As hold cos restructure, BBDO reframes client relationships

Holding companies are having an identity crisis. Between mergers and acquisitions, whistleblowers and generative AI, clients are largely overwhelmed and confidence is shaken. 

In the midst of scale and promises of AI-enabled tech efficiencies, BBDO is repositioning itself to court clients more proactively. The Omnicom-backed creative agency this month revamped what traditional account leadership looks like, hiring Daale Carter, formerly president of Energy BBDO, into the newly created global chief experience officer role at BBDO.

“There are a lot of capability stories out there. There aren’t a lot of stories or pictures about the client’s experience,” Carter told Digiday. “We’re really trying to look at how we use client experiences as a true differentiator that we showcase.”

Continue reading this article on digiday.com. Sign up for Digiday newsletters to get the latest on media, marketing and the future of TV.

,Read More

Agencies grapple with economics of a new marketing currency: the AI token

As marketing agencies embed generative AI applications into their work, they’re adapting their pricing models to account for the cost of AI tokens.

Generative AI prompts and responses don’t come for free. LLM developers like OpenAI use tokens as a means of metering AI compute; the text you type into a prompt and the output generated by a model are counted. The more tokens processed, the more compute is used and the higher the cost. And while the tokens themselves cost a fraction of a cent, they add up fast; a recent Coca-Cola ad campaign required 70,000 prompts and millions of tokens, according to its makers.

“There’s no one model that’s the one silver bullet … you have to use a lot of different models and all of those have different token economics,” explained Johnny Rohrbach, co-founder and director of partnerships and operations at Silverside AI, a production studio backed by the founders of indie agency Pereira O’Dell.

Continue reading this article on digiday.com. Sign up for Digiday newsletters to get the latest on media, marketing and the future of TV.

,Read More