Realize the need to disrupt ourselves: Publicis CEO Anupriya Acharya

 

The last time we met, the world was just opening up after the pandemic and funding winter had gripped the startup industry. Two years since, how is the health of India’s economy and the M&E industry?

We observed a demand surge across shopping, travel, and entertainment, which marked a strong global recovery, although the timing varied worldwide. However, this recovery gradually plateaued as societies adapted to the post-pandemic reality, and the initial pandemic-driven boost in viewership, digital consumption, and e-commerce tapered off over the last 12-18 months.

The transformation in consumer behaviour, particularly in digital adoption, led to a greater emphasis on technology in corporations as they raced to hire and expand relevant talent. As the international market plateaued and the post-pandemic rebound subsided, combined with global uncertainty and economic headwinds, we witnessed a correction in the tech sectors and a cooling off in the Unicorn space. A funding winter set in, which has subsequently impacted Adex (advertising expenditure).

The good news is that for all global headwinds and uncertainty, India has been a bright spot. While not totally insulated from it, the market has maintained strong growth momentum. We see this trend continuing in 2024. As we speak, we have seen some massive increase in client spending for the double dhamaka of World Cup cricket and festive season.

How has the year been for Publicis in India? What will be the key focus areas going forward?

One, for context, 2022 was an exceptional year for us. We experienced significant growth across fronts, from new business acquisitions to growth with existing clients, industry recognition, and employee satisfaction. In 2023, despite some clear challenges, we continued to achieve strong double-digit growth, building on the momentum of 2022. We have secured many new businesses, including P&G Digital Media, AU Bank, Ikea, Audi, ABI, Birla Paints, Mondelez Productions, and HDFC Ergo, among others. We expanded our relationships with key existing clients such as Nestlé, Hero, HDFC Bank, Airtel, Haelon, PepsiCo, and Axis Bank.

We’ve enhanced our services across various domains including commerce, creative tech, performance marketing, content, production, experiential, and shopper marketing, all of which contributed to significant growth for our services across clients. Our focus is on being client-centric, future-ready with the right capabilities, embracing AI for operational enhancements, delivering scalable solutions to our clients and support their marketing transformation.

How is increasing use of AI and generative AI in media planning and buying going to change your world?

AI is here to stay and will have a profound impact on knowledge workers. It’s an advantage that depends on how we harness and utilize it. We’ve applied Gen AI to solve business and campaign challenges in innovative ways, such as the recent projects Say it with Oreo, Puma Dive, and PepsiCo Smart Farms. Moreover, we realise the need to disrupt ourselves, which is why we’ve initiated a culture of innovation within the company, encouraging our teams to embrace and adapt to AI, and foster innovation in a fun and engaging manner. One such initiative was Hack To The Future, a company-wide contest to promote proactive disruption and innovation in response to the rapidly evolving knowledge economy influenced by AI. This contest encompassed a three-hour, in-person event with the top 120 talents across all brands, practices and functions. Over 130 entries were submitted, and after a 5-hour jury session, 13 entries made it to the final shortlist. In the finale, these 13 teams presented their projects in a SharkTank-like event to the global leadership team. Five winning entries are now being incubated and financially supported, in partnership with Microsoft’s enterprise-level AI offerings. This approach demonstrates our commitment to AI adoption, not just at the surface level but throughout the organization to promote a culture of innovation.

What is your view on the future of traditional media platforms such as TV, print, and radio in the ever-expanding digital landscape?

The future of media is intact, but its shape might keep changing. Each one evolves with digitalisation. The most change expected is on the aligning of key players more than the media or eyeball shifts. We have a major consolidation happening in media including broadcasting. There was a time when we used to keep talking of fragmentation, but now it’s the reverse. We will have fewer and more powerful players in digital area, mirroring broadcasting. This makes for an interesting shift.

Firms are considering consolidating networks, streamlining structures, and a unifying P&L. What is your view on this trend?

For us, Power of One focuses on providing clients seamless access to best-in-class services across full consumer journeys, incorporating data, creativity, media, and technology. This client-centric and modular approach combines specialization and simplification, fostering agility in delivering solutions to clients.

This is so because there is not a one-size-fits-all approach to organizational structures. The choice between integration and specialization depends on specific business needs and contexts. At times, combining agencies may result in a leaner and more integrated way of working, enhancing efficiency. However, for cultivating specialized skills, a specialized structure might be required. Specialized agencies serve as experts in their respective fields and cater to specific, unique challenges. It all depends on the business requirements and context. The key to success is effective execution.

With growing concerns about data privacy and regulations, what challenges do you foresee for clients in ensuring compliance while still delivering personalized and effective advertising?

Data privacy is closely linked to consumer loyalty, and the two go hand in hand. Publicis prioritizes data privacy, and the future will increasingly rely on opt-in mechanisms. We assist clients in developing consented first-party customer data strategies that protect consumer interests. First-party relationships are crucial for personalization efforts, especially as third-party cookies phase out. We work toward delivering personalized and effective advertising while respecting consumer interests and maintaining privacy. Marketers at different data maturity levels are guided to create suitable strategies for compliance and achieving long-term objectives. Solutions like data clean rooms, cohort creation, D2C initiatives, and AI-driven operations are some ways we ensure data privacy while delivering effective advertising.

What measures have been taken to attract, develop, and retain top talent?

Attracting, developing, and retaining top talent is an ongoing process. Our focus on growth, combined with our unique Po1 model, which offers access to a wide range of specialized skills, is a significant attraction for talent in the market. We also conduct regular Pulse surveys and create clear workstreams based on feedback. Our continuous investment in learning and development is based on clear feedback from our talent on their learning requirements. Certification plays a crucial role in our approach to learning, fostering an active learning culture. We promote innovation and adopt a performance-driven culture, along with a focus on wellness. Our custom-built platform, MARCEL, plays a crucial role in providing a comprehensive and personalized experience for our people, covering aspects of career and life stages.

With the increased reliance on data and analytics, how has decision-making evolved within your agency, and what benefits and challenges have emerged from this shift?

In response to the changing landscape, our agency has made significant investments in bringing in top resources, proprietary tools, and platforms to address clients’ evolving needs. Our focus on data and analytics collaboration techniques, such as data clean rooms, has improved targeting, matching, modeling, enrichment, measurement, and analytics. We have also developed generative AI tools, contributing to overcoming challenges. Automation processes have been streamlined across various functions, improving the efficiency and effectiveness of decision-making. Organizational restructuring has been implemented to empower current resources and optimize decision-making processes effectively.