AdExchanger Podcast Summary: "What The World Looks Like To Smaller Agencies"

Release Date: January 28, 2025

Introduction

In the January 28, 2025 episode of AdExchanger Talks, host Allison Schiff engages in an insightful conversation with Remy Stiles, CEO of Kepler for North America. The discussion delves into the challenges and opportunities faced by smaller agencies in a rapidly consolidating ad tech landscape, the impact of major industry mergers, and the evolving role of AI in media buying. Throughout the episode, Remy shares his personal journey, Kepler’s strategic positioning, and forward-thinking approaches to maintaining competitiveness and innovation.

Guest Background

Remy Stiles opens the conversation by sharing personal interests and his athletic background, fostering a relatable connection with the audience. As a Brandeis University alumnus, Remy emphasizes the importance of teamwork and perseverance, which he translates into his professional life at Kepler. He proudly mentions, “[...] we actually hold sort of a fake record for the fastest time with three women on the team” (02:36), highlighting the company's culture of camaraderie and excellence.

Kepler's Evolution

Allison Schiff prompts Remy to provide an overview of Kepler, tracing its origins from a spin-off of MediaMath in 2012 to its current status as a full-service media agency. Remy outlines Kepler’s comprehensive services, which encompass strategy, execution, and analytics across all paid channels. He states, “We are a full service media agency, essentially running pretty much all paid channels and everything from strategy through execution through analytics” (08:45). Remy credits Kepler’s sustained growth and success to its foundational values of transparency, growth mindset, and continuous innovation.

Kepler within Q Collective

The discussion shifts to Kepler’s acquisition by the Q Collective, part of Japan's Hakuhodo DY Holdings. Remy describes Q as a "fantastic organization" and emphasizes the symbiotic relationships within the collective, enabling Kepler to collaborate with other innovative firms like Sid Lee and SY Partners (15:42). This integration allows Kepler to leverage shared intelligence and resources while maintaining its independent operational ethos, fostering an environment of mutual growth and strategic collaboration.

Industry Trends and Market Dynamics

Allison brings up the significant proposed acquisition between Omnicom and IPG, aiming to form the largest advertising company globally. Remy shares his perspective on this consolidation, noting both challenges and opportunities for smaller agencies like Kepler. He observes, “When you have strength like that in the marketplace, it just creates opportunity for all the rest of us to innovate even faster” (19:44). Remy believes that such mergers push smaller agencies to differentiate themselves through stronger client relationships and innovative offerings, ultimately benefiting the broader market landscape.

Principle-Based Media Buying

A substantial portion of the episode addresses principle-based media buying, especially in the context of the Omnicom-IPG deal. Allison inquires about client concerns regarding this practice and whether Kepler engages in it. Remy clarifies, “Kepler does not participate in principle-based media buying” (24:03), emphasizing their focus on audience-targeted strategies. He underscores Kepler’s commitment to transparency and tailored solutions, ensuring that media buying aligns with clients' specific goals rather than adhering to broad principles that may not offer tangible value.

AI in Media Buying

The conversation then explores the integration of AI into media buying processes. Allison asks Remy about Kepler’s practical use of AI to enhance productivity without unnecessary complexity. Remy highlights three key areas where AI is making a substantial impact:

1. Creative Production: Kepler Creative leverages AI to facilitate rapid iteration of creative assets, addressing the demand for diverse formats across platforms. “Kepler Creative is our response to that and we've seen really great reception from the clients and the market” (29:50).

2. Tech and Analytics: Utilizing natural language processing, Kepler has developed tools that allow for more intuitive data analysis. Remy explains, “Using natural language, it’s really easy. So we’ve built a tool on top of Kip, our tech stack, where we can do just that” (29:50).

3. Workflow Optimization: AI enhances daily operations, making processes like audience planning and media buying more efficient. Remy notes, “We’re really focused on how we responsibly use AI and in a client approved, transparent way” (29:50).

Responsible AI Use Policies

Allison emphasizes the importance of ethical AI usage, prompting Remy to discuss Kepler’s approach. Remy reiterates the centrality of transparency, stating, “Transparency is obviously the most important thing” (33:37). Kepler has established core principles to ensure that AI augments rather than replaces human creativity and decision-making. They have formed dedicated teams that include legal, business, and technical experts to oversee AI ethics compliance and engage clients in developing robust AI governance frameworks.

Future of Media Planning and Buying

Looking ahead, Remy envisions a media planning landscape deeply intertwined with AI, enhancing efficiency and strategic depth. He confidently states, “AI will not replace those roles [media planners], but it is important for people to understand AI in order to not become irrelevant” (38:37). Remy anticipates that AI will automate manual tasks, allowing media professionals to focus more on strategic initiatives and creative insights. He emphasizes the importance of developing unique value propositions and leveraging AI tools to maintain a competitive edge.

Mergers and Acquisitions (M&A) Activity

In discussing M&A trends for 2025, Remy reflects on Kepler’s strategic acquisitions, such as Infectious Media in 2020 and Napkin in 2021. He outlines the company’s focus on expanding geographical coverage and enhancing complementary skill sets. “We’re always keeping an eye towards what we need to do and develop next” (41:54). Remy hints at the potential for future acquisitions that align with Kepler’s growth objectives, though he maintains confidentiality regarding specific targets.

Conclusion

The episode closes with Allison and Remy underscoring the significance of adaptability and strategic foresight for smaller agencies in a dynamic ad tech environment. Remy affirms Kepler’s commitment to innovation, transparency, and client-centric strategies as key drivers of their sustained success and resilience amidst industry consolidation and technological advancements. The conversation offers valuable insights for brand marketers, ad agencies, and media technology providers navigating the complexities of today’s advertising landscape.

Notable Quotes

• Remy Stiles (02:36): “We actually hold sort of a fake record for the fastest time with three women on the team.”
• Remy Stiles (08:45): “We are a full service media agency, essentially running pretty much all paid channels and everything from strategy through execution through analytics.”
• Remy Stiles (15:42): “Q is a fantastic organization... we have the privilege of tapping into the intelligence of the network, pulling each other in for thought leadership, collaborating on projects.”
• Remy Stiles (19:44): “When you have strength like that in the marketplace, it just creates opportunity for all the rest of us to innovate even faster.”
• Remy Stiles (24:03): “Kepler does not participate in principle-based media buying.”
• Remy Stiles (29:50): “Kepler Creative is our response to that and we've seen really great reception from the clients and the market.”
• Remy Stiles (33:37): “Transparency is obviously the most important thing.”
• Remy Stiles (38:37): “AI will not replace those roles [media planners], but it is important for people to understand AI in order to not become irrelevant.”
• Remy Stiles (41:54): “We’re always keeping an eye towards what we need to do and develop next.”

This comprehensive summary encapsulates the key discussions and insights from the episode, providing a clear understanding of the challenges and strategic responses of smaller agencies like Kepler in the evolving advertising and media landscape.