AI tools can't replace human touch, clients still need agency expertise: Vineet Bajpai, Magnon Group

As the festive season approaches, brands significantly ramp up their e-commerce advertising expenditure, often doubling their usual spending. They can observe up to a 7x growth in sales during these peak periods. With this, brands find themselves at a crucial point. Along with the purchasing decisions, its the emotional connections with consumers that can define the success of a campaign. According to Vineet Bajpai, Founder & CEO of Magnon Group, this period represents more than just a sales spike. 

It’s an opportunity for brands to make lasting impressions by adopting an omnichannel approach to their advertising strategies. With e-commerce advertising expenditure doubling during the period, Bajpai emphasises the importance of measuring Return on Ad Spend (ROAS). He notes that during major sale events, ROAS typically surges due to heightened consumer intent. However, reaching consumers requires more than just increased spending. According to Bajpai, it demands innovation, precision targeting, and a deep understanding of the consumer journey.

To stand out during the festive season, Bajpai believes that brands should consider integrating innovative technologies like augmented reality (AR) for virtual try-ons, personalised recommendations using AI and interactive content to engage consumers. 

However, he notes that while AI excels at processing vast amounts of data and identifying patterns, it lacks the nuanced understanding and creativity inherent in human cognition. To tap into the full potential of human emotions for crafting campaigns - a skill needed for the vibrant festive season - clients would need an agency’s expertise. 

Understanding the nuances of storytelling during the festive season and tapping into consumer emotions is crucial for any brand. Vineet Bajpai’s agency, Magnon Group, has been one of the players that helps brands maximise their potential during critical periods like the festive season. With three agencies under its roster - Magnon Designory, Magnon eg+, and Magnon Sancus, it has 400+ professionals who provide a holistic approach that integrates creativity, strategic planning, and cutting-edge digital solutions. Together, the agency keeps up with evolving trends and tools that can help shape its trajectory. 

At the heart is Bajpai’s belief that leadership demands evolution. Along with this is the agency’s people and the power of collective teamwork and creativity. 

In an interaction with us and part of the jury panel for Social Samosa's 30 Under 30, Vineet Bajpai shares his journey of building the Magnon Group from the ground up into one of the largest digital agencies in India, how his personal experiences and expertise have shaped the agency, the trends he foresees during the festive season, marrying digital advertising with technology for effective communication, the do's and don’ts of digital advertising and more. 

Edited Excerpts:

Vineet, you have built the Magnon Group from the ground up into one of the largest digital agencies in India. What personal experiences shaped you as a leader during this journey? How have you evolved as a CEO? What values have remained consistent, and what has changed?

Having built Magnon from the ground up into one of the largest agency groups in India, I can attribute much of my growth and leadership approach to my personal experiences.

Hailing from a middle-class family and living in a city like Delhi, with all its commercial pomp and show, imbued in me a deep ambition for material success. No doubt that inherent hunger for growth has manifested itself in the way I lead my companies, where the quest for progress and profitability is a way of life. A wonderful by-product of that fervour has been the cutting-edge, ever-evolving value we deliver to our global and Indian clients and the employment opportunities we have been able to generate for hundreds of people. Today, we contribute heavily to CSR initiatives and invest continuously toward employee growth and welfare. All of this has been made possible by our laser-sharp focus on creating value continuously.

One core value that remains unwavering is the emphasis on collective teamwork. I believe that a collaborative management culture enhances both human and organisational values. It allows us to balance client needs, business scaling, efficient management, comprehensive communication, digital innovation, mental well-being, and much more.

However, leadership also demands evolution. Inculcating new values shapes our behaviour and improves our interactions with those around us. One such value I have embraced is an intrapreneurial mindset. This approach encourages everyone within the organisation to share leadership responsibilities and develop an entrepreneurial outlook. By fostering this mindset, we empower our coworkers and employees to take ownership of their work and nurture leadership qualities within themselves.

Magnon Group has grown significantly under your leadership. What has been the key to maintaining that momentum, especially being part of the Omnicom network?

Today, we are proud to be among the largest advertising and digital groups in the sub-continent, and our growth trajectory continues to ascend. We have three agencies - Magnon Designory, Magnon eg+ and Magnon Sancus - and a team of 400+ professionals pan-India. We work with some of the Fortune Global 500 brands.

