‘Necessity drives innovation’: Despite the economic downturn, upstart agencies are finding their way to launch

October 21, 2020

By Seb Joseph

Problems create entrepreneurial opportunities, and 2020 is not lacking problems.

This is especially true when it comes to advertising. From New Commercial Arts, the agency set up by the team behind the lauded Adam & Eve DDB, to Other, the spin-off from independent agency Mother, agencies are launching despite — and as a result of — the pandemic.

After all, not every company has shredded its ad budget. In fact, there are many, from telcos to delivery services, doing well — and subsequently doing more marketing. But in doing so, those businesses are looking for faster, cheaper, and innovative advertising the more established agencies can’t always offer — not least in an economic downturn.

“Necessity drives innovation as they say and recession can create problems that need different solutions that marketers aren’t getting from their existing agency suppliers,” said Miles Welch, partner at M&A advisers Waypoint. “These new agencies are reacting to that need.”

As they react to those opportunities, upstart agencies are also able to focus 100% on new business, unlike their established counterparts.

Take Other. The 14-person agency launched earlier this month with several new clients including letter-box flower delivery service Bloom & Wild, home appliances business Grundig and Jaguar Land Rover’s car rental service The Out. As people continue to social distance from each other, Other’s clients are increasingly essential to how they stay connected as well as enjoy home life during this era of social distancing. They have recognized that as bleak as the coronavirus is, it has presented an opportunity to gain an advantage that might last for years.

“There’s never been a more important time for independent creative agencies to be helping brands,” said Other’s business leader Paulo Salomao.

It goes some way to explaining why Vodafone opted for New Commercial Arts, a 20-person agency that launched in May, to remold its global brand over one of the more established networks it has worked with over the years. That there’s an upstart agency now shaping the image of one of the largest advertisers in the world sums up the trial-by-fire prospect of starting a business when the economy is shot to pieces. In Vodafone, New Commercial Arts have an injection of momentum particularly important in the early stages of a start-up business.

Back in May, the chances of the agency making an immediate splash were far from a foregone conclusion. Despite having two of the most successful entrepreneurs — in Murphy and David Golding— in the agency business, New Commercial Arts launched without any clients.

Now, it has bank Halifax and media trade association the World Out of Home Organization on the books alongside Vodafone. The agency’s headcount has expanded as a result. Two creatives — Mary Johansen and Kenny Meek — were hired from TBWAMedia Arts Lab earlier this month, while planner John Blight joined from Adam & Eve/DDB last month.

With the larger agency networks having to make employments cuts throughout the year, there’s a larger pool of talent for start-up agencies to …read more

Source:: Digiday

      

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