Are advertising agencies gradually evolving into entertainment studios?

The advertising game is no longer about the 30-second spot. It never really was, but now, more than ever, agencies are stepping into the territory that was once reserved for production houses and film studios. Think long-format branded films with A-list directors, star-studded casts that would put award shows to shame, and budgets that make even mid-budget Bollywood films look like pocket change.

When Ching's Secret commissioned director Atlee (known for films like the Shah Rukh Khan-starrer ‘Jawan’ and the Varun Dhawan-starrer ‘Baby John’) to helm a branded film featuring Ranveer Singh, Bobby Deol, and Sreeleela, the industry collectively raised its eyebrows. Was this advertising or entertainment? And does the distinction even matter anymore?

The evidence is mounting. Flipkart's Big Billion Days 2025 campaign brought together a whole pack of celebrities, influencers, and industry leaders, including Amitabh Bachchan, Alia Bhatt, Sreeleela, Farah Khan, her celebrity chef Dilip, boAt's Aman Gupta, Jannat Zubair, Sakshi Shivdasani, Yashraj Mukhate, and comedian Anubhav Singh Bassi in a three-minute spectacle that Leo Burnett crafted to feel less like a sale announcement and more like a mini Bollywood crossover. The campaign also featured mathematician Dr. RD Sharma in a separate piece by Talented.Agency, cleverly turning math textbook nostalgia into marketing gold.

The scale isn't just growing, it's exploding. And with it comes a fundamental question: are agencies morphing into entertainment studios, and if so, what does that mean for the core business of building brands?

The entertainment pivot isn't new, but the scale is unprecedented
Rohit Mukherjee, Executive Creative Director at TBWA\ India, is quick to remind us that this isn't entirely uncharted territory. "Long form storytelling and branded entertainment experiences that go beyond the traditional 30-second spot are not something new," he says. "It might be in vogue with increasing digital spends on connected TV than linear TV, but BMW had done it way back in 2001 with the film series 'The Hire’. Imagine this when YouTube only came into existence somewhere around 2005."

The BMW films Mukherjee references were groundbreaking for their time: slick, cinematic shorts directed by the likes of Ang Lee, Guy Ritchie, and Wong Kar-wai. But what's happening now feels different. The budgets are bigger, the distribution is wider, and the frequency is higher. Ching's Secret’s 'Agent Ching Attacks' isn't a one-off experiment; it's part of a growing pattern where brands are commissioning content that audiences consume like they would consume films, not advertisements. The production reportedly involved a 1,200-person crew, A-list technicians, heavy VFX work, and multi-location shoots. In fact, the campaign generated 250 million views in five days with completion rates touching 98-99 percent. These are numbers that would make any feature film producer envious.

But here's the catch: While spectacle sells eyeballs, does it sell the brand? Mukherjee has concerns. "Should agencies remodel themselves completely as entertainment studios? That would be a strategic misstep because the core value proposition of an agency lies in being custodians of brand strategy; the 'why' behind a proposed entertaining piece. It'll be fruitful to nurture a culture that offers this perspective to brands." His point is sharp and relevant. There are production houses, content studios, influencer marketing agencies, and boutique 'social first' creative shops already making sleek and stylized content, but it lacks the memorability that makes the brand, a brand. "Audiences remember the entertainment, but not necessarily the brand's message. This is because such structures traditionally lack strategic capabilities that an agency has."

The business model is shifting, fee structures are following
Aayush Bansal, Co-Founder and Director at Black Cab, sees it differently. For younger, nimble agencies, this isn't a threat; it's a latent opportunity. "Agencies like ours are morphing themselves into mini-studios or production houses. Media is evolving, and the mainline agencies are still thinking on the lines of a 30-second TV spot," he says. "For younger agencies, this poses a latent opportunity, we must build capabilities beyond script, storyboard, and edit. Think production-planning, long-form storytelling, and even distribution strategy."

Bansal's take highlights a generational divide in the industry. Legacy agencies, with their entrenched processes and traditional revenue models, are slower to pivot. Meanwhile, agencies like Black Cab are building infrastructure that allows them to compete not just on creative chops but on production capability and media distribution. "In practical terms, our business model shifts. Fee structures tilt toward project-investment with big up-front costs and shared risk, and we increasingly market ourselves not just as 'creative agencies' but as 'content houses’," Bansal explains. "So when you pitch, your value lies in marrying brand truth via storytelling with production and media distribution."

