Consumer Spending Trends and AI's Impact on Retail

David Steinberg predicts a strong holiday season driven by AI and consumer demand for both discounts and luxury goods.

### Market Insights: Consumer Trends and AI's Role in Retail
* 📉 The FDA recently **declined to approve a key drug**, impacting the pharmaceutical sector.
* 📈 Meanwhile, the consumer discretionary sector has surged, hitting a record high with **over a 12% increase** in November.
* 🤖 David Steinberg, Chairman and CEO of a firm utilizing AI and real-time consumer data, emphasizes the importance of **understanding consumer preferences** for **better client retention**.
* 📊 Addressing concerns from a short-seller report, Steinberg clarified that their organization does not engage in "**consent farms**," focusing instead on **ethical data acquisition** and providing **value to consumers**.
* 🛍 As the holiday season approaches, a "barbell effect" in consumer spending is observed, with increased demand for both discount retailers and luxury goods, showing a **21% uptick in luxury sales** in the U.S.
* 🎉 Steinberg predicts a **strong holiday quarter** for companies leveraging AI for personalized marketing and efficient consumer engagement, driven by a **late Thanksgiving** and **heightened marketing efforts**.
* 🛒 He believes that Amazon's strategies, particularly during events like **Black Friday and Prime Day**, are likely to succeed due to their **proven track record**.

The FDA declined to approve one of its key drugs. Back to you. >> Wow, Julia, thank you. >>> Meanwhile, the consumer discretionary sector hit a

record high today, up more than 12% in November. Our next guest runs a firm that uses AI and real-time consumer data to help clients acquire and retain

customers.  It can also give us an early sense of which categories are hot and not. Joining us now is Chairman and CEO, David Steinberg. It's great to have you.

Before we get into the data, I have to ask a question about the company and the stock. The stock was hit by a short-seller report earlier this month. One of the claims raised in

that report is that Zeta has consent forms on websites that are getting people to hand over more data than they intend. Are you involved in the consent forms at all?

Would you frame differently what these practices are? What should investors know about that? >> Let me start by saying the report was filled with misstatements.

IT DEPARTMENT EVEN GOT OUR AUDIT CORRECTLY. WE PUBLISHED OUR AUDIT FOR EVERY DOCUMENT WE PUT OUT THERE. I HAD TO ASK SOMEBODY WHAT A CONSENT FARM WAS IN ORDER TO

RESPOND INITIALLY. NO, WE NEVER DO CONSENT FARMS. OUR ORGANIZATION IS ONE OF THE MOST POWERFUL AS IT RELATES TO OUR DATA. WE HAVE SPENT HUNDREDS OF

MILLIONS OF DOLLARS OVER THE YEARS IN ACQUIRING COMPANIES THAT CREATE FIRST-PARTY DATA, WHERE WE PARTNER WITH THE CONSUMER. THE CONSUMER IS ALWAYS GETTING A VALUE EXCHANGE, WHETHER THEY'RE

GETTING A NEWSLETTER OR ABLE TO COMMENT ON A SITE, OR SHARE DIFFERENT CONTENT TO THEIR SOCIAL GRAPH. A CONSENT FARM IS WHEN SOMEBODY IS RUNNING MISLEADING ADS TO

GET SOMEBODY TO SIGN UP FOR SOMETHING THAT THEY HAVE NO INTENTION OF GIVING THEM. >> OKAY. >> WE NEVER DO THAT, AND WE HAVE NEVER DONE THAT, JON.

>> WELL, THANK YOU FOR GIVING A SUBSTANTIVE ANSWER TO THAT QUESTION. NOW LET'S TALK ABOUT THE HOLIDAY SEASON. OVER THE PAST COUPLE OF YEARS, THERE'S BEEN A SHIFT IN

Consumer spending towards experiences. Now the consumer credit stretch. What should we expect to see this season and how is it going to affect retailers?

>> And so it's interesting. We think it is more of a barbell effect, if you think about it. Right now we're seeing a big uptick in consumers looking for

discounts in retailers where you can't get bulk or wholesale-type products on the internet. And so 99-cent stores and other savings. And then we're seeing a big

uptick in luxury goods. 21% uptick in luxury goods in the United States. So I think it is very interesting. We think there's going to be a return to retail because of

this move to discount wants, while simultaneously seeing people at the higher end going into stores and buying online. >> We are right up at the end

of the hour, but I want to sneak in one more. Last season, especially loyalty was very important. A lot of companies that use AI and software to drive that did

WELL. IS IT GOING TO BE AS IMPORTANT THIS YEAR? >> WE THINK IT'S GOING TO BE A BLOWOUT QUARTER FOR COMPANIES USING ARTIFICIAL INTELLIGENCE LIKE ZETA.

WE'RE SEEING BIG UPTICKS IN HOW ORGANIZATIONS ARE USING A.I. FOR PERSONALIZATION TO THE CONSUMER, AND AROUND MORE EFFICIENT AND EFFECTIVE MARKETING. WITH THE ELECTION, IT SHORTENED

THE CYCLE WHERE PEOPLE ARE GIVING MIND SHARE TO THE HOLIDAYS. THEN THANKSGIVING IS LATE THIS YEAR. MARKETERS ARE REALLY GOING INTO OVERDRIVE RIGHT NOW. WE ARE SEEING THAT IN ZETA AND

IN A MEANINGFUL WAY. >> DO YOU THINK THIS BLACK FRIDAY, AMAZON PRIME DAY FOOTBALL THING IS GOING TO WORK? >> IT IS HARD TO BET AGAINST AMAZON. THEY TEND TO DO A REALLY GOOD

JOB. AND YOU'RE PUTTING FOOTBALL TOGETHER

Zeta Global CEO David Steinberg responds to short report

CNBC Television

Consumer discretionary sector hit a record high.

Zeta's stock was impacted by a short-seller report.

Report claimed Zeta's consent forms obtain more data than intended.

CEO denies the report's claims, stating it contained misstatements.

CEO explains Zeta's data acquisition practices and consumer value exchange.

Holiday Season Consumer Spending Predictions

Discussion on the shift in consumer spending towards experiences and credit constraints.

Prediction of a 'barbell effect' with increased spending on discounts and luxury goods.

Anticipation of a return to retail due to discount seeking and luxury purchases.

Importance of AI and Loyalty Programs in the Holiday Season

Last season's importance of loyalty programs and AI-driven marketing.

Prediction of a strong quarter for AI-powered companies like Zeta.

Increased use of AI for consumer personalization and marketing efficiency.

Marketers are intensifying efforts due to the late Thanksgiving and election.

Discussion on the effectiveness of combined Black Friday, Amazon Prime Day, and football promotions.