An evening with Ms Babita Baruah
Introduction
On June 21, we had an insightful session by Ms Babita Baruah, CEO of VML India, a part of the WPP group. This was the 155th WiseViews Leadership Conversation. In the session, Ms Baruah explained how advancements in digital technology have fundamentally changed the way advertising agencies operate and engage with consumers. She described the shift in consumer behaviour driven by digital media and how agencies can leverage data and analytics to understand and anticipate these changes. Ms Baruah emphasized the importance of creating seamless and connected brand experiences across multiple digital platforms. She presented case studies of successful digital campaigns, highlighting the strategies and creative approaches that have set new standards in the industry. Ms Baruah also covered the emerging trends in digital marketing and how agencies can prepare for the next wave of technological advancements.
About Ms Babita Baruah
With over 25 years of extensive experience, Ms Babita Baruah has built a remarkable career based on a deep understanding of consumer behaviour, culture, and technology. Her journey began as a Management Trainee at Wunderman Thompson in India. There she dedicated over two decades to managing a diverse portfolio of global and local brands, including PepsiCo, Unilever, Nestle, Godrej, and Reliance.
As the CEO of VML India, Ms Baruah oversees an agency renowned for its groundbreaking campaigns and innovative brand experiences. Under her leadership, VML India has earned global accolades for its work on projects such as Maxx Flash's 'The Killer Pack' and The Times of India's 'Unplastic India'.
Ms Baruah’s expertise extends beyond the Indian market. She has led WPP's Ford International Market Group, driving marketing strategies across countries such as Australia, New Zealand, Thailand, the Middle East, and South Africa. Her dual role as Executive Director at VML Thailand further highlights her capability in leveraging agency strengths for international growth.
Ms Baruah is a British Chevening Scholar and has shared her insights at prestigious institutions like Harvard Business School and the Women Economic Forum in Geneva. She is also a dedicated mentor for young professionals as part of WPP Stella India.
On how advertising has changed over time
Ms Baruah recalled her days at HTA, Calcutta, when she began her career. Those days, most of the work was done by hand. Many people would be working in the studio. The world of advertising was dominated by print and outdoor ads (hand painted).
Today, we do not even use the term advertising. We call it communication. There is a multitude of channels: print, television, outdoor, FM radio, digital, etc. This is a choice we could not have dreamt of 15-20 years earlier.
There is a resurgence of data. Advertising has always been an insight driven industry. Today, more than ever before, data has become critical for insights. Data helps us to get deep insights into consumer behaviour.
Coping with Change
The media landscape has undergone a sea change. The ad can be aired anywhere. What is really a channel? Not just television or print. It could be a slice of bread, a window or the consumer.
Sponsorship has gone beyond celebrities. Todays’ influencers are next door neighbours. They may just have a phone, or they may use blogs to influence others. Companies are trying to leverage them. The whole definition of media has changed.
It is no longer about the brand pushing the communication to customers. It is rather about consumers pulling the communication and deciding when, what and where to consume.
The competition today is not with other agencies. It is with other content: we are competing with YouTube videos, bloggers, Netflix channels, OTT, AI generated.
Consumer behaviour
Earlier communication was one way. It was difficult to measure the ROI on ad spending. There were models. But there was not enough data. Today, there is data, and the ROI can be measured.
The way we engage with brands has changed. The brand is not a badge (the shoes we use, the t-shirt we wear, the beverages we consume, etc.) that we carry to show we have arrived. The brand has become a part of us. We talk to the brand like a friend.
Performance metrics
Today things are more outcomes driven. There are clearly defined parameters for success. It is possible to measure the progress towards the goals. We can be far more ROI driven. Growth is the focus.
Technology/Martech/GenAI
There is an intense debate on what will happen when GenAI is widely embraced. Can it generate ad copy and replace human creatives? What will be the role of the ad industry and the industry’s strategists in this new world?
How agencies are responding
Culture
There is a need for change in culture/mindset. Agility is important. Going to market quickly is more important than trying to achieve perfectionism over a long period of time. Digital allows us to make corrections as we go along. We do not have to get it right the first time.
The way clients and agencies are engaging also changing. Approvals are obtained very differently, not in a top-down way. Multiple rounds of presentations do not make a sense in a world in which agility is critical.
Collaborations/partnerships
Collaborations/partnerships have become important. It has become necessary to tap all the partners to develop a solution. Earlier too, there were partnerships. But they were limited in reach and scope. For example, for a beauty brand, the agency might just consult a fashion expert or a hair stylist or a celebrity. But today, we must assemble the best team internally and then identify the people outside, who matter. These include fashion designers, influencers, bloggers, local tailors, digital platforms, etc. The entire ecosystem must be leveraged to increase the chances of success.
Ms Baruah gave the example of a girl who wore a piece of western apparel and then posted her selfie on the social media. It gained traction. She did this for a couple of days. The UK apparel company saw that the girl had many followers. She was living in a country where fashion was picking up. So why not bet on her? She got a huge wardrobe of apparel from the company. She has become one of the top influencers in the country.
Ms Baruah narrated a personal experience. She posted a management blog using the analogy of sugar-coated biscuits (titled Lessons from life) on Linked In. The piece attracted a lot of attention. Soon, a top biscuit brand wrote to her and sent her a box of sugar-coated biscuits. Ms Baruah was overwhelmed. Naturally, she started talking about the brand positively in her circles. This is how brand engagement is changing. It is becoming targeted and personalized.