Being part of Omnicom, and eg+ and designory networks, has given us a significant advantage. It has given us access to sophisticated knowledge capital in the advertising, digital, production, media and linguistics sector.

The key to maintaining our momentum has been our commitment to leveraging content marketing, advertising, digital production, analytics and reporting, cultural integration, and language services to offer marketing solutions to our clients. 

Our proactive approach to onboarding new clients and expanding services for existing clients has enabled us to evolve into a 360-degree agency. This strategy has driven our growth at a CAGR of over 70% for 8 consecutive years.

We have taken a client-centric approach by developing in-house teams and ‘creative labs’ focused on key clients. Further, thought leadership initiatives like METAL (Magnon Ecommerce Transition & Assessment Lab) and MILE (Magon Index for Language Experience) have driven our operational excellence. Additionally, we place immense focus on the training and development of our teams.

Our growth can be attributed to a combination of streamlined processes, smooth workflow, quality assurance, and unwavering client commitment.

Given Magnon’s positioning as a creative-production and marketing solutions outsourcing lab, how do you foresee the role of outsourcing evolving in the advertising industry?

Yes, absolutely. As we also work as an offshore hub for our network agencies globally, I feel outsourcing has become a valuable resource in the advertising industry. 

Outsourcing brings several advantages to the table, including specialisation, cost optimisation, and increased return on investment. In today's fast-paced market, the demand for rapid, scalable, and cost-effective content has surged. Brands need a constant stream of engaging content to remain relevant and capture their audiences’ attention.

Outsourcing is driven by three crucial factors: cost, time, and quality. It allows brands to produce a high volume of quality content at a lower price without compromising deadlines. This enables companies to focus on their core business activities while maintaining control over speed, volume, and marketing costs.

Recognising this trend early, we set up dedicated in-house teams tailored to meet the specific needs of our clients. These teams operate as internal agencies supported by a network of experienced subject-matter experts. This hybrid approach offers brands the benefits of an in-house team - such as direct communication and alignment with brand goals - while also ensuring access to the latest industry knowledge and expertise.

In essence, outsourcing provides brands with the best of both worlds: the specialised skills of external experts combined with the seamless integration and quality controls of an internal team. As the advertising landscape continues to evolve, outsourcing will play an increasingly important role in helping brands achieve agility, efficiency, and superior campaign outcomes.

How do you foresee the festive season shaping the advertising industry this year? How is Magnon Group helping brands achieve their goals during the season?

The festive season invariably brings out the storytellers in us, and what better way to captivate a customer than through compelling narratives? Historically, we've witnessed leading brands leveraging powerful storytelling in their advertisements to capture consumer attention and foster a sense of connection. These narratives not only engage audiences but also encourage them to share their own stories and create communal bonds.

However, the art of storytelling has evolved with technological advancements, opening new avenues for content delivery and audience engagement. With the advent of innovative automation across various channels and experiential media, the advertising landscape is witnessing unprecedented opportunities.

At Magnon, we assist brands in crafting comprehensive, inclusive, and diverse campaigns that resonate deeply with their target audience. For brands seeking a vernacular approach, we develop strategies that cater to different linguistic demographics, ensuring the campaign's message is both culturally relevant and impactful.

Moreover, we emphasise the importance of performance marketing, helping brands identify what resonates best with their audience. 

Performance marketing stands out because it enables brands to continue their paid search efforts even with evolving privacy norms. Our data-driven approach ensures that we pinpoint and amplify the most effective strategies for our clients.

Understanding the nuances of storytelling during the festive season and tapping into consumer emotions is crucial for any brand. At the core of advertising lies creativity and coupling that with a well-thought-out strategy is what drives a successful campaign. Our agency focuses on blending creative storytelling with strategic planning to help brands achieve their festive season goals and beyond.

How do you balance creative freedom with client expectations, particularly when it comes to budget and time constraints?

At Magnon, building deep, trusting relationships with our clients is at the heart of our success. Many of our clients have been with us for years, often collaborating with the same dedicated team. This enduring trust is rooted in our ability to strike a careful balance between meeting client expectations and maintaining creative freedom.

