As Ad Agency Wars Heat Up, This Expert Pinpoints the Winning Strategy

November 17, 2017

Lou Paskalis, a media executive from Bank of America, joined Cheddar to discuss the tectonic shifts taking place in the media industry, as it's been a tough year for media companies.

Paskalis says the massive shift in the media landscape is taking place because the consumer is in more control than ever before. To stay relevant, advertising agencies need to invest in relationships when competing for attention, he says.

FULL TRANSCRIPT

MALE_1: We're now in an era, right? If we're going to compete for attention, we need to invest in the relationship. And we have the technology to look at lifetime value. Over time, in a privacy policy compliant anonymized way, which I must say. We can actually see that individuals have had interactions with this kind of content and cultivate the relationship by putting content in front of them that is really relevant to what they're doing right now. And in doing that, you're investing in that relationship. You're demonstrating that you share the same values. You're you're building trust really. So that when they are in the marketplace for a product, um, you're not just, you know, starting the conversation there, you're actually recommending something. So product as solutions.

MALE_2: So this has always been a thing for banks with their customers, which is telling people how to protect their money, how to grow their money. One of our investors, Rivet Capital, did a piece that by 2030 the amount of investable wealth the millennials have will, will 5x. Right? How does the bank think about all the things you just said in the context of the next generation of investor savers and spenders?

MALE_1: Yeah, well, the answer is kind of, i- it, the answer actually lies in your question. If you are looking at lifetime value and you have a high fidelity way of doing that, you can see that the next generation and the generation after them are people that we should be cultivating a relationship with now. Not because they are, perhaps, the most valuable customers today, but over the course of a lifetime they'll become that. And, you know, Bank of America is uniquely positioned with eight different lines of business that actually are relevant throughout people's lives. You know, not just checking savings for home loans and car, car loans and wealth management retirement. So, as we start to put content, like better money habits, in front of Centennials about, you know, how to be smarter with their money, that starts to say, you know, we care about you. Because it doesn't end with, you know, some sort of [OVERLAPPING].

MALE_2: As, as you're sitting here and you're explaining this all to me, I'm thinking to myself, wow, this is a lot of work for people at Bank of America to do. And I'm thinking to myself, what is your agency do in all this and how are they even able to participate in this, given that you're not throwing something to them that they're sticking on a site or sticking on TV?

MALE_1: Yeah.

MALE_2: Is there a role for the agency in, in all of this stuff that you're talking about? [OVERLAPPING]

MALE_1: Yeah, there, there are a number of roles. Like, you know, so my background is com strategy and so, we c- certainly rely on our agency for a communications strategy, insights around the audience, really understanding mindset motivation. Beyond the signal we get on our own platform. And they're helping us work with data partners, they are helping us think about technology solutions. So, there's more of that, there's less of traditional ad box.