Rather than being planning and placement agents of the past, media agencies are working to become business partners for their clients. They are now “solution crafters”, says Aditi Mishra, CEO, Lodestar UM, in an interview to Geetika Srivastava. Mishra also talks about the role of technology, especially generative AI, and how it will shape the industry’s future. Edited excerpts:
What are the three biggest challenges today’s media agency faces? What can be done to resolve those?
The three biggest challenges faced by today’s media agencies are talent acquisition, managing highly specialised client expectations within a generalised remuneration structure, and creating agile and dynamic team structures for growth. To address these challenges, the ecosystem needs to attract and retain top talent, reimagine client-agency relationships to align with specialised demands, and foster an environment that encourages flexibility and innovation. Additionally, investing in continuous learning and development programmes can enhance the skill sets of professionals and help them adapt to the evolving industry landscape.
How is the integration of technology changing advertising? How has that affected client-agency relationships?
The integration of technology is transforming advertising by providing new opportunities. While it brings tool parity, it does not guarantee product parity. The quality of human capital and how these tools are deployed remain essential for clients’ success. Technology allows agency partners to be more agile and well-informed, with access to extensive data and inputs. Precise audience segmentation based on behaviour and the ability to target them effectively across platforms are critical for successful campaigns. Additionally, planning cycles have become more nuanced, shifting from annual plans to shorter cycles.
Do you think the advent of generative AI will have an effect on the hiring of capable talent?
Generative AI is an exciting new addition that offers innovative ways to identify, map, train, and foster talent. We view it as an opportunity to enhance existing approaches in these areas. To make the most of generative AI, we must adopt it systematically rather than as a one-time solution. We are currently developing globally aligned guidelines to ensure its effective utilisation.
Recent years have seen a shift from print/traditional media to digital advertising. What trends do you expect to see in the near future?
The shift from print/traditional media to digital advertising has been significant. However, the key to success lies in understanding that content remains king and that consumer interest is paramount. Communication partners must identify the role that each piece plays in crafting comprehensive communication solutions for clients. Even within the digital landscape, traditional media will evolve, and niche platforms will grow, offering targeted cohorts to engage with. As technology continues to reshape consumption patterns, we can expect new platforms to emerge, altering consumer behaviour. As a partner to our clients, our commitment is to stay ahead of this curve.
How do you see the media agency evolving in the future considering its clients’ changing needs and its efforts to appeal to Gen Z?
Media agencies are evolving to become audience and business communication partners for clients, utilising the right tools and methods to identify and reach the appropriate audiences in the most efficient and effective ways. Rather than being mere placement agents of the past, they are now solution crafters. In today’s rapidly changing scenario, where audiences like Gen Z seamlessly transition between offline and online worlds, agencies must be capable of creating and executing plans that ensure a seamless consumer journey.
What are your agency’s plans for this year? How do you expect to nurture your existing relationships?
In line with our “Futureproof” promise, we aim to establish long-term partnerships with clients, equipping them with the tools they need for sustainable growth. In this year of cautious optimism, our focus is two-fold. Firstly, to consolidate and strengthen our existing client partnerships, leveraging media as a growth tool while exploring new engagement and value opportunities through content, CRM, and data. Secondly, we will focus on enhancing our internal capabilities by building in-house resources and tools, enabling us to leverage the media marketplace more effectively.