Most of my ad agency friends are worried these days.
A few years ago, we thought Covid as being the game changer. Now, we realize that Covid was nothing compared to the way AI is disrupting the advertising industry. To add to this disruption is the continued fragmentation in the way people consume media.
Such is the shift in media dynamics ad agencies are at a stage where there is an urgent need to cover multiple platforms to ensure that the diverse touchpoints of the target audience are covered. Resources are getting scattered and in changing market situations, clients are not in a position to provide enhanced budgets.
Unrelenting pressure on ad spends
With the pressure from clients to derive more bang for each dirham they spend, the changes ushered in are unfamiliar and challenging.
Gone are the days spent brainstorming for the big idea. Today, AI creates communication solutions in a jiffy, and agencies have moved from being creative led solutions to tech-led answers. This shift is a cause for concern, especially when agencies thrived on account of their creative ability to develop path-breaking communication that helped create distinct brand identities. ‘Chief Creative Officers’ are getting replaced by Chief Technology Officers and this might surely hurt the interests of the brands in the long run.
We notice the problem of similar looking AI generated content for different brands. Also, when it comes to many local language campaigns, AI is not able to understand the nuances of cultures. The noise around Generative AI is turning into a cacophony. What started as an exception has become the norm.
It is time agencies put more focus back to their core strength, which is story-telling built on a foundation of strong strategy. Consumers are looking for engagements that are genuine. Brand custodians should understand that consumers want to move away from marketing tactics that are superficial in nature.
Playing to ad agencies’ strengths
This is where agencies come in. Agencies should take all necessary steps to ensure that the power of technology is rightly harnessed to provide relevant solutions. Agencies need to align their strengths and evolve their outputs with a strong customer-centric approach.
Technology should be adapted to reshape the ways in which agencies churn out communication pieces and these pieces should result in greater audience engagement.
Data should be understood to generate insights that will help to get a deeper understanding of consumer likes and dislikes.
It is important to remember that brands hire agencies since they believe that agencies will be able to bring a difference. The expertise of agencies will help to create path-breaking communication that align with the brand’s values. When human capabilities get enhanced by the potential of AI, the role of agencies get transformed…