A key element of this balance is our commitment to personalising marketing solutions that empower our clients to shine. Over the years, we’ve curated a portfolio that highlights our dedication and marketing fervour. Whether we're forging a new relationship or enhancing rapport with an existing client, our fundamental focus is on delivering solutions that align with their unique vision.

Rather than resorting to a one-size-fits-all approach, we delve deep into each client's needs, aspirations, and challenges. This thorough understanding gives us the latitude to exercise creative freedom. By studying consumer behaviour, testing innovative strategies, and adapting to the ever-changing market we craft campaigns that resonate on a deeper level. 

Balancing creativity with budget and time constraints requires meticulous planning and transparent communication. Through regular consultations and updates, we ensure our clients are continually informed and involved in the decision-making process. This collaborative approach not only fosters trust but also allows us to adjust strategies in real-time, maximising both creativity and efficiency.

What are some of the trends that are shaping the trajectory of digital advertising and media this festive season? How should brands innovate during such periods to stand out?

As the festive season approaches, brands significantly ramp up their e-commerce advertising expenditure, often doubling their usual spending. This period is crucial for connecting with consumers on an emotional level, making it essential for brands to adopt an omnichannel advertising approach. Such a strategy ensures that brands can reach customers at various stages of their purchasing journey, enhancing overall effectiveness.

One key metric to focus on during this period is Return on Ad Spend (ROAS). During major sale events, ROAS typically increases due to higher traffic and consumer intent. 

Therefore, brands should narrow down their target audience, craft compelling ad copies, and rewrite their product description creatively and in multiple languages. Leveraging cognitive biases and maintaining positive reviews can also significantly impact consumer decisions.

While ad rates do surge during festive seasons, the potential returns justify the investment. Brands can see up to a 7x growth in sales during these peak periods. With the increasing purchasing power in Tier-II and Tier-III cities, it’s a golden opportunity for brands to expand their market presence. The fluctuation in ad rates, driven by demand and supply dynamics, underscores the importance of strategic spending to achieve a favourable ROI.

To stand out, brands should also consider integrating innovative technologies like augmented reality (AR) for virtual try-ons, personalised recommendations using AI, and interactive content to engage consumers. Additionally, leveraging data analytics for real-time decision-making allows for more agile and responsive campaigns.

Reports suggest that digital ad spending in India is set to increase by 15.9%, reaching ₹580 billion in 2024 during the festive season. How do you see the role of AI and data-driven strategies evolving for brands looking to capture the attention of increasingly digital-savvy consumers during the festive season?

AI has brought breakthrough changes in the advertising industry, which we can see in the form of projected increase in digital ad spending in India. This growing trend underscores the important role of AI and data-driven strategies in engaging digitally-savvy consumers, as well as helping brands manage the digital ad spending. AI also enables brands to deliver highly personalised experiences, using predictive analytics to forecast buying trends and consumption behaviour, thereby maximising ROI.

Advanced AI algorithms facilitate real-time bidding on ad spaces, ensuring that the right message reaches the right audience at precisely the right moment. This capability is crucial for brands aiming to elevate their game during the festive season. 

Furthermore, AI allows for continuous monitoring and optimisation of campaigns, enhancing user experience and engagement.

Success in this digital-savvy market hinges on not just improving user experience but also on precise audience segmentation. Understanding the interests and behaviours of different demographics allows brands to tailor content specifically for each platform. This higher degree of personalisation, backed by data-driven insights, enhances ad performance and overall results.

Integrating AI and data-driven strategies offers brands the tools to navigate the complexities of the festive season advertising landscape efficiently. By leveraging these technologies, brands can achieve superior personalisation, optimise their ad spend, and drive exceptional results.

How can brands strike a balance between traditional and digital media this festive season? What key metrics should they focus on to measure the success of these campaigns and what are some of the mistakes they should avoid?

Balancing traditional and digital media is crucial for a successful festive campaign. Brands can achieve this by combining compelling storytelling with advanced technology right from the start, which can revolutionise their impact during big festive days. 

