Tangram Founder and Managing Director, Helen Johnson spoke with TickerTV this month to discuss how AI is reshaping the advertising industry.
How is AI reshaping the advertising industry?
“Originally, we thought AI was really going to take out those manual, administrative tasks. But actually, it’s revolutionising the creative industry. The speed at which we can get content out and the reduced cost of creating that content is just huge.”
Can you share some standout examples of how agencies are using AI in these clever ways?
“Agencies, especially the big networks, are focused on productising. That’s the strategy. How do we turn these capabilities into products to protect future margins? They’re not just competing with each other anymore but also with the platforms themselves, with Meta launching their own tools and offerings.
Productising content generation platforms is really the big play we’re seeing.”
Let’s talk a little more about the risks or challenges that big holding companies need to watch out for, especially with this wave of AI-generated content.
Security and plagiarism are major concerns, and most of the big holding companies are across it. One of my friends, Kara Bombell, recently launched EthicAI to look at exactly that—who has the upper hand here?
Interestingly, they believe that smaller agencies, which are often more agile and better equipped to handle risk, might actually have the edge. Or at the very least, they have a genuine opportunity to compete in a way they haven’t been able to before.
Remaining nimble seems to be the key. How can indie agencies stay competitive as automation takes over more and more tasks?
For smaller agencies, procurement is usually simpler. They can test and iterate quickly with smaller, more flexible solutions. Bigger holding companies might have the funds, but they often lack the infrastructure to move at the same speed. So for independent agencies, I would say the key is to use your ability to move quickly. Stay on top of the latest tech and take advantage of your agility.
Do you see AI as a tool for creativity or more of a cost-cutting measure? What are you and your team witnessing?
We’ve seen a big impact on client-facing work, especially in creative and marketing communications.
What we haven’t seen yet is agencies using AI to improve their back-office functions like finance, HR, and tech support. There are small-scale applications out there, but the real potential lies in changing how daily transactions and processes are managed. That part hasn’t really been touched yet. Of course, cost savings are part of the story, but there’s also an opportunity to redistribute those savings in ways that get more value out of people and platforms.
Are clients excited about this, or are they still a bit wary?
Clients are excited and are actively pushing their agency partners to adopt these tools. It’s a race to create the best product, as fast as possible.
We saw massive investment last year, including £250 million from WPP, and there’s likely even more on the way across the major holding companies.
