Mumbai: On the sidelines of Goafest 2023, Indiantelevision.com caught up with Aditi Mishra, CEO of Lodestar UM. She spoke to us about her journey in Lodestar UM, spending on IPL, and more.
Edited excerpts
On her journey at Lodestar UM
Yes, I have been associated with Lodestar for a significant period. Previously, as the CSO, I held a C-suite position with a focused role in strategy, knowledge, and learning training. However, taking on the role of CEO has presented new challenges. Leading the organization's overall operations, including people and finances, requires a broader perspective. It was a mental shift for me, as I had to transition from a deep focus on a specific area to a wider scope. Initially, I had to rewire my thinking to adjust to this change.
I aspire to fulfil the responsibilities entrusted to me as CEO and contribute to the transformative phase we are experiencing. Enabling this transformation for our agency, the industry, and our clients is a measure of success for me. We face challenges in the current environment, as discussed during the panel, including talent acquisition and remuneration. As CEO, I am constantly contemplating how we can keep our agency and the industry vibrant, agile, and growing amidst these challenges.
On the allocation of funds for IPL
Funds were allocated for both linear and digital platforms during IPL. However, clients made distinct choices based on their preferences. Some opted for television, including standard definition (SD) or high definition (HD), while others focused solely on digital. Detailed discussions were held with clients to align their strategies with their desired metrics. Consequently, the overall expenditure on IPL was lower compared to previous years.
There are two main reasons for this reduction. Firstly, the economic impact affected certain sectors, such as the tech sector, including fintech and ed-tech, resulting in a decreased investment flow. Consequently, some clients in these sectors withdrew their IPL advertising plans. Additionally, some clients, regardless of their sector, felt the expenses associated with IPL were excessive and decided to hold their campaigns until they assessed the economic situation.
It's worth noting that IPL introduced packages this year, allowing smaller clients to participate. The division between digital and television advertising had a significant impact. However, even after this division, clients still had to make choices due to the challenging economic landscape. Overall, while IPL performed well as a sporting event, the advertising landscape witnessed a more level playing field, rather than dominance by regular players. This has presented some challenges for us as an agency.
On the robustness of ADEX
It is challenging to provide a definitive answer to the question of ADEX's robustness due to varying projections. However, based on current observations, it seems that we can expect more stabilization of growth rather than an exceptionally remarkable year. The festive season will still witness significant spending, as indicated by ongoing discussions with select clients and industry players. Barring any unexpected negative impact from the monsoon season, which seems unlikely based on current information, the festive season is likely to be similar to last year—good but not extraordinary. That is where we anticipate standing out. Moreover, digital investments will continue to grow, while other mediums such as print are making a comeback in specific categories like BFSI and auto, showcasing notable resilience.
On the new buzzword Generative AI
I was an early adopter of ChatGPT, signing up for an account just ten days after its startup. Since then, the journey has been intriguing, considering the capabilities of ChatGPT and the various other AI solutions being generated within the next three months.
When considering how Lodestar perceives the use of Generative AI, two aspects come to mind: internal utilization within our agency and industry and external application for clients. Regarding internal use, as a global agency and a Microsoft company, we have established global guidelines to ensure compliance with the use of generated AI for automation and customization of our internal responses. Turning to the external realm, if there is animation or the Metaverse, for example, among the 20 possible client and brand solutions, our approach is currently threefold. First, we emphasize the importance of staying updated on what is technologically feasible, conducting internal audit sessions every two weeks to share new developments with select team members.
Second, we foster close collaborations with our tech partners, including major players like Google and Meta, as well as emerging partners who can introduce us to their solutions. Finally, we engage in discussions with clients to establish an innovation budget, leveraging the insights from our annual report on emerging technologies and their successful application across the globe. This comprehensive approach ensures our teams are well-informed and equipped to initiate relevant conversations with clients, ultimately creating tailored solutions based on their interests and willingness to invest and experiment.
On the use of Metaverse
One of the challenges with buzzwords like the Metaverse is that they lack clear definitions. As future-proof partners for our clients, it is our responsibility to ensure that our recommendations and consultations are robust. While there may be scepticism surrounding the Metaverse compared to a year ago, it does not mean the concept is dead. Instead, there will likely be different forms and applications of the Metaverse. This calls for thoughtful consideration and exploration. Not every shiny toy is extraordinary, but one must engage with it to determine its value. Just because something is a buzzword does not automatically make it suitable for a client. Therefore, we encourage our teams to exercise discernment in understanding the relevance and potential of the Metaverse.
On gaming and esports
The gaming market in India predominantly focuses on mobile gaming rather than console gaming, although there is a growing interest in consoles. However, the console market in India is still relatively small compared to other markets. On the other hand, e-gaming or eSports has experienced substantial growth over the past two years.
In fact, during a recent conversation with one of my clients, we discussed the emerging trend of people gathering to watch games together, even if they are not actively participating. These interesting nuances are revealed through research and connecting with people. Understanding that Gen Z individuals often prefer watching games rather than playing them, we must be mindful of the content we present. This raises questions about incorporating in-game ads or creating engaging experiences for friends to come together and enjoy. This is an area where we are actively involved.
