Do creative agencies need a reboot?

"Media agencies are five years ahead than creative agencies," claims one of the tallest industry leaders Daryl Lee, Global CEO of IPG Mediabrands. While Lee, who leads one of the biggest media agencies, has every reason to claim so, we at e4m decided to take the conversation forward and connect with industry veterans to understand if the same is true for the Indian market as well. 

Are creative agencies actually losing their relevance to content partners working with media agencies to provide 360-degree solutions to the clients? Is it time for the creative agencies to consider expanding their roles to keep themselves relevant in this fast-changing marketing world?

Speaking at e4m Conclave on December 13, Lee suggested it's time for creative and media agencies to redefine their roles. “These are not media and creative agencies but are ‘strategic agencies’ and ‘execution agencies’. Strategic agencies look at consumer strategies within and outside their systems and formulate one for execution. They have a lot of data along with unlimited opportunities to devise strategies for execution. Creative agencies, with available media, do just one thing that they are supposed to do,” he said.

Experts agree that we live in a world where data powers everything. And the same has had a far-reaching impact on how agencies and holding companies operate and conduct business.

Armed with data, analytics, market and consumer strategies, media agencies are increasingly having an upper hand over their creative peers. 

If you go by the latest industry trends, convergence of media and creative agencies has already begun. For instance, MullenLowe Lintas, which is part of IPG group, hyper-bundled two of its media agencies, PointNine Lintas and Golin, with its creative arm in 2019 and 2020 respectively. 

The group, which has been known for its award-winning ad campaigns for decades, has forayed into marketing now.

“Businesses are getting disturbed with the expansion of digital platforms. What we are focusing on is how to shift our focus from just communication to now marketing. We have stopped thinking of ourselves as advertisers only. In a revolution and a disruption as big as digital, we can’t afford to be just advertisers anymore. We are looking at marketing and business as well and providing complete solutions to brands,” Amer Jaleel, Group CCO & Chairman of MullenLowe Lintas, told e4m recently. 

Meanwhile, some believe that going forward, media agencies may equip themselves enough to make ads. Two recent innovations by Wavemaker -- Netflix series Money Heist's innovative print ad campaign for Hindustan Times and the popular Diwali campaign ‘Not Just A Cadbury Ad’ with actor Shah Rukh Khan-- are often quoted as potential examples to prove the argument.

Sandeep Goyal, MD of Rediffusion, says, “The problem is not with the creative agencies but their leaders who don’t really fully understand the creative realities of the new, contemporary world around us.”

Whoever has the consumer analytics is calling the shots these days. Perhaps that's why consultancy brands like Accenture and McKenzie are also buying creative agencies. 

Accenture recently acquired King James group and Droga5, two very innovative and influential creative agencies. Both have been made part of ‘Accenture Interactive’, boosting its capabilities to design, build and run customer experiences that grow brands and businesses. 

Creativity has no boundaries

Amit Wadhwa, CEO India, dentsu Creative, disagrees with the suggestions made by Daryl Lee. Wadhwa says, “This is a debate that I have heard before and here we are still creating some amazing work for our clients/ brands.”

Wadhwa points out that creativity and ideas will continue to rule the ad world. “The best part about creativity is that the idea can come from anywhere, which is not a new concept and has been there for ages. I think creativity requires a strong brand understanding, knowledge, long-term sustainable thinking & execution on the brand, and for that reason, creative agencies are going nowhere,” Wadhwa says. 

He insists the rise of the digital medium only accentuates the possibilities of creativity, and I see no reason to believe the above statement to be true.

Nitin Karkare, Vice Chairman, FCB Ulka Advertising, echoes the sentiments. 

“Anybody can make an ad but not everybody can make an ad that works. Because to do so is not just about data and analytics. But also about a deep, almost visceral understanding of the consumer and the skill to craft communication that changes attitude and behaviour. The creative agencies have some unique advantages in this because of the culture, people, and processes that have been refined and honed over time,” Karkare opines. 

He notes, “Creative agencies will lose freedom and relevance only if they allow that to happen. Clients always want their creative agencies to deliver ‘work that works’. To do so, the creative agencies need to take the lead in truly understanding the clients’ business, their challenges, and opportunities and produce work that makes a positive impact on their business. If we abdicate this responsibility to any other partner, we have only ourselves to blame.”

Goyal, however, adds that while Lee may well be right, he would disagree with him on parts. “I have returned to advertising (the creative business) after 10 years. And my feeling is that creative businesses can be pivoted very quickly to become digital savvy if you have the vision and the commitment.” 

The way forward

Creative agency executives are devising ways to stay afloat. Upskilling themselves with data analytics and marketing tools is one such strategy. Karkare advises that creative leaders must become their clients’ “go-to business partners”. 

“They need to consistently engage with the client's C-suite and offer creative solutions that move the needle on their business. Only if we do so will we command respect. Respect will have a positive impact on the sentiments of the creative heads,” says Karkare. 

Wadhwa urges his peers to strengthen their data visualization skills. 

“I am a firm believer that we need to make data and analytics the best friend for creativity. When we have deeper knowledge and understanding of the consumer, the kind of content they like/dislike, their reactions etc., it will only help us get better,” says Wadhwa. 

A senior executive says, “Media agencies are evolving at a very fast pace but to say they will take over creative agencies is ambitious. Creative agencies have a strong role to play and they are there to stay.”