We're set to enter second international market in the upcoming quarter: Schbang’s Harshil Karia

In the one trillion rupee Indian advertising economy, MAGNA’s ‘Global Ad Forecast’ predicts that India is now consistently the fastest-growing market and leads the ad spend growth globally as the country’s advertising sales have grown +11.8% in 2023 to INR 1099 billion ($14 billion). 

Amidst this, we have seen the A&M industry going through acquisitions and mergers in the past year. While global acquisitions have been prominent in 2023, we are also seeing Indian advertising agencies going global. 

However, we are yet to see India create a global agency network. Enter creative technology-driven ad agency Schbang that expanded in the UK in 2022.

Launched in 2015 by Harshil Karia along with Sohil Karia and Akshay Gurnani, the creative, media and technology transformation agency handles clients across entertainment, e-commerce, F&B, electronics, personal, beauty, fashion, and more with brands like ShareChat, IIFL Home Loans, Britannia, Mia by Tanishq, Fevicol in its arsenal.

Catching up with founder Harshil Karia, he highlights that Schbang aims to become the first Indian agency, expanding from India to the world and bringing the best of the world to India.

In 2024, Karia elaborates that the agency is set to enter its second international market in the upcoming quarter, with research underway for a third international market, specifically in the field of Graphic Design.

Apart from expansion, AI is also a big focus area for the agency. Last year, social media was rife with AI-based creatives, and Schbang happened to be one of the pioneers in using the technology. Karia mentions that the team is closely monitoring and exploring avenues to be the first to market these initiatives.

He further sheds light on the challenges and opportunities that lie ahead in 2024, including their digital specialization, client relationships, international expansion, and the incorporation of technology and innovation.

Edited Excerpts:

A lot has changed at Schbang in the last two years. From bagging prominent clients to going global, how is the agency positioning itself in the new year?

We are a digital creative specialist, and that is how we are perceived. Additionally, digital is continuing to grow, reaching around 40-45% of brands. We see ourselves enhancing our capabilities as a digital specialist. The benchmarks we set aim to ensure that we can cater to clients by delivering creative work across every digital touchpoint they may have. This includes podcasts, containers, digital applications, and social media to digital banners, articles, programmatic ads, and location-based programmatic. 

Our focus is on becoming a better digital specialist capable of catering to every digital touchpoint available. This is a clear area of focus for us as we deepen our digital specialization, aiming for deployment at every digital touchpoint.

An extension of this focus is that most clients will perceive us as a digital specialist, while some may see us as an integrated specialist, combining online and offline. However, this integrated approach is a smaller percentage, around 10% of our clients. We recognize that we can't cater to both fully, so we position ourselves as a pure digital specialist with the ability to integrate as much as possible. 

We are not positioning ourselves as a fully innovative outfit; instead, we prioritize being a digital specialist first, with the capability to integrate all aspects of the marketing communication mix in various ways.

There is also a significant emphasis on growing our media business despite having a small media planning campus. We are actively working on expanding our media planning campus and focusing on creating creative-led media solutions. These solutions are expected to be top-notch and go beyond mere visibility.

With Schbang entering its 9th year in the A&M industry, what would you say have been the biggest growth drivers for the agency? How different was the year 2023?

I believe one of the interesting aspects of Schbang is its cleanliness. It has been robust and derives strength from a strong reputation and vulnerability around our services. 

The fact that Schbang is a reliable partner with the ability to make things happen one-to-one has been instrumental in addressing many challenges. 

Despite facing issues, particularly in contracts, the work has swiftly progressed into integrated areas.

We see the development within the Indian department, and many new clients span a variety of sectors such as food, pharma, and city tech. We have effectively worked across the board with various companies. I believe the nature of the Indian economy is also responsible for how we work.

You have talked about wanting to stay independent as an Indian agency brand. As the agency expanded into the UK in 2022, how has the transition been over the past year? What challenges and successes have emerged from this expansion, and how does it fit into Schbang's global strategy?

It's still very early days, and I wouldn't comment on this. Certainly, there have been challenges. I believe many of these challenges revolve around showcasing credibility regarding our pricing and demonstrating the strength of our pricing.

Pricing itself is not a challenge for us, but we need to position ourselves within the consideration set for the specialist brand. It's essential not to convey that we share everything, which is the perception we want to avoid, especially in the UK market. 

We have conducted an in-depth study of the 75 UK clients we desire, along with a comprehensive dataset. Our goal is to shed light on what it takes to market effectively in the UK.

