the President of Ukraine, Volodymyr Zelenskyy. “The end of this war depends on the world’s attention,” said the President via video. “And that’s why I need the Lions. We need people like you, the most creative people in the world. Your campaigns and your work will make our fight for freedom legendary. We are fighting not only for our freedom, but for the freedom of the entire democratic world.”
Also speaking about some of the challenges Ukraine is facing was singer-songwriter Jamala Bird.
Another speaker talking about taking on the war in Ukraine was former world chess champion and now chairman of the Human Rights Foundation, Garry Kasparov.
Also sending a message was Amazon (the place, not the company) activist Txai Surui speaking passionately about the deforestation of the Amazon rainforest and how it is affecting indigenous people.
The Triple Jeopardy of Attention
One much-anticipated session was from WARC at Cannes Lions labelled The Triple Jeopardy of Attention. Karen Nelson-Fields, the founder and executive director of Amplified Intelligence and Professor of Media Innovation at The University of Adelaide, reinforced the importance of creativity in driving business results, but noting each platform and format has its limits.
Another speaker for WARC, and one known to Australian marketers, was Peter Field with his views on the correlation between marketing spend, viewers’ attention and business growth in today’s media landscape.