“I don’t think that the middle ground is relevant anymore. You have to change how you go to market and how you show up as a brand.”

Michelle Whelan, Co-CEO of VMLY&R and CEO of VMLY&R Commerce, is explaining the revolution afoot in social commerce. Shopping is changing and social commerce comes hand in hand with a seismic change in how, where and when brands are showing up in consumers' lives. A shift which is at the very top of the marketing agenda.

It's all too easy to look at the post-pandemic decline in direct to consumer brands as evidence of a return to business as usual. However, the marketing hype surrounding social commerce is far more than the latest blip in the industry’s fast-moving hype cycle. Instead, it is a long-term shift in marketing culture. “For us when we talk about social commerce it is all about practical delivery. Whether it is using dynamic videos or understanding where on the commerce journey you have to show up and why,” explains Whelan.

When it comes to bringing commerce to life and evolving social commerce culture, Whelan believes that live shopping is going to be an increasingly important trend. “In the East we see live shopping and live experience as a key growth area and that is only going to increase. The integration of creators and influencers in those live experiences is only doing to grow,” she explains.

It is a significant shift for brands. One that underlines that the growth of retail ‘experience’ is not just about bricks and mortar stores. Social commerce is an experience in its own right. An experience which provides brands with a vibrant channel for both direct sales and long-term brand building.

The co-creation model of influence 

Yet to make the most of this shift marketers move beyond the stereotypes of influencers as ‘detestable freeloaders’ and instead recognise that the right ones can act as compelling creative partners. As Whelan explains: “The older model of influence where we pay people to promote a product is shifting and becoming a co-creation moment. It's much more authentic and effective.”

She points to the rise of TikTok as a key platform that is allowing brands to show up in a relevant way to consumers. “Social Commerce is going to be a huge business because we are shortening the purchase decisions and we are using highly useful, engaging and relevant content,” she explains. 

Re-imagining the customer experience  

The launch of the Amazon Inspire app underlines that the market is constantly changing. Whelan points to the new opportunities in the ‘try before you buy experience’. Such as solutions which allow consumers to scan their bodies to ensure a greater chance of a perfect fit as a key area of innovation.

Returns remain in the spotlight for all the wrong reasons as the environmental impact of returns continues to garner attention. Whelan points to China where delivery providers wait as consumers try on clothes as one way this challenge is being tackled. Yet clearly in the West there is still much more to be done. “Returns are still an issue, we need to have more innovation in that space,” she adds.

Payment innovation is another key focus for progressive brands. “We have seen a huge change in payment innovation. Buy now pay later has become a new moment in the commerce journey,” explains Whelan. When it comes to building customer loyalty, deferred payment has become another important moment to build a relationship.

How cultural currency drives ecommerce events 

Whelan believes that brands are recognising that ecommerce is about far more than just direct sales. “Ecommerce is moving upstream. You can really use it for driving brand equity. Whereas it was typically always about driving sales,” she explains.

According to VMLY&R 60% of shopper journeys begin online. A statistic which means that marketers need to understand the triggers and paths to purchase. “Winning is about creating that bond with consumers and building that brand love.” A love which must increasingly be platform agnostic. The challenge for brands is ensuring they can build the same level of loyalty, love and engagement across platforms. Whether Tesco, Marketplace or Amazon, brands need to be more aware of their product hierarchy.

The challenge for brands is finding not just the right platforms, but the right moments where they can really build that brand equity. “Engagement comes through relevant moments,” explains Whelan. She continues: “Whether it is interests, passion points or cultural moments it is all about engaging through relevant moments.”

Pointing to the marketing phenomenon of the Barbie film, Whelan shares the importance of tuning into and tying up with key cultural moments. “Whether it's tapping into viewing habits like Boots teaming up with Love Island it is all about understanding what consumers are connecting with,” she adds.

In the midst of manufactured realities, photoshopping and the attention factory of social media, it is easy to lose sight of the importance of building trust, empathy and understanding with consumers online. Whelan explains: “It is also important that brands understand what people are really going through, what is happening in their lives. Whether it is the impact of the Cost of Living crisis, Back to School logistics, watching Love Island or Barbie, it is all about being in touch. Brands that resonate with people’s lives feel more modern.”

The AI advantage 

In the midst of a binary narrative on AI either killing your job or being the answer to every given problem, Whelan maintains an impressively open-minded approach. “We are very lucky to have some really passionate people in our agency who started a community to look at the different ways that AI can impact our business,” a crucial lens to view a shift which will have drastically different implications across disciplines.

When you consider that The Blueprint’s Truth About Talent survey revealed that just 1% of agency leaders expressed worry about the Impact of AI on the advertising industry, understanding the impact through a range of different lenses is crucial.

