The debate over creativity and RoI (return-on-investment) has been doing rounds in the ad-land for a long time. With advertising agencies working with brands to drive the RoI, the question that haunts the industry is whether the relationship is revenue driven or creative. Interestingly, much of this is achieved by understanding the target audience, market research, and utilisation of data analytics, among others. In a conversation with BrandWagon Online, T Gangadhar, co-founder and group chief executive officer, Quotient Ventures, spoke about strategic planning by advertising agencies to enable brands to achieve a better RoI. (Edited Excerpts)
What are the common challenges that you have faced while working with different types of brands?
The importance of brand building is widely acknowledged by everyone. While marketing, advertising and sales holds a great importance, at the core, we firmly believe that the key to commanding a higher price or a premium pay and remaining steadfast in brand loyalty lies is creating a powerful brand. The stronger the brand is, the better it is equipped to withstand the allure of other competing brands. So, in terms of the challenges at hand, and the clients we collaborate with, comprehend this factor and share a common commitment to building strong brands. Consequently, they perceive us as capable partners in this endeavour.
Great creativity and Return on Investment (ROI) are not mutually exclusive. What are your views on the same?
In my perspective, there is no inherent contradiction between creativity and Return on Investment (ROI). I firmly believe that exceptional creativity can lead to significant ROI. I believe that better ROI should stem from impactful endeavors carried out for the benefit of the client. Therefore, ROI should be a consequence of creativity, and not the opposite of creativity.
Marketing has now become a sales-driven function to drive revenue, but now advertising is also required to drive sales, so do you think such pressure has also started seeping into the advertising agencies working for the brands?
I believe that agencies working closely with a brand will always empathise with its challenges. In terms of business dynamics, it is essential for agencies to support brands as valuable partners in order to foster mutual growth. It is rare to come across a scenario where an agency thrives while its clients struggle. Therefore, it is not merely about clients transferring pressure onto agencies, but rather how dedicated agencies embrace and actively contribute to a brand’s growth. I don’t believe clients are attempting to impose their targets onto agencies.
With a muted market sentiment, how are advertising agencies working with brands to create cost-effective ways to get the maximum RoI?
When collaborating with a brand, an agency is entrusted with a specific goal to accomplish within a given budget. If the budget holds significant importance, the agency ensures that the solution being developed respects the financial limitations of the client. Budget is regarded as a constraint similar to other considerations, and agencies are consistently conscious of its impact. Throughout the process of creating campaigns, there is always a clear communication with the client, aiming to achieve maximum impact while working within the confines of the available budget and resources.