Similar to how an Indian company would prefer working with an Indian agency to understand Indian insights, we are compelled to understand the UK market's ecosystem. 

This involves being perceived as a strategic partner, opening up leads, and engaging with our key stakeholders. We often encounter questions such as, "What do you think India would pay the chips for?" or "What would be the best product for the market going forward?" These challenges are among the primary ones that we have learned from and are committed to addressing over the next five years.

Can you give us a picture of the agency's clientele? How have you retained clients and won their trust?

Our agency's clientele encompasses a variety of sectors, including industrial clients, entertainment, e-commerce, F&B, electronics, personal, child support, beauty, fashion, home, pharma, BSFI, auto, travel, hospitality, and household items. From the industrial category, we have both companies and commercial players.

Maintaining financial stability is crucial, and we actively track client satisfaction scores through technology.

As our organization expands, and our clients expands, it is important that we use technology to our advantage to do our tasks, so that we are in sync with to our customer's plan, to our customers' needs.

We employ a six-day pulse operator for client satisfaction, preventing clients from directly accessing this data. It’s done through WhatsApp as well as in the local areas of the platform. This system allows us to identify satisfied clients, promoters, and potential defectors, enabling us to address issues promptly.

Looking ahead, we envision growing from a well-rounded people enterprise to a five to seven thousand people enterprise, with a 4X growth in overall capacity and client base. 

Our systems are designed to identify changes and adapt to client needs.

While our relationships remain tight-knit, we emphasize efficiency in tracking our progress and standing. We are committed to maintaining a strong team, incorporating smart individuals, and ensuring pride in our people. Additionally, we focus on efficiency to align with scaling requirements in the coming years.

In assessing changes, we have identified areas where we may not be highly satisfied with certain clients while maintaining a high overall client count. Constant tracking and improvement in client satisfaction remain a top priority for us.

In your perspective, how has the traditional agency model evolved, especially considering the rapid advancements in technology? What changes do you foresee in the role of agencies in the coming years?

I understand that the model is evolving, and we are witnessing a rise in highly specialized service plan providers, such as talent agencies, which are particularly interesting for us. The trend also includes highly specialized players aiming to enhance their capabilities.

In addition, there are traditional integrated players like Schbang, where we find individual specializations. Overall, the industry is moving within a rich ecosystem, striving for excellence at every level. 

It's important to note that there isn't a one-size-fits-all answer to the desired ecosystem. Some clients prefer working with a single agency for all their needs, while others opt for multiple agencies for different aspects.

At Schbang, our focus is on creating specializations at every service platform. We acknowledge the diversity in client preferences and are committed to tailoring our approach to meet the unique requirements of each service platform.

Schbang, for its part, has been positioning itself as a technology agency. With 2023 being centered on AI-based social media work for the agency, how has Schbang's digital journey evolved with the integration of AI and other technological innovations? In adopting AI and tech innovations, have you noticed any significant differences in building and maintaining client relationships?

Regarding AI, we anticipate a rapid online presence and aspire to be at the forefront globally. 

It's like the tip of the iceberg; as soon as we take a step forward, there will be fast development. Our team is closely monitoring and exploring avenues to be the first to market these initiatives.

We are currently operating in a mature marketing ecosystem. Clients exhibit more patience but are also more demanding. They want to navigate through the process and take control patiently, but at the same time, they demand to be the first in every aspect.

The majority of working frameworks and the way clients operate have undergone a significant transformation over the past few years. I don't complain too much about the structure of client relationships. Overall, despite an inevitable change in how the volume of creative work is perceived, the dynamics are shifting.

Clients are expressing the need to produce more work at a faster pace, suggesting that we should be able to increase our output. 

For instance, if a unit is currently able to produce four outputs, the discussion is focused on the possibility of scaling up to eight outputs. This is an ongoing discussion, and we are also seeking input from our teams and mentors on this matter.

The agency has also forayed into talent management with Schbang MMaximize, what prompted the agency to enter this space? How does it contribute to Schbang's overall ecosystem and goals?

What prompted the agency to venture into Schbang MMaximize is the growing nature of the influencer economy, with 10% of all additional steps indicating that people are consistently participating in the influencer economy as service providers to clients, influencing how choices are made. 

Recognizing this emerging trend, we identified a growing need for a new idea.

We decided to place a significant focus on influencer management services, representing influencers in a professional manner consistent with how we already manage our agency business. With influencers becoming a substantial part of the client landscape and playing crucial roles as decision-makers in client-consumer interactions, it became imperative for us to be positioned at that end of the spectrum.

