Advertising
Age reported on a “growing trend” whereby small independent creative
agencies are winning big major accounts.
A closer
look leads to wondering if the phenomenon is a “growing trend” or simply
business as usual.
After all,
it appears that accounts continue to be assigned via Corporate
Cultural Collusion and cronyism, whereby past relationships prompt
advertisers to award work to professional pals, sans a formal competitive review.
The scenario
presents other issues:
• Minority-owned
firms—which are typically small, as well as segregated into multicultural
marketing siloes—routinely get disqualified from pitching major accounts. The
excuses include the presumption that these companies lack the resources to
handle big accounts. Yet the Ad Age content shows small White advertising
agencies face no such restrictions.
• Minority-owned
firms can even be shut out when the account calls for cultural expertise, as
demonstrated by the recent Panda
Express pitch. The business landed with Opinionated, who hired a
multicultural shop to serve as consultants of color when the client mandated
understanding the Chinese American experience and perspective. This sly tactic—which
has forever been executed by White advertising agencies, especially for accounts
with government contracts—was identified as Prime
Redlining.
• When White
holding companies create small White advertising agencies to exclusively service
big accounts, the newly fabricated shops still enjoy priority status above any multicultural
marketing enterprises within the network.
In summation,
the “growing trend” could just be an offshoot of the persistent big problem known
as systemic racism in Adland.
Small
Creative Agencies Are Winning Major Accounts—Inside The Growing Trend
GM, Häagen-Dazs
and Liberty Mutual Insurance have recently turned to shops with fewer than 100
employees
By Ewan
Larkin
Small
independent creative agencies are having a moment.
While holding
company agencies are still the tried-and-true option for many marketers,
several creative shops with fewer than 100 employees are turning heads and
winning sizable accounts.
In the past
month alone, Preacher won lead duties for GMC, snapping up some business
from Publicis Groupe’s Leo Burnett, while Bandits & Friends won Liberty
Mutual Insurance’s creative account, replacing Omnicom Group’s Goodby
Silverstein & Partners. Meanwhile, nine-person shop nice&frank
scooped up Häagen-Daz sand Opinionated nabbed Panda Express.
As marketers
move more work in-house, some are turning to smaller creative agencies to work
directly with senior executives and move quickly, according to industry
insiders interviewed by Ad Age. And these shops are making changes, too,
implementing niche strategies to court prospective clients and tapping new
tools to help service them.
Marketers’
changing needs
Many brands are
now in-housing work they’ve looked to larger agencies for in recent years, such
as data, analysis and measurement, said Tom Denford, CEO and co-founder of
consultancy ID Comms.
The data
supports that theory: Some 30% of marketers said they moved more creative work
in-house in the last 12 months, according to a June report from Canva
and trade association MMA Global. That survey found 31% of surveyed marketers
plan to move work in-house in the next year.
But brands
still cannot internally replicate agencies’ steady “heartbeat of passionate
creativity,” and marketers aren’t concerned about the size of the shop that
helps meet that need, Denford said. (Nearly two-thirds—61%—of respondents in
the Canva report said outsourcing was better for creative quality.) Small
independent agencies are also set up to produce robust creative work, he added.
“If you run
your own creative agency, or you join a small independent agency, you will
absolutely have more freedom to work in the ways that they want, because it's
going to be privately owned,” Denford said. “You can be a bit more provocative.
In fact, you probably push your clients to be a bit more provocative.”
Some holding
company agency executives, however, said that a broader breadth of resources
and talent allows them to better orient themselves around clients’ specific
needs.
“If a client
just needs a strategic and creative solution, we can deliver that. If they
would like the full scale of our capabilities through TBWA and Omnicom, we're
able to provide that as well,” said Ben Myers, North American chief marketing
officer at TBWA. “We can assemble the right team to solve the problem.”
Holding company
agencies are certainly still in demand. Earlier this month, AstraZeneca added
WPP to the global creative roster of its massive oncology business.
And Kenvue, the consumer health company that was spun off from Johnson
& Johnