How LERMA/ Is Spreading Its Multicultural Roots for the Diverse Future of American Marketing

Founded in 2009 by Pedro Lerma, LERMA/ is “the agency for the new general market,” says Francisco Cardenas, principal of digital strategy and innovation. Describing the modern market as “far more diverse and nuanced than at any other point in American history”, he explains that the fully-independent, lead agency based out of Dallas, Texas has its multicultural roots and was originally conceived as a Hispanic marketing agency.

Quickly evolving to cover the wider, diverse cultural tapestry of the United States, LERMA/ today combines multicultural intelligence with creative firepower - enough to create three TV spots for this year’s Super Bowl. Led by Pedro and his combination of Texan upbringing, Mexican heritage and drive for innovation (having led ClickHere consultancy, founding LERMA/ and now starting YouNite Media, a media-buying boutique) the agency is excited for what lies ahead, while still remaining “rooted in multiculturalism”.

Speaking to LBB’s Ben Conway, Francisco - with additional comments from both Pedro and principal of partnerships, Taylor Smiley - says that the company isn’t defined by the language it uses, the brands it represents or the media it uses. Instead, they draw an identity from true consumer understanding and their experiences in the digital marketing world, where they connected with a diverse range of customers beyond the traditional, pre-defined “swim lanes” of the industry.

Above: Francisco 'Pancho' Cardenas

“The United States will become a majority multicultural nation in less than 20 years,” says Taylor. “The impact of this population trend is profound – particularly for brands and agencies – and LERMA/ believes that clients deserve a partner with the cultural intelligence to ensure they resonate.” As a fundamentally multicultural agency, LERMA/ takes a “deliberately diverse approach to staffing”, and has assembled a team that reflects the recent demographics of the US almost exactly, giving them added confidence in the diverse voice they provide for clients.

Recently, the agency was named as an ‘AdAge Small Agency of the Year’ for a second year running, this time in the 76-150 group, and Francisco says they “could not be prouder” of the work, recognition and talent that has made it possible.

“Growth is something to be celebrated, but it is tricky… We do several things to keep our philosophy and our momentum, and it is a top priority of the leadership team at LERMA/.” He continues, “Our philosophy is directed but always evolving - we are all constantly creating the agency we want it to be, and we’re ultimately supported by the leadership of a very well-defined mindset. That starts with how our founder Pedro Lerma is, not only professionally, but as a person. His way of being and living trickles down and when you get people who care about the work and know how important they are for the wins, things keep on moving forward in a positive way.”

Above: Pedro Lerma (L) and Taylor Smiley (R)

Honing this stalwart culture, LERMA/ has cultivated several long-term clients, including The Home Depot (12 years) and Avocados From Mexico (eight years). “The Home Depot is one of our founding clients and we could not be more honored to serve them for so many years,” says Francisco, “We have created a team dynamic between us that has helped us grow in experience and as markets evolve, we’ve been able to figure out how to solve problems within their business vertical that produces results and builds the brand.” 

As well as seeing The Home Depot exceed its business projection goals quarter over quarter, he says the agency is especially proud of the growth it’s helped Avocados From Mexico achieve - now amounting eight Super Bowl campaigns, owning over 85% of the total market and a having one of the most memorable jingles in the States. “We have been a part of the vision of the team, and as agencies have come and gone, LERMA/ has been present and was recently named the brand agency of record - evolving our relationship from just leading all digital responsibilities including social media. The innovation and marketing exploration we’ve experimented with Avocados From Mexico has made us the agency we are today, so we are grateful for them as clients.”

While taking Avocados From Mexico to the Big Game eight times hasn’t necessarily been a “Hispanic strategic play”, Francisco says that, as a multiculturally rooted agency that understands the origin and history of the fruit in the US - the campaigns have served as approaches to tap into “specific cultural nuances and opportunities” that go beyond solely the Hispanic consumer potential.

“We approach diverse, niche culture groups with strategy and sensitivity,” he adds. “We could argue that any minority in the US, at some point, has been underserved in some way. We also recognise that Hispanic culture gives a lot to the general culture of the country, but Hispanics have also evolved in this country in their unique way. For example, introducing Bourbon to Hispanics with our brand Maker’s Mark, or the work we did for Ocean Spray which does try to specifically address a specific opportunity in the space.”  

Another significant area of focus for LERMA/ is its “fast digital adoption philosophy”, which has led the agency to push forward in the worlds of AI and e-commerce.

This philosophy permeates through the entire team, creating a cycle of innovation that allows them to experiment quickly and leverage technology, by allowing clients to explore new spaces. “Right now we are very curious about how AI will not only play a role in how we tell brand stories, and build brand digital experiences, but also how this will enhance the business models of our clients in their operations.” 

Continuing to test these new technologies, the agency has discovered white spaces that have allowed LERMA/ to contribute to the development of these technologies. As an example, says Francisco, LERMA/ saw a lack of diversity in AI image-generated models - and so, directly contributed to the tool’s improvement in response. “Our teams decided to act. Using Stable Diffusion, an open-source artificial intelligence learning model, we fed the system by adding the diversity of how the staff of our agency is composed.”

Spearheading both cultural diversity in American marketing and the use of emerging technologies, LERMA/ continues to drive the future of the industry from its home in the Dallas-Fort Worth area - a market that Francisco says is “becoming a powerhouse”. The agency is now neighbours with 24 of the Fortune 500 companies’ headquarters, and the city ranks in the top two for both real estate investment and sports-related business nationwide.

“That thriving economy, combined with 13 local universities, makes it a market that not only attracts talent but breeds it. So, while we have great respect for our agency peers in the coastal cities, we know we have something special here in Texas, and find more and more clients wanting to experience those benefits for themselves.”

Looking ahead to this promising future for the company, he adds that the agency’s current primary challenge is to align its growth with the ‘Creativity For Good’ mantra that acts as LERMA/’s North Star. Along the way, the company will continue navigating the cultural nuances of an increasingly diverse nation and the integration of new technologies - all to ensure clients' needs and consumer experiences are being met and enhanced. 

He concludes: “Optimism fuels our journey forward.”