Moreover, influencers, as one of the fundamental aspects we work with at Schbang, are not confined to mere participation; they are integral to our culture. 

Therefore, effectively representing influencers and being cultural stewards for them is a step we are currently taking. This allows us to assert that Schbang has been an influencer through and through its culture.

Have there been any notable changes in Schbang's organizational culture due to the emphasis on technology and innovation?

Absolutely. The focus we are driving is on precision and performance. At every level of the team, we prioritize discussions about our CSAT, our Pulse, and we diligently track both within the organization. 

We preemptively implement measures that provide insights into when someone might be considering a move within the organization. This proactive approach allows our HR teams to collaborate with them in building a more focused career path.

We emphasize being more PPI-driven as a customer, more measurement-driven, more focused on corporate growth, and more quantified. We leverage these aspects to take advantage of the opportunities available, and that's where our efforts are concentrated.

What are the key trends you foresee shaping the advertising and marketing industry in the short term, and how is Schbang positioning itself to capitalise on these trends?

One of the key trends that I foresee is the continued digital evolution, with an increasing number of touchpoints for customers. 

Digital platforms are becoming more sophisticated, enabling us to engage consumers at each of these touchpoints more effectively. The ability to navigate and utilize these additional touchpoints is a growing trend.

The second noteworthy trend in digital technology is the maturation of Generation AI. It has moved beyond the experimental phase and is now being integrated into our organizations. 

The focus is on tailoring Generation AI to align with specific organizational needs. This marks a significant development in the adoption of AI within our industry.

Looking ahead, the next area of evolution involves the tools employed for design, particularly those leveraging AI. This signifies a shift towards more advanced and intelligent design processes.

One big change this year is Google Cookie phase-out. Programmatic measurement was founded on third-party cookies and data errors are not expected. So how can the industry navigate this challenge?

I believe that the issue of cookies has been magnified more than necessary. While a considerable amount of time is still spent within platforms like Facebook and videos, programmatic remains a significant aspect. 

However, measures such as signals and cluster cohorts have been introduced in programmatic advertising to maintain marketing opportunities.

Despite the ongoing phase-out of cookies, there is a sense of maturity in handling the collection of first-party data. I am not overly concerned about the cookie phase-out at the moment. 

The industry has witnessed sufficient awareness and preparation for this change, and it represents a relatively smaller portion of the advertising spend.

What do you consider as the most important skillsets for agency heads in today's dynamic and tech-driven landscape?

I think that customer centricity, along with the necessary skill sets for our agency heads, is evolving. Agency heads need to listen to clients, understand their needs, and provide solutions to address both immediate challenges and long-term business growth. 

Consumer centricity is crucial; understanding and aligning with the clients' goals should be a necessary skill set of all agency heads.

Furthermore, business-ready creativity is a skill that agency heads must possess. While traditional roles like advertising, writing, and influencing are important, the ability to deliver creative solutions that are aligned with business objectives is important. 

Technology has become a critical skill set, and agency heads need to comprehend the technological landscape, especially in scaling organizations and navigating the shift towards tech-centric solutions.

Financial management is another vital skill set, as running an enterprise requires effective management of resources. 

Finally, people management is essential in a people-centric business. Understanding the nuances of managing a diverse workforce at scale is crucial. We need to humanize the approach and consider the human aspects before delving into the intricacies of people management.

Acquisitions and mergers have happened across advertising and marketing in 2023. Does Schbang have any plans to acquire smaller agencies to strengthen your arsenal?

Not in India.

Looking forward, could you share some of Schbang's short-term and long-term goals for the year 2024 and beyond? How do these align with the broader vision for the agency?

Our short-term goal is definitely to be more client-centric as an organization, delivering innovative solutions to market promptly while maintaining a strong focus on client satisfaction in day-to-day interactions. 

We want to serve clients across various industries and encourage our teams to adopt a consumer-centric mindset, not only focused on clients but also understanding and catering to their customers. 

In the short term, we aspire to be a digital pioneer, positioning ourselves at the forefront of numerous touchpoints for our clients. Our primary focus is on achieving client satisfaction within the industry. 

Looking ahead to the long term, our vision is to become the first Indian agency, expanding from India to the world and bringing the best of the world to India.

We are set to enter our second international market in the upcoming quarter, and research is underway for a third international market, specifically in the field of Graphic Design.

Another exciting area that we envision is collaborating with emerging enterprises in smaller towns in India, while also creating new opportunities for talent to work with us in these smaller towns. This is our focus area.