Human and Tech stacks
Ms Baruah feels that each stack has a role to play. Human expertise is required for better understanding, getting under the skin of the customer and developing insights. The tech stack can enable scaling and create various options. In short, technology can only enhance the work of human beings. Technology can empower many people today.
Storytelling
Brands are built on the power of storytelling. Brands are nothing but a collection of stories and experiences. Without stories, there is no brand. The way we communicate the story may have changed. But storytelling continues to be important in connecting with consumers and brand building.
The importance of human insights, consumer behaviour, storytelling and reaching the right people at the right time has not changed. But using martech, we can accomplish these objectives more efficiently and effectively.
Concluding remarks
In Charles Dickens’ The tale of two cities, it was the best of times and the worst of times. Similarly, there are challenges and opportunities today. But we should be optimistic. We have more opportunities than challenges. Do we have the skills to exploit them? For that we must develop people. Today, it is not about traditional training programs. It is about certifications and upskilling. Also, are we looking at new talent pools? We must hire people from ecommerce brands. Ecommerce is increasingly a part of an end-to-end solution.
With technology becoming pervasive and so much buzz about GenAI, we doubt our relevance at times. But we need not be despondent. No technology can take the place of a well-educated, well informed, knowledgeable human expert. Technology does not replace us. It only enhances and enables us to do what we want to do.
Q&A
Advertising is a people business. There is no factory. People are the product. So, the workforce must be developed and managed carefully. Today, automaton is reducing the need for manpower. For example, there used to be many people employed in data entry. Today, they are not needed. So reskilling is important. Now all people cannot be reskilled. Who are the right people for reskilling? We must choose the people for reskilling carefully, those who can make it to new roles like data scientist, mathematicians, cinematographers, graphic designers, prompt engineers, etc. These roles did not exist earlier. At the same time, some old roles have gone.
The impact of technology on the cost of sales varies from organization to organization and from project to project. Say a company moves from the SAP to Salesforce platform. It involves a big investment today. But over time, the different data sources come together. There is a single source of truth. This enables better customer acquisition and development of deeper customer insights. In short, initially there is an investment in technology and training without any immediate improvement. But over time costs may come down. So, it is more about cost optimization rather than cost reduction. Often companies in a race to catch up with others, run after technology without being clear about the growth objectives, how technology can be used to achieve these objectives and what is the best technology to be deployed.
The cost of making an ad (film) does not depend on the medium. But digital enables us to make 5-6 films per day unlike the past when it would take a year. So digital enables us to go to market faster.
VML uses this framework while engaging with clients.
Brand experience (BX): This is about positioning, the idea, etc. What is the human insight, creative idea, etc? Earlier, the journey would stop here. But now, it is carried forward.
Customer experience (CX): The journey continues after the customer has purchased the product. Say the customer has purchased a car. What is the experience as a car owner? How does the customer use the product? How does the customer engage with different channels (website, platform dealer, etc.)? A superior customer experience can lead to loyalty.
Commerce: This can be completely digital or partly physical and partly digital. There are different points of conversion into sale. (The number of points can vary.) It is about joining different data sources together. And nudging customers to buy whenever there is a selling opportunity.
BX, CX, Commerce together result in one unified journey and build a connected brand. The idea is to consider both quantitative and qualitative (such as NPS, how much we recommend the brand to others) measures to do the marketing in the most effective way. MX is more about data.
In general, every business must be socially and environmentally responsible. Otherwise, the success cannot be sustained. Increasingly the focus is on stakeholder value and not shareholder value.
An ad agency’s work is defined by clients. So social responsibility must be discharged in the context of the communication. That is why responsible communication is important. Ad agencies are communication experts. They have the power of influence. They can make a great impact if they exercise this power in the right way. The way in which this responsibility is discharged varies from category to category. Technology is enabling this even in the case of MSMEs. Ms Baruah admitted that while quite a bit is being done, a lot more can be done as a part of CSR.
The two are not completely independent. There is some interdependence. The mix varies from market to market depending on the degree of digital maturity. Overall, in Asia and especially in India, the investment in digital is increasing but the importance of legacy media remains.
Legacy media is important in building awareness and establishing credibility. It creates band equity. Thus, IPL ads are expensive. But they can go a long way towards establishing the credibility of the brand.
But the trend is towards Digital first. In some categories, digital is becoming supremely important. Digital media can be used to drive impulse purchases without going through the other steps (attention, interest, discover, etc). The whole experience can start with a buy. Thus, on a Sunday over a cup of tea, buying a kurta is now on the cards. Something which could have been imagined earlier. So, in some categories the mix is 70-30 or 60-40 in favour of digital.
To summarise, the legacy media can be used to build credibility, scale and stature. The digital media can be used to identify new consumption moments and generate new sales opportunities.
B Schools should be clear about their value proposition and why students should come to them. That is positioning. Then they should be clear about the target segment and how to reach out to them. Finaly, comes the message to be conveyed that will persuade them to get admitted. Is it about a great curriculum that blends theory and practice. Is it about staying relevant to the needs of the industry?
All this easier to achieve in the online world. But there should be adequate investments in the right technology to provide students an engaging experience and maintain rigour and integrity in the evaluation of assignments and assessments.
VML uses only first party data. VML does not buy data from agencies. Data usage is always ratified by the client. There is never an attempt to invade privacy. VML strictly adheres to the best practices and comply with the laws of the land.
Why has Ms Baruah been in this industry for more than 25 years? The work of an ad agency leads to behavioural change. It can lead to new ways of consumption. The power of expression if used correctly can make someone’s life better. We must appreciate the work done by the advertising industry.