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There have been some big discussion points on LinkedIn in the past few weeks, discussing System 1's credibility. This one below is the one that has mainly fuelled it. It's an interesting read. My view: System 1 simplifies what successful creative looks like and much like NPS (although subsequently much criticised) distills this into a simple score that can help senior marketers sell a creative idea internally. Maybe it's not that credible, but maybe it's good enough? Perhaps competitors need to step up a bit? System 1 are master's of LinkedIn PR after all, even if Jon Evans has moved on from the company.

Here's that link:

https://www.linkedin.com/pulse/creative-dividend-masterclass-everything-wrong-research-gilbert-bkckc/

Really can't agree with Kathy Ross at Gartner. Richard Huntington, former CEO at Saatchi and Saatchi (Publicis agency) recently posted on LinkedIn that he thinks the ad industry staff numbers could be as little as 10% of the numbers from pre-Covid. AI is transforming the industry across all parts of it.

The future will quite likely be predominantly work created by AI systems (insight, strategy, creative, production and media planning and buying), supported by smart and experienced heads. Contrary to this, there I'm sure will be a role for premium craft based work, possibly from indies or indie-type shops owned by a network (Eg: Uncommon).

I think more head count culling is coming across the industry.

The big question is what is next for System1. Is there something transformative on the horizon? Or more of the same? Transformative in that they have a great set of data (Mark Ritson talked about this on his podcast chat with Jon Evans), but what do they do with this? Especially when brands want to make more and more content, opting to let the algorithm decide on its success rather than any pre-testing. Could they be bought by a holding group, primarily for their data? Or will holding groups generate their own data? And where does AI sit with all of this? I think things could get really exciting for System1 in the next 12 months or... they could get left behind and fall flat on their face, if they just plod along.

Darien, I guess I am some kind of guru compared with anyone who is investing blindly in this stock, given I have 30+ years in the ad industry. Yes they have proprietary software, but so do competitors. All the ad holding companies are pivoting to AI, offering end-to-end solutions. They'd be mad to not include synthetic research within that and their own bespoke effectiveness prediction tool / system for any 'brand' based creative, cutting out the need for System1 altogether. Go ask ChatGPT for an alternative point of view if you like.

So looks like Ennismore was the seller. Something they know?

This isn't a HiTech company. It's a market research company. Too many have got burnt by that kind of rubbish before.

System 1 are brilliant at marketing themselves. Especially Jon Evans and Andrew Tindall on LinkedIn and the studies and books that involve Orlando Wood. They also give away a lot of insight for free, whether that is free reports / sessions / individual reports for certain ads.

They're great at getting Mark Ritson involved (assume paid) and have run studies with the IPA Effectiveness Awards and Effies correlating the successful case studies with their star rating and within that have more borrowed credibility from the likes of Les Binet and Paul Feldwick (both wise and established ex-agency planners)

Agencies like them as they help build an industry case for better and more emotive creative work vs rational. Showmanship vs Salesmanship as Orland Wood calls it.

The star rating feels like a great number to give to a CEO / the board, if they are on board with the methodology and credibility of it. A bit like NPS.

They're trying to crack the US. I expect that'll be a tough nut to crack, but very lucrative if they do.

So what are the potential problems that they face?

Is there belief in the star rating? Certain types of ads as you'd expect score really well (John Lewis, Cadbury's) - high emotion and funny are a good way to get a 4 or 5 star ad (the holy grail). But then a rather dull ad from a high interest category (eg dog food or chocolate) can score really well too? Which then makes people a bit sceptical with it all?

Is there a problem with a focus on the star rating (they do have two other scores too)? Where the likes of Kantar will likely go into more depth.

Can a competitor replace them? Yes, almost certainly, coming up with something similar, using AI (Eg: Synthetic research) and then under-cutting them.

Is there going to be less demand as more money flows out of TV and into Social, where production costs are lower and turn around is faster and where the algorithm acts as an arbiter as to which ads work best?

As big campaigns become multi-faceted and complex (think 30 or 40" TV ad, 15" and 8" pre-rolls, hundreds of paid social ads, organic social ads, Outdoor, radio etc...), how can System 1 and its competitors take into account all elements, rather than just the hero film? (NB: System1 do test other areas such as TikToks, Outdoor and Packaging).

Anyone else in the industry got anything to add to this?

Thanks Lockie. I think I picked up some of your shares for a pittance.

Here's wha they say:

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Synairgen plc is a company focused on discovering and developing drugs for respiratory diseases, with a market cap of £9.77 million.

Operations: Currently, there are no reported revenue segments for this company.

Market Cap: £9.77M

Synairgen plc, with a market cap of £9.77 million, is pre-revenue and unprofitable, reporting a net loss of £3.26 million for the half year ended June 30, 2024. The company has no debt and its short-term assets (£10.5M) comfortably cover short-term liabilities (£1.1M). Despite high volatility in its share price over recent months, Synairgen maintains a stable cash runway for more than a year based on current free cash flow levels. Recent board changes include appointing Mark Parry-Billings as Chairman, bringing extensive experience in respiratory therapeutics to guide Synairgen's strategic direction.

It looks like a few posters on here are tad unhappy that the Share price has gone up. Perhaps they're a bit desperate because they shorted, thinking that news of a fund raise would bring the SP down? Oh dear indeed.

Would investors prefer no large p2, without any dilution. Or a large P2, with dilution ?

I suspect that the market would prefer the latter, no matter how painful a dilution might appear to be.

Macosta, isn’t this what you wanted? Board changes? So why so negative?

Gampy, AndyB is a genius. Every so often he imparts his wisdom on us, when he feels like giving us plebs a few crumbs from his vast table of knowledge. Some might think he's a narcissist, pretending to himself that he's a pure genius, but that's just not true. He's a humble and generous genius. He's my hero.

Keep on predicting that Josh and you might be right one day.

Scinv, You really ought to improve your maths skills. Slating Tommy for his trading with a 3p differential. That worked out (if true) to an 80% gain.

I suspect that there are two types of company on AIM. Those that communicate with their shareholders on a regular basis, with even minor morsels if news and those that only do so when there is important news to announce. Synairgen obviously fall into the latter camp. If they started to change tune and changed their behaviour, by releasing irrelevant RNS after irrelevant RNS, investors would:

a. Question why are they changing their approach? Maybe sensing desperation on the part of the company, to keep shareholders sweet?

b. Be disappointed that the RNSes contain nothing substantial .

So, Synairgen are damned if they do, damned if they don't.

For those of us who have remained as calm as they can over the past few years, then maybe the Warren Buffet quote that we're all too familiar with, but often neglect, will apply: “The stock market is a device for transferring money from the impatient to the patient.”

Axe, I take it that with that news and opinion, you're selling your shares and quitting this message board on LSE now?

Can the trolls keep on trolling? I really fancy topping up, but want the SP to drop below 5p again.

So, come on lads, do me favour will you?

Do we need to set up a GoFundMe for Mr Cost's trip to the AGM?

TGF are not going to let the company their investment drop down to zero, so am sure they are making their voice heard.