Performance marketing plays a significant role as it allows brands to analyse lessons from past years and implement refined tactics for the current season. When measuring success, it’s important to focus on key metrics like reach and engagement, conversion rates, ROAS (Return on Ad Spend), and customer lifetime value. These metrics help in assessing how effectively your campaign is performing and the value it’s generating. 

One common mistake to avoid is ignoring audience segmentation - tailoring messages for different demographics is vital for relevance. Also, understand the nuances of various platforms to know what type of content resonates best. 

Pay close attention to the customer journey by mapping out pain points and preferences to create highly personalised content. By leveraging both traditional techniques and digital innovation, while avoiding common pitfalls, brands can ensure their festive campaigns are not only engaging but also highly effective.

As AI continues to reshape content creation, do you foresee a future where staff augmentation models AI-driven talent for specific tasks, and how would that affect the agency-client dynamic?

At the core, AI streamlines operations, enhances targeting precision, and optimises campaign performance. From creative ideation to audience segmentation and media buying, AI augments every facet of advertising, delivering unparalleled insights and efficiency.

However, it's crucial to recognise that while AI excels at processing vast amounts of data and identifying patterns, it lacks the nuanced understanding and creativity inherent in human cognition. 

AI tools cannot replace the human touch in crafting compelling narratives or understanding the intricacies of human emotion. And to tap into the full potential of this, clients would need an agency’s expertise. 

Moreover, AI tools require skilled human operators to interpret results, make strategic decisions, and refine algorithms. AI is indeed a powerful ally in the advertising landscape, but its true potential is realised in synergy with human expertise. The human element remains indispensable in steering AI tools effectively, ensuring they align with brand values, resonate with audiences, and drive meaningful engagement. It is this fusion of AI's capabilities with human ingenuity that propels advertising initiatives to new heights of success.

With brands increasingly concerned about data security, how is Magnon adapting to ensure that client data remains protected while utilising advanced technologies like AI and machine learning?

While data security is not something new for brands, the advent of AI has somewhat created a worry, or sometimes panic, in the minds of brands. As the usage of AI grows in the advertising and marketing industry, so do the challenges. With growing customer concerns, brands have tight data security on top of their mind. 

As we know, data is one of the most important things in this industry, the need for strong measures for data security and transparency is increasing. At Magnon, we practice transparent communication with the clients in terms of the AI/ML tools we are using. Our global clientele has their own set of AI tools which their agency teams are authorised to use. Further, we follow the set of guidelines and tools provided by Omnicom - who focus a lot on the data security and protection for their agencies and clients.

As the world exceedingly depends on AI for content research and creation, data confidentiality becomes more pivotal. Once you put data into AI, it goes into ML and becomes accessible for the whole ecosystem. Therefore, creating our AI module and keeping the data and teams closer seems like an efficacious solution. 

As someone who’s seen the advertising industry grow over decades, what do you think is the biggest disruption facing the industry today, both in India and globally?

The past couple of decades in the advertising industry have been exciting, with new innovations emerging every other day. And having witnessed these ingenious changes, I have identified changing consumer behaviour as the biggest disruption we face today. 

Grabbing and maintaining consumer attention has become increasingly challenging as traditional marketing strategies lose their effectiveness.

In 2021, Google’s research in the UK, involving 31,000 purchase journeys from over 1,000 volunteers, revealed that the conventional linear consumer journey has been replaced by what they termed the 'Messy Middle.' This complex landscape shows that consumers navigate a far more intricate path to purchase, influenced by six key cognitive biases. Understanding and leveraging these biases can guide consumers more effectively toward making purchases.

With e-commerce becoming more sophisticated each day, brands need to supercharge their marketing and advertising strategies. Embracing data-driven insights and adaptive methods will provide a competitive edge in this evolving market landscape.

Therefore, the biggest disruption is the shift in consumer behaviour patterns, necessitating more nuanced and adaptive approaches to marketing and advertising.

Can you share one message for Social Samosa's 30u30 participants?

With fresh minds joining the advertising sector, we can expect to see tremendous growth and intriguing innovations in this sector. Young talent brings thought-provoking conversations and disruptive ideas to the table, keeping everybody on their toes. I am looking forward to being a part of these exhilarating conversations and learning something new. Lastly, I wish everyone all the best for the awards.