Why MullenLowe Group is dismantling the full-service agency model
MUMBAI: As the advertising industry navigates the challenges of project-based billing, the rise of in-house creative teams, and tightening profit margins, MullenLowe Lintas Group India is undergoing a significant transformation. The 86-year-old agency, led by group chief executive officer (CEO) S. Subramanyeswar (Subbu), is moving away from its traditional full-service model to embrace an 'ecosystemized" approach.
'This isn't a business of one-agency-does-it-all anymore," Subbu tells Mint. 'The future is about win-win partnerships where everyone is a participant—and a beneficiary."
Rather than trying to own every function across media, data, content and tech, the company now focuses on orchestrating outcomes through strategic collaboration. Recent partnerships with firms like Quantum (for cultural research) and Meta (for digital scaling) have already helped shape new client engagements and knowledge products, he said.
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The agency as an ecosystem builder
Subbu's thesis is simple: advertising agencies can't win by competing in silos. 'The old idea that agencies must control everything, from ideation to execution, is outdated," he says. 'Clients today deal with specialized partners across tech, data, influencer and commerce. Agencies need to bring these together."
He's visualized the agency as a nucleus, surrounded by market makers, media, data, creators, tech platforms, social organizations and academic institutions. 'Think of it as a connected operating system, not a vendor list," he says.
This model allows Lintas to lead with insights, not only campaigns. Case in point: its long-term partnership with Quantum to launch 'State of States'—a deep cultural mapping of 22 Indian states, now used to develop hyperlocal campaigns across categories.
From campaigns to 'products'
This shift also signals a change in mindset from campaign delivery to knowledge productization. 'Each state's cultural profile is a product," Subbu says. 'We offer it to any brand, even if they don't work with us."
A second knowledge asset, 'State of Weddings', is set to launch soon. Subbu calls this approach PaaS or product-as-a-service, borrowing the term from software startups. 'Agencies must stop thinking of deliverables as creative outputs and start treating knowledge as IP (intellectual property)," he says.
Restructuring from within
Internally, MullenLowe Lintas has undergone a dramatic reorganization. The traditional account–planning–creative structure has been replaced with a 60:20:20 model: 60% creative talent, 20% strategic planning and 20% business generation.
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'The number of content assets required today has exploded," Subbu says. 'You can't run an agency on the same headcount logic from a decade ago. Creative must scale and stay sharp."
Account management is no longer about just relaying briefs. 'They're now responsible for generating growth, not just coordination," he says. Planning and creative interact directly with clients.
With agencies struggling to attract young talent, Subbu is betting on internal learning. 'We spent $1,000 per head to train 400 people in 2024—across creative, planning, and business," he says.
His pitch to potential hires: 'You may not stay for 20 years, but even five years here should feel like a legacy."
Old school relationships, new school work
Despite the transformation, Subbu insists that long-term brand building remains the agency's core strength. 'We're proud of the brands we've helped grow over the decades—Lifebuoy, Fair & Lovely, Tanishq, Tata Tea, Surf Excel. That legacy doesn't go away," he says.
But he's also clear-eyed about where the market is headed. In the first quarter of this year, MullenLowe Lintas secured ₹25 crore in new business, with 43% of it coming from projects rather than annual retainers.
'Clients will still have a lead agency," Subbu says, 'but they want the freedom to bring in specialists. That's reality. The soul of the brand must stay consistent, but different expressions are okay."
No to acquisitions, yes to partnerships
While many holding groups are consolidating via M&A, Subbu says he prefers working partnerships over outright acquisitions. 'We've had conversations around co-investing to create new value, but buying companies is not the goal," he says.
He's open to sharing credit, control and even commercial upside. 'If a six-month-old startup has sharper tech or insight, I'll give them the bigger role. Ego shouldn't get in the way of results."
What's next? The agency's knowledge products may soon evolve into digital tools or even a custom LLM (Large Language Model), Subbu says. 'That's phase two. These products will power localization at scale."
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The vision is grounded in a belief that branding is more than marketing—it's cultural storytelling.
'Brands aren't just part of marketing plans—they're part of culture," he says. 'And to stay relevant, they must reflect the cultural codes of their consumers."
Or, as he puts it, 'You're not building a brand. You're building a relationship. That's something no algorithm can replace."
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