But Bansal also cautions against spectacle for spectacle's sake. "Agencies will have to be careful to make sure these stories and narratives tie into the larger brand truth, or else they will end up with spectacle over substance." He lays out three guardrails for success:

First, clarity of brand truth. Using Ching's as an example, he points out that "the 'Agent Ching Attack' stands for flavour, spice, fun, irreverence and has been part of Ching's DNA for years. Doubling down on this makes sense, and it must weave through the story and visuals extensively. The spectacle should serve the product, not overshadow it."

Second, scene to behaviour linkage. "Film-style storytelling has to tie into measurable business outcomes. So, after the big action scene, the viewer should know what the product does. For example, Ching's Schezwan Chutney is a flavour bomb and the customer must feel motivated to buy or try it."

And third, platform and audience awareness. "Cinematic pace works offline and in theatre, but in digital feeds you need hooking moments in the first 5 - 10 seconds, share-friendly shots which can be down-cut, and a clear CTA for whatever comes next (social, trial, store). So your film has to be modular: full-length for brand build, snippets for social, and triggers for conversion."

Entertainment is the strategy, not just the output
Tusharr Kumar, CEO of OML Entertainment, takes a more fundamental view. For him, this isn't about agencies transforming into studios but about recognizing that entertainment has always been the job. "I'd argue that behaving like an entertainment studio isn't new. At OML, we've always looked at every creative brief as an opportunity to entertain because when something entertains, it stays with you. That's been true since our earliest work in branded content, and it's even more important now in a world of constant content clutter."

Kumar's philosophy is refreshingly straightforward. "Does it change the way we work? Absolutely. But not in a way that breaks the agency model; it enhances it. Our internal creative agency runs with a simple philosophy: bury the boring. That means no matter how tight the brief or serious the messaging, we look for ways to make it memorable. This could be through sharp writing, visual flair, or even just a different tone of voice."

What OML has done, particularly with their work for Canva India, is build what Kumar calls a "brand as creator" framework. "Brands should start showing up like creators. When brands are flexible, plugged into the zeitgeist, fluent in platform; the work starts to feel less like ads and more like culture. That unlocks more powerful storytelling, and it gets people to care. Isn't that the whole point?"

The Canva India campaign 'Dil Se, Design Tak’ is a case study in this approach. Developed by OML and now in its second edition, the campaign spans multiple regional languages including Tamil, Telugu, Malayalam, Kannada, Marathi, and Bengali. It features heartfelt storytelling with characters like Jaadu Dadu, a magician played by Dalip Tahil, who reconnects with his daughter through design. The films integrate Canva's AI-powered tools like Magic Design and Photo Background Remover, but they never feel like product demos. They feel like stories. "We didn't just produce a bunch of high-gloss films and hope they land. We worked backwards from the audience. What would make someone stop and watch? What would give them a reason to share it? At the same time, how do we land Canva's proposition of 'Dil Se Design Tak' without it feeling like a hard sell?" Kumar explains.

The answer lay in platform-native choices. "Storytelling that fit the visual grammar of Instagram and YouTube, characters that felt like people you knew, and a tone that made the brand feel like it belonged in the feed. In doing that, we hit the brand's marketing goals and gave people something they genuinely enjoyed. That's the balance." India is Canva's fourth-largest market globally, with 666 million designs created in 2024 alone, and OML's campaign has helped position the platform not just as a tool, but as a companion for everyday creativity. The campaign's distribution across TV, cinema, and digital platforms, combined with creator partnerships and community activations, exemplifies how entertainment thinking can scale brand narratives without losing strategic focus.

Culture-first creativity, but with craft at the core
Sandipan Bhattacharyya, Chief Creative Officer at .Monks India, offers a more philosophical take. "Creative agencies playing at the intersection of entertainment culture and brands is not a new thing," he says, echoing Mukherjee's historical context. He cites BMW's 'The Hire' from Fallon in 2001 and Intel and Toshiba's 'The Beauty Inside' in 2012 as early examples of the playbook. "Agencies mentally moved on from the '30-sec spot' decades ago."

