Beyond efficiency: How GenAI unlocks the full potential of Creative Economy 2.0

Scott Tieman

by Scott Tieman

GenAI in Advertising R1hbapm

Having spent over two decades in the industry, I believe there will always be an important place for human creativity. Storytelling is ingrained in our nature, and brands need to be great storytellers to resonate with consumers. That is fundamental and immutable. AI technologies like predictive analytics and machine learning have been playing a role in the ad agency business for some time. However, it is the rapid integration of generative AI (GenAI) into the creative process that has advertising agencies going through a moment of introspection as they are forced to reevaluate their value proposition and business model. 

Automation to augmentation

GenAI is currently helping agencies automate repetitive tasks, freeing up human creativity. But it can be used for far more than automation. GenAI can augment human creativity, pushing the boundaries of insight discovery, hyper-personalization, real-time channel engagement and assessment. These powerful applications are fulfilling marketers’ dreams of delivering the right message to the right person through the right channel and time. 

Humans should remain in charge of crafting the core ideas and bringing them to life. However, executing the ideas at scale by creating various iterations based on the end users' preferences in real-time across channels is something that isn’t easy without AI. 

A new economic model

The need for revamped compensation structures has been brewing for years. Advertising agencies need to effectively communicate the value of their human craftsmanship, the emotional and storytelling aspects that AI can't replicate. Building a mutual understanding with clients is crucial, especially as AI democratizes creativity. Anyone with internet access can create a marketing campaign, but there's a vast difference between an idea and one that truly resonates. The power lies in creating ideas that move people, and the only way to gauge that is through audience reactions. This understanding allows agencies to leverage AI and showcase how it can amplify their ideas and create hyper-personalized brand experiences.

As agencies integrate GenAI, a shift from traditional billing to value-based pricing may be warranted. This means moving away from solely charging hourly rates and focusing on the intrinsic value generated from the creative work. Agencies must showcase their ideas, articulate the unique value their creative work brings to each client and campaign and highlight the transformative impact of their work, rather than the time spent. This approach aligns agency compensation with client success, encouraging more creativity and innovation without having timetables as constraints. 

Furthermore, value-based pricing thrives when an agency offers an integrated scope bringing creative, media, data and technology together. GenAI can support a seamless integration across these disciplines and demonstrate measurable impact of creativity across the entire customer journey. This strengthens the case for value-based pricing, transforming creative development from a cost center into an added value proposition. 

Monetize the art and science of marketing 

AI empowers agencies to amplify creative ideas and deliver tailored digital solutions. By leveraging AI and diverse data sets, agencies can help clients deliver hyper-personalized brand experiences that resonate with targeted audiences. AI can streamline client feedback and creative revisions, allowing clients to directly participate in the creative process. This seamless blend of creativity and technology has to become an integrated offering in order for agencies to stay competitive in the digital age. Additionally, GenAI opens doors to new revenue streams through innovative service models. These models could include subscription-based access to custom GenAI tools of a product marketplace model for other vendors to build on top of the agency's platform. This helps to cater to a broader client base and diversified revenue streams. By embracing GenAI, agencies can attract diverse clientele while establishing themselves as leaders in the tech-driven creative landscape.

The future outlook

The rapid evolution of GenAI presents a pivotal shift for advertising agencies. By developing long-term AI strategies, robust infrastructure and adaptable service models, agencies can leverage this technology to deepen client relationships, increase operational efficiency and achieve greater campaign effectiveness. The future of the creative industry demands a new type of agency: creative powerhouses that are also technology-driven enterprises, offering comprehensive and integrated solutions.

Creative Economy 2.0

Explore the transformative impact of AI on agency-brand dynamics in our panel discussion.


GenAI in Advertising R5dkbapm
Scott Tieman
Global Head of AdTech & MarTech at Star

Scott Tieman brings over two decades of experience in marketing communications and ad agency networks. He is responsible for strengthening partnerships with global ad agency networks and driving the adoption of AI-driven marketing transformations and platform solutions at Star. Previously, he managed a $300M portfolio as Managing Director at Accenture Song in San Francisco and led the development of its global media and adtech business. Scott is recognized as a key influencer in today’s evolution of the creative economy. His expertise in managing client solutions and leading digital marketing innovations sets him apart in the industry.

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