Brands shouldn’t focus solely on performance marketing at the bottom of the funnel: Hephzibah Pathak

New Delhi: As adex continues to rise year-on-year, much of the increased spending is flowing into media buying, particularly in e-commerce, digital, and martech. Despite their role as brand custodians, creative agencies have struggled to secure better remuneration for their services. 

However, Hephzibah Pathak, Executive Chairperson of Ogilvy India, believes creative agencies have made significant strides in extracting greater value from clients for the services they provide.

She said, “We are growing our assignments to become end-to-end custodians of the brands and our commercial agreements are reflecting this.” 

However, Pathak emphasised that the industry needs to do a better job of helping clients understand the value agencies bring to the table.

She added, “In some cases, clients do get it. But in others, we need to work harder because, as an industry, we haven’t always controlled the narrative or collaborated effectively to demonstrate the true value of our services.”

“That said, I believe the pendulum has swung a bit in our favour today,” she said.

Explaining it further in the interview, Pathak said, “There was a time when clients fragmented their business across many parties, and discussions about the marketing funnel collapsing were common. But now, it’s not just about precision or efficiency; effectiveness is equally crucial. The funnel needs balance—both the top and bottom are essential, especially in a country where category creation and desire matter. We can't focus solely on performance at the bottom of the funnel.”

Brands need experts to manage this balance, and clients must recognise the value we bring. “It's our responsibility to help them understand this value, backed by our proven track record and the tangible impact we've made for them,” commented Pathak. 

Watch the full interview here: 

Pathak emphasised the need to make the industry more appealing to the younger generation. "We haven’t done enough to attract young talent to our industry. We need to turn it into a magnet for the next generation."

She pointed out that what worked for senior professionals won't necessarily resonate with today’s youth. "The younger generation is very different from us when we started. We must provide them with more opportunities, show them their value, and build better ecosystems that support their growth."

Giving an overview of Ogilvy’s performance in the first half of the year, Pathak said, “We've had a strong first half, with new assignments coming in and expanding work with many of our clients. We're producing exciting work across various clients and categories. While the top-end market has been performing well, the mass market has been sluggish in certain categories due to a softer economy.”

However, Pathak was optimistic about the year's second half, adding, “We're now seeing signs of recovery, and clients are optimistic. With this recovery, momentum will build, and we anticipate growth. I'm especially excited about the fantastic work we have in the pipeline for the second half.”

Creativity has busted out of its box and gone mainstream. Now, anyone can create a product, service, or viral content. But despite the surge in content platforms and creators working directly with brands, Pathak insists that when it comes to solving clients’ business and brand challenges, no one does it better than creative agencies.

She said, “Agencies possess a wealth of understanding and knowledge about brands, which isn't easily replicable. Our strengths lie in building brands, influencing behaviour change, and achieving goals. We have a deep-rooted culture and, over the years, developed the methodology to achieve this. Now, more than ever, clients seek a trusted partner to handle end-to-end custodianship, navigating and shaping brands in a dynamic world. In fact, many clients express concerns about maintaining brand integrity when they have to deal with numerous entities.”