The Transformative Impact of AI, Short-Form Videos, and Business Messaging on Modern Agencies
In today’s fast-paced digital world, the operation of agencies is undergoing a profound transformation. This shift is fueled by the rise of Artificial Intelligence (AI), the popularity of short-form video content, and the increasing use of business messaging. These technological advancements and evolving consumer habits are reshaping the skills that agencies need, compelling them to upskill urgently and prepare for the future. This evolution is crucial for agencies to not only survive but thrive in an ever-competitive market.
As Gaurav Jeet Singh, Director of Agency and VC Partnerships for Meta in India, explains, the agency ecosystem is pivotal to India’s digital growth. It is currently experiencing a significant transition. The digital landscape is evolving, driven by the surge of AI, the popularity of short-form video formats like Reels, and the widespread adoption of business messaging. Agencies, irrespective of size, must embrace new skills to grow. Automation technologies enable agencies to scale operations more efficiently. Meanwhile, engaging short-form content is revolutionizing the creative landscape, and messaging platforms are transforming how brands and consumers communicate. Meta is collaborating with agencies to facilitate their transformation, helping them become future-ready and capitalize on new business opportunities.
The Meta Marketing Summit Agency Edition, held in Mumbai and Gurgaon, gathered over 350 senior agency partners. The event focused on how agencies can shape their future by embracing these technological advancements.
AI Supercharging Growth
Artificial Intelligence is rapidly becoming an essential tool for agencies. By adopting AI and Generative AI tools, agencies can help businesses target audiences more precisely, experiment and learn quickly, and scale creative output more efficiently. A prime example is Sokrati India, which utilized Meta’s Advantage+ Shopping Campaigns (A+SC) to drive growth for various accounts. According to Abhirup Datta, CEO of Sokrati and Performance Solutions, the deployment of A+SC has led to increased adoption of the product and a significant rise in spending. AI tools like the Advantage+ suite are not only transforming agency operations but also accelerating growth and conversions for businesses across India.
Building Next-Generation Brands
India is at the forefront of creating Reels, with the highest number of Reels produced globally each week. It also boasts the largest community of Instagram creators worldwide. This scenario presents immense opportunities for brands and agencies. Agencies are transitioning from being mere media or creative planners to becoming comprehensive consultants for brands. As Aakriti Sharma, Client Lead at Wavemaker, notes, Reels have become a crucial part of nearly every brand’s marketing strategy. For instance, India Gate Basmati Rice implemented a strategy involving over 20 regional creators and mega celebrities to showcase its new packaging through Partnership Ads. This approach resulted in a 4.5-point increase in top-of-mind awareness, surpassing the APAC benchmark of 0.9 points.
Similarly, as consumer consumption patterns change, brand-building strategies are evolving. Milton collaborated with Meta Moment Maker for their Diwali campaign, achieving 31 million incremental reaches with multilingual video assets. This campaign led to a 110% increase in conversations, an 84% rise in conversions, and a 31% reduction in cost per reach, as highlighted by Sadhvi Dhawan, VP at Blink Digital.
Business Messaging
The shift towards messaging is shaping the next phase of digital transformation. Business messaging, particularly through platforms like WhatsApp, is driving meaningful business outcomes. WhatsApp Cloud API currently supports 70,000 Indian businesses monthly, and this number is growing swiftly. According to Iti Kaul, Head of Digital at OMD India, performance media is increasingly tied to business outcomes. In a competitive market, it’s vital for advertisers to test, adopt, and scale new technologies and formats to maximize ROI. Business messaging on Meta has proven to be effective in driving key performance indicators (KPIs), delivering high-quality leads at efficient costs. With WhatsApp’s widespread adoption across India, including Tier-2 and Tier-3 markets, it serves as a seamless platform for exploring new business opportunities. Click-to-WhatsApp and Messenger Ads effectively convert Facebook and Instagram users into potential customers, driving sales and other key business outcomes.
Building Bespoke Tech Solutions
Agencies are also developing customized tech solutions to enhance their growth potential. For example, Meta partnered with AdYogi to create a product performance management platform for e-commerce services using profitable catalog ads. Anshuk Aggarwal, Co-Founder of AdYogi, shares insights into their collaboration with Meta, which led to the development of a platform that scales e-commerce revenue through profitable catalog ads. The platform, BigAtom.ai, enhances product feeds with videos, driving higher return on ad spend (ROAS) for catalog ads on Meta. By leveraging AI, BigAtom.ai helps brands identify the most profitable products and allocate budgets effectively on Meta, resulting in increased sales and profitability. Furthermore, BigAtom.ai enhances catalog performance by automatically removing broken or low-performing products, leading to 8%-10% ad budget savings.
In conclusion, the agency landscape in India is undergoing a significant transformation, driven by advancements in AI, short-form video content, and business messaging. These technologies are redefining how agencies operate, enabling them to grow and adapt to the evolving digital landscape. By embracing these changes, agencies can position themselves as forward-thinking partners for businesses, ready to seize new opportunities and drive growth in the digital age.
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