In a comment that will make creatives collectively exhale with relief, she adds: “We are looking at taking away timesheets and administrative tasks with AI. If we can model our business through AI we take away some of those administrative tasks.”

Whelan continues: “In terms of creative outputs we are also using testing tools and using AI to find different ways to write and translate headlines.” Whelan believes that these shifts will create efficiency and speed. Yet will they ultimately kill creative roles? Obviously not.

“It is all about placing a premium on breakthrough thinking,” she explains “Connecting insights and data points with much more precision in real time is increasingly possible. There was a point 12 to 18 months ago where AI was really controversial but we have really passed that point.”

It's a transition which has been led by action, not death by a thousand powerpoints of AI agency positioning documents. She points to the tangible example of using AI to create cocktails with Diageo as just one example of how the agency has urged brands to embrace the opportunity to experiment with creativity through the lens of AI.

Leading with curiosity 

Embracing change comes naturally for Whelan, but when it comes to staying curious, keeping focused on people is at the very top of her leadership agenda. She explains: ”I am a real people person and for me, it is all about ensuring I stay close to the people. We are going through so much change as an industry so it's vital to stay in touch.”

In practice, this means Whelan is disciplined in dedicating time to coaching and mentoring a number of people. As an active member of Women in Communications London (WACL), she is chair of the Future Leaders Award committee.

Rather than bemoaning the great expectations of Generation Z in the workplace, she is laser focused on listening to them. “For the next generation coming through the industry the question for leaders is do they really understand what they care about?” she explains.

She continues: “We always talk about bringing your whole self to work and it is really important to understand people’s passion points or what they are worried about.”

Whelan also commits time to continual learning, she has recently completed training in CX, amongst other courses. “I like knowing how things work because then you understand how they impact your business.” In addition, she sits on the board of the charity for the Blind, where she helps to create job opportunities for people with impaired sight.

“I had a great coach who explained the difference between being in the business and being on the business. Being on the business is about shutting down your email and thinking about where the agency needs to be in the long-term” she explains. This also means ensuring that she keeps a helicopter view of the broader industry trends and challenges through networking in groups such as WACL and The Marketing Society. “It is vital to really understand the real challenges other businesses and brands are facing,” she explains. 

This style of leadership is a balancing act as Whelan maintains the importance of both prioritising and carving out the time for big picture thinking, without losing touch with the intricacies of the business. She shares her belief that it’s vital to stay connected to key people across the business, to be able to notice a problem before it escalates. 

Inclusivity in motion 

Creating the conditions where every person at the agency can thrive is the constant in an ecosystem of change. She explains: “We have an amazing people team that are so in tune with what is happening culturally.”

The agency has a range of initiatives to support staff. These include ‘pitch your passions’ which gives agency staff the opportunity to fund their passion projects with a quarterly grant. In an era in which a growing number of young creatives have a side hustle, this is a simple way to communicate that employees can thrive at the agency and maintain personal passions.

Crucially these initiatives are long term investments. This year marks the fifth anniversary of the Incubator. A unique work experience programme created in the UK, which has also been exported to the US and a range of other EMEA markets.

Sixty students from diverse backgrounds have now graduated from the programme, landing business scholarships and benefiting from a money-can’t-buy live pitching experience which brings together a diverse range of staff at the agency. Debbie Ellison, Global Chief Digital Officer at VMLY&R Commerce and Elke van Tienen, Global Head of People at VMLY&R Commerce are both the Co-Creators and driving force behind the Incubator.

These shared moments of progress combined with the fact that inclusivity is so central to the business led to a hugely proud moment for Whelan and the team. Last year the agency launched its inclusion practice, an expansion which underlines how the agency’s expertise, energy and effort with inclusion translates into client work

A golden quarter 

Whelan remains focused on making the moments where the agency comes together matter. She explains: “Learning and development is always a priority and we put a lot of effort into that,” she explains. Adding: “We have a beautiful office, but we are also committed to creating an environment where people feel welcome. Lots of the events we put on we ask people to come into the office to create those opportunities to bond.”

Opportunities for growth are also at the top of the agenda. While some 2024 indicators suggest economic growth will be as flat as a pancake, predictions for Christmas spending remain mixed. For Whelan the festive period is alive and kicking: “We are entering retail’s golden quarter. It is always a really key period and we are really looking forward to putting our capabilities to the fore.”

When those capabilities are matched with such a clear passion for building up the people who make it all possible the halo of that golden quarter will extend beyond the festive shopping frenzy. Social commerce is here to stay, a shift which presents brands and agencies alike with significant opportunities for creativity and commercial growth. It’s all to play for.