Agency In Focus: Challenger firm LS Digital's rise in the advertising world

LS Digital, which has emerged as a dominant player in the international media and digital media space, is looking at securing mandates in non-BFSI and non-travel sectors.

"We are focused on securing mandates in non-BFSI and non-travel sectors, with a particular emphasis on D2C, OTT, and AI-powered research solutions, "says Maanesh Vasudeo, CEO - Media, LS Digital, while discussing its pitching activities.

From its inception, LS Digital has been consistently evolving, transitioning from its early beginnings in the UK market back in 2006 to becoming a key Google and Meta partner in the digital advertising sphere. It has worked with 500 plus brands till date and any given year, it manages atleast almost more than 100 brands.

"During this festive season, we have been witnessing a growing interest in connected environments, including connected TV, audio, and out-of-home advertising. We recently hosted a closed-door event for LS Digital clients at Google to showcase our capabilities in this area. Other trends that we are observing include the increasing integration of performance marketing with full-funnel and top-of-funnel strategies, driven by advancements in programmatic advertising," adds Vasudeo.

Programmatic solutions like CoMMeT and all programmatic plus programmatic tech solutions are managed by its Programmatic Centre of Excellence.

Diversification strategy

LS Digital's strategic diversification across various sectors, including BFSI (Banking, Financial Services, and Insurance), travel, and tech B2B, has reduced its dependency on any single category. This year, the addition of clients like Malabar Group, ClearTrip, and Tally has increased LS Digital's expanding influence. In 2023, LS Digital secured a significant creative mandate from Kellogg's. It has also been actively involved in creative acquisitions across the group, including through its Social Panga unit.

LS Digital's meteoric rise in programmatic advertising in India is largely due to its strategic alliances with tech giants like Google and Meta. By capitalising on programs such as the Google Marketing Platform (GMP) and the Direct-to-Consumer Acceleration Program (DAP), LS Digital was able to sidestep the common challenges associated with late market entry and quickly establish itself as a leading player in the field.

Revenue bifurcation

Speaking on the firm's revenue, Vasudeo says, "After BFSI, our second-largest category is travel, bolstered by the acquisition of ClearTrip earlier this year. We've also made strategic investments in other sectors. For instance, the recent acquisition of Tally, a prominent player in the tech B2B space, and our ongoing partnership with a fitness brand, demonstrate our commitment to diversifying our client portfolio."

In addition to its core offerings, LS Digital has expanded into marketplace services. It also provides SEO services, which are considered part of its media offerings.

"Our client base has diversified significantly beyond BFSI, with new categories emerging regularly. For example, the rapid growth of quick commerce has created new opportunities for us, and we've worked with several brands in this sector. We have also made strategic acquisitions in the Middle East." highlights Vasudeo.

Approximately 70-75% of its revenue is generated organically from existing client relationships, according to Vasudeo.

Cross-selling strategy

"Within our existing client base, we've successfully cross-sold services to expand our revenue streams. For example, we've expanded our relationship with Cleartrip by taking on their branding mandate in addition to their performance marketing needs. Similarly, we've transitioned Paytm First Games from programmatic services to full-funnel performance marketing solutions," he adds.

LS Digital has also implemented a cross-selling strategy within its centres of excellence. "Clients initially engaged with one service, such as programmatic, may subsequently subscribe to other offerings like biddable performance or partner relations. This approach contributes significantly to our overall revenue growth," shares Vasudeo.

AI initiatives

LS Digital is leveraging AI through a custom-built in-house tool that offers research, media mixed modelling, planning reengineering, performance optimisation, and chatbot capabilities. “This tool has been well-received by clients, and we've recently introduced a subscription model for the AI research component,” he says.

LS Digital has expanded its operations to the US, UK, Australia, and the Middle East in recent years. “We've seen strong growth in these markets, particularly in the Middle East and India," says Vasudeo. LS Digital has its work cut out, given the many well-entrenched network players from holding companies like WPP, Publicis, IPG, Havas and Dentsu, in addition to the countless new ad shops in a fragmented media space. But there's no better time for challengers to emerge as ad firms struggle in a challenging market and media landscape. For now the LS Digital is focused on strengthening its presence in India and changing up the ad world order would be a bonus.