For Bhattacharyya, the conversation isn't about whether agencies should produce entertainment, it's about how they do it. He says, "Creatively, branded entertainment needs to be 'culture-first' while still ensuring the brand message is integrated seamlessly. That requires sharp creative strategy followed by loads of craft in storytelling." He's careful to separate ambition from ROI. "Of course, clients are better suited to deliberate on ROI, but you can't approach branded entertainment with the mindset of a performance campaign! It's usually driven by the ambition to make something epic that strengthens brand preference and love."

Kumar echoes this sentiment when he addresses the supposed tension between brand outcomes and entertainment value. "We don't really see these as exclusive to each other or as competing forces. Great strategists and creatives already bake in business outcomes, platform customisations, and build to engage their audiences. When it comes to branded entertainment, cinematic storytelling and scale differ – can be made to entertain on reel or on CTV."

This mindset is crucial. Branded entertainment isn't a direct response. It's brand building at scale, designed to create preference, affinity, and cultural relevance. The metrics are different. The timelines are longer. And the risk is higher. But when it works, it works spectacularly. The Ching's campaign didn't just get views, it generated conversation.

A hub-and-spoke model might be the way forward
Mukherjee proposes a solution that balances both worlds. "In my opinion, the way forward could be a hub and spoke model wherein agencies shape the brand narrative by establishing it through foundational brand communication, including traditional formats like the 30-second spot. Collaborations with specialized content partners to develop long-form entertaining pieces can be explored to build on that narrative."

This model makes sense. Let agencies do what they do best: strategy, brand narrative, and foundational communication. Then partner with studios, production houses, and content specialists to scale that narrative into long-form, cinematic experiences. "The most successful branded entertainment experiences will emerge from agencies that can walk both worlds; presenting clients with a cohesive vision that includes a strategic brand narrative alongside compelling long-format plotlines, each justified by clear KPIs focused on tangible outcomes," Mukherjee adds.

It's a pragmatic approach. Agencies don't need to become full-fledged studios. They need to know when to bring in the heavy artillery and how to ensure that the artillery is firing at the right target. The partnership model also mitigates risk. Big productions require big budgets, and not every client can afford to bet ₹150 crore on a single piece of content. But by collaborating with specialized partners, agencies can offer clients scalable solutions without overstretching their own capabilities.

The cultural and business implications are profound
The shift toward entertainment-style content has implications that go beyond creative ambition. For one, it changes the talent profile agencies need. Directors, cinematographers, VFX artists, and sound designers aren't traditionally agency roles, but they're becoming very much essential. Agencies are hiring from film schools, not just design schools. They're investing in post-production capabilities, not just concepting capabilities. This evolution requires capital, infrastructure, and a willingness to take on project-based risk that traditional retainer models don't accommodate.

It also changes the client-agency relationship. When you're pitching a big-budget production, you're not just selling an idea; you're selling a vision, a cast, a director, a distribution strategy, and a measurement framework. The conversation moves from "Can you make an ad?" to "Can you make an event?" And events, by definition, are harder to predict and harder to control.

There's also the question of measurement. How do you justify a ₹150 crore spend on a branded film? Views are one thing, but what about brand lift? Purchase intent? Market share? The metrics need to evolve alongside the formats. And clients need to be educated on what success looks like in this new paradigm. As Bhattacharyya notes, you can't approach this with a performance mindset. But you also can't ignore performance entirely. The balance is delicate, and finding it requires sophistication on both sides of the table.

The verdict: evolution, not revolution
So, are ad agencies evolving into entertainment studios? Yes and no. The best agencies are expanding their capabilities, building partnerships, and learning how to tell stories at a scale that commands cultural attention. But they're not abandoning their core function as brand stewards. If anything, the shift toward entertainment-style content makes that function more critical, not less. Because when you're spending that much money and generating that much attention, the brand better not get lost in the spectacle.

The future probably doesn't look like agencies becoming studios. It looks like agencies are becoming orchestrators by pulling together talent, production, media, and strategy into cohesive, culture-defining moments that build brands and drive business. Whether it's an eight-minute Atlee film or a three-minute Flipkart extravaganza, the principle remains the same: entertain, yes, but never forget why you're entertaining in the first place. The brand is still the hero, even if Ranveer Singh is on screen.