This back-to-school shopping season, it seems some parents are questioning where their loyalty lies. Brand loyalty, that is.

Majorities of parents said they’d choose affordability over their preferred brand or retailer while shopping for back-to-school supplies, according to a survey of about 1,200 parents of school-aged children conducted by Deloitte from May 22 to May 30.

But with the value of the $31.3 billion back-to-school shopping sales market holding fairly steady compared to last year, there are still opportunities for brands to create trust and loyalty among shoppers, Deloitte researchers, execs, and analysts wrote in its 17th annual back-to-school survey.

Bargain hunting: This year’s back-to-school shoppers are prioritizing value, per the report. For instance, they’re shopping earlier to secure the best deals, switching to private labels, and spreading their spending across more retail formats:

• As of May, 66% of back-to-school budgets were expected to be spent in July, compared to 59% last year, according to Deloitte.
• Half of survey respondents said they’ll buy private labels versus name brands, compared to 36% in 2023.
• Parents are also shopping across more destinations—an average of 4.7 formats, up from 3.9 last year. Online retailers and department stores are among the top options.

With 62% of parents looking to stick to their fixed budgets, brand loyalty is at risk, Deloitte found: 67% said they’d buy a different brand if their preferred option was expensive, and 62% said they’d shop at a more affordable retailer over their preferred choices.

Value add: Still, loyalty programs and incentives can help keep people shopping, as can a few other tactics, according to the report, like a time-honored child’s, “Pleeeeeeeeeease.” Many parents aren’t immune to the charms of their children, even when they’re on a budget.

Continue reading here.—AM

Nearly 75% of marketers are integrating AI and ML tools like ChatGPT and DALL·E 2 into their workflows, according to new data from Sprout Social. It’s definitely starting to look like AI-ville out there, but that doesn’t mean the same use cases work for every brand.

Good news: Sprout Social knows a thing or two about AI and marketing. They just put together a handy (and actually actionable) toolkit that spills the deets on how AI is changing marketing and the steps your brand can take to stay ahead.

We’re talkin’ essential resources like a:

• data report on what business leaders have to say
• workbook that helps solve pain points
• step-by-step implementation checklist
• video tutorial on acing the customer experience

Figure out how to put AI to work.

People are afraid AI will replace their jobs. Now, they also have their children’s creative development to worry about.

Google’s “Dear Sydney” ad, created for The Olympics, shows a dad asking Gemini AI to write a letter to track star Sydney McLaughlin-Levrone on behalf of his young daughter to let the athlete know “how inspiring she is.”

The ad, which Google created in-house, received swift backlash online, with outlets like Ad Age calling it “tone deaf.” Google has since pulled the ad from the air and turned off comments on the video on YouTube, but not before spending an estimated $2.7 million on TV ads between its debut and August 1, according to iSpot.

“We believe that AI can be a great tool for enhancing human creativity, but can never replace it. Our goal was to create an authentic story celebrating Team USA. It showcases a real-life track enthusiast and her father, and aims to show how the Gemini app can provide a starting point, thought starter, or early draft for someone looking for ideas for their writing,” Google spokesperson Alana Beale said in a statement shared with Marketing Brew. “While the ad tested well before airing, given the feedback, we have decided to phase the ad out of our Olympics rotation." Prior to it being taken down, Google CMO Lorraine Twohill called the ad a “beautiful example of how technology can bring us closer to turning dreams into reality” on LinkedIn.

We spoke with marketers about where Google went wrong and how companies should be thinking about advertising new technology—specifically AI—moving forward.

Continue reading here.—RB, KH

Each week, we spotlight Marketing Brew readers in our Coworking series. If you’d like to be featured, introduce yourself here.

Kristen Pumphrey is the co-founder and CEO of P.F. Candle Co., a home fragrance company based in Los Angeles. She and her co-founder Thomas Neuberger have also written a book, Home with Fragrance: Creating Modern Scents for Your Space.

How would you describe your job to someone who doesn’t work in marketing? I oversee all points of the product, from the ideation and development to the production, to how it’s presented to the world. My job is to bring fragrance to life in a digital-first format using evocative images and concepts.

Favorite project you’ve worked on? Our Toy Machine collaboration. Ed Templeton (Toy Machine founder) is an icon in the skate world, and for his illustration and photography. He designed three creatures for stickers to complement the custom scent we made for Toy Machine (inspired in part by the scent of a skateboard—maple wood). Such an honor, and I loved branching out of the box with this partnership.

What’s your favorite ad campaign? The old Subaru ads, “They Lived.” It worked on me.

One thing we can’t guess from your LinkedIn profile: Instagram is my LinkedIn.

What marketing trend are you most optimistic about? Least? I’m most optimistic about content marketing and how we’re treating social channels like mini TV shows now. It’s fun and brings the world of the brand to life. I’m least optimistic about pay to play. Seems like it’s only going to increase.

What’s one marketing-related podcast/social account/series you’d recommend? Our team regularly passes around Rachel Karten’s Substack, Link in Bio. She’s got a great holistic take on the social media landscape.

Let us make you smarter. Did you know you can listen to and/or watch the wittiest and smartest takes on business news? Morning Brew Daily covers everything from the latest headlines on the economy to explanations of viral TikTok trends. Find us on YouTube and all podcasting platforms.

Generative AI is still maturing, but marketers aren't waiting to integrate it into their workflows, from content creation to audience segmentation.

In this EMARKETER resource, explore how other marketers are effectively using generative AI. Access the guide now.

Mergers and acquisitions, company partnerships, and more.

• Ascential, the owner of Cannes Lions, is acquiring the “commercial assets” of the organization behind the Effie Awards.
• Autodesk was named as the “official design and make platform” of the LA28 Olympics and Paralympics, and of Team USA.
• Serta Simmons Bedding is working with sports and entertainment media company Team Whistle and Angel City FC forward Sydney Leroux to promote its new Serta iComfort Pro mattress.