Welcome to the second episode of “Why Advertising Is Shifting to Local,” where we shine a light on leaders changing the face of local TV for the better.

This week we catch up with Vica Founder and CEO Michael Shields about Shields’ tech-driven creative agency and how it helps local advertisers leverage video advertising by overcoming traditional barriers such as high production costs and ineffective media placement.

Summary: Vica uses generative AI and programmatic technology to streamline the production process and target media buys efficiently. Shields explains that local businesses benefit from television advertising as it effectively reaches new customers and enhances their brand storytelling. Currently a managed service, Vica guides businesses through the ad creation process, with plans to potentially offer a self-service tool in the future. He anticipates a significant shift in local advertising spend towards television, predicting a market growth to $16 billion.

Alan Wolk: Okay, so let's start off. Tell me your name and what you're doing these days.

Michael Shields: I'm Michael Shields, the founder and CEO of a company called Vica. Vica is a next-generation, tech-driven creative agency working with local advertisers.

Alan Wolk: And what do you actually do for them?

Michael Shields: The thesis for the company is that local advertising in the United States is a $162 billion market. By contrast, TV is around $70 billion. However, only 4.2% of that $162 billion is currently spent on video. Historically, local advertisers haven't invested in video for two main reasons: they couldn't afford the cost of a commercial, and they couldn't effectively place the media. We solve these issues by leveraging technology for production, using generative AI and other tools to streamline the process, and programmatic technology for targeted media buys with no waste.

Alan Wolk: Can you explain how the production process works?

Michael Shields: Many local businesses don't have assets like polished logos, taglines, or customer value propositions. We start by scraping everything available online about a business, including their website, Yelp page, and social media presence. We use generative AI to evaluate and fill in gaps in their brand assets. This structured data is then used to create storyboards and scripts for commercials. We tokenize the storyboard to generate images and use frame interpolation to turn these images into shots, creating a collection of shots for the commercial.

Alan Wolk: Is there a person involved in this process when they sign up?

Michael Shields: Yes, currently, the whole service is managed. We have people guiding the businesses through the process. In the future, we might offer a self-service tool, but for now, it’s a managed service.

Alan Wolk: What are the advantages for a small business to go on TV?

Michael Shields: Television advertising has always been the number one way to find new customers. It allows small businesses to tell their story in a more articulate way and reach new customers effectively. When businesses see their ads on TV, it has a significant impact.

Alan Wolk: Do local businesses understand that CTV is real TV?

Michael Shields: Yes, when they see it in their living room, they get it. We launched a soft launch in December and ran various end-to-end campaigns. The feedback has been positive, with businesses seeing results from their TV ads.

Alan Wolk: What’s next for Vica?

Michael Shields: We see a significant reallocation of local advertising spend towards television. Technologies are emerging to enable local businesses to create commercials. We expect a shift in the media mix to include more TV advertising, potentially growing the market to $16 billion. Companies like ours will continue to help local businesses leverage this opportunity.

Alan Wolk: Why choose Vica over other self-service solutions?

Michael Shields: Many small businesses need help creating and managing ads. They can't do it themselves because they're busy with other tasks. That's why we've launched Vica as a managed service, providing full-service solutions so local businesses can see results without lifting a finger.