LS Digital is making waves in the advertising world, leveraging cutting-edge technology and strategic hires to capture both local and international markets.
Strategic Partnerships Drive Expansion
LS Digital has carved out a significant presence in the international media and digital space by partnering with tech giants like Google and Meta. These alliances have been pivotal in the firm’s ability to offer comprehensive programmatic advertising solutions. By capitalizing on initiatives such as the Google Marketing Platform (GMP) and the Direct-to-Consumer Acceleration Program (DAP), LS Digital has effectively bypassed the typical challenges faced by late market entrants.
Maanesh Vasudeo, CEO – Media at LS Digital, emphasizes the importance of these partnerships. “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,” he explains. This strategic focus allows LS Digital to diversify its portfolio and tap into emerging markets that are ripe for innovation.
Diverse Client Portfolio Enhances Market Position
Since its inception in the UK in 2006, LS Digital has expanded its client base to include over 500 brands globally. The firm manages more than 100 brands annually, including prominent names like HDFC Life, Tata AIG, the MMT Group, Goibibo, and Red Bus. This extensive portfolio not only showcases LS Digital’s versatility but also reinforces its reputation as a reliable partner for businesses across various sectors.
Key Clients and Sectors:
- Finance: HDFC Life, Tata AIG
- Travel: MMT Group, Goibibo, Red Bus
- Retail and Infrastructure: Multiple clients across these sectors
By maintaining long-term relationships with such diverse clients, LS Digital ensures steady revenue streams and continuous growth opportunities.
Innovative Approaches in Programmatic Advertising
LS Digital’s Programmatic Centre of Excellence manages advanced programmatic solutions like CoMMeT and all programmatic tech solutions. These tools enable the firm to deliver highly targeted and efficient advertising campaigns, optimizing performance across multiple channels.
Programmatic Solutions Overview
| Solution | Description |
|---|---|
| CoMMeT | Comprehensive media and marketing toolkit |
| All Programmatic | Integrated tech solutions for seamless campaigns |
These innovations allow LS Digital to stay ahead of the curve, providing clients with the latest in advertising technology and strategies.
Diversification Strategy Reduces Risk
To mitigate dependency on any single sector, LS Digital has pursued a strategic diversification approach. Initially dominated by the BFSI sector, which accounted for 80% of revenue in 2018, the firm has successfully reduced this to 35-40%. The travel sector now represents the second-largest revenue stream, bolstered by the acquisition of ClearTrip.
Additional sectors include tech B2B, with acquisitions like Tally, and marketplace services through the E-market brand. LS Digital’s commitment to diversification is further evidenced by its creative acquisitions, such as the Social Panga unit, which enhance its service offerings and market reach.
Recent Acquisitions and Expansions:
- ClearTrip: Strengthens travel sector presence
- Tally: Expands tech B2B capabilities
- Social Panga: Enhances creative services
This diversified portfolio not only spreads risk but also opens up new avenues for growth and innovation.
Cross-Selling and Organic Growth Strategies
LS Digital has effectively implemented a cross-selling strategy within its existing client base, significantly boosting revenue streams. By offering additional services to current clients, such as expanding ClearTrip’s branding mandate or transitioning Paytm First Games from programmatic to full-funnel performance marketing, LS Digital maximizes the value derived from each client relationship.
Approximately 70-75% of LS Digital’s revenue is generated organically from existing clients, highlighting the success of their relationship management and service expansion efforts.
Cross-Selling Success Stories:
- ClearTrip: Expanded from programmatic to branding
- Paytm First Games: Transitioned to full-funnel performance marketing
These strategies not only enhance client satisfaction but also drive sustainable revenue growth.
Embracing AI for Enhanced Performance
AI is at the core of LS Digital’s innovation strategy. The firm has developed a custom in-house AI tool that offers research, media mixed modeling, planning reengineering, performance optimization, and chatbot capabilities. This tool has been well-received by clients, leading to the introduction of a subscription model for the AI research component.
“Leveraging AI allows us to provide more precise and effective solutions to our clients,” says Vasudeo. This initiative not only enhances the firm’s service offerings but also positions LS Digital as a forward-thinking leader in the advertising industry.
Future Outlook and Market Position
LS Digital’s expansion into markets such as the US, UK, Australia, and the Middle East underscores its global ambitions. The firm has seen robust growth in these regions, particularly in the Middle East and India. Despite the competitive landscape dominated by established players like WPP, Publicis, IPG, Havas, and Dentsu, LS Digital is poised to continue its upward trajectory.
“There’s no better time for challengers to emerge as ad firms struggle in a challenging market and media landscape,” Vasudeo notes. LS Digital’s focus on strengthening its presence in India is expected to further solidify its position in the global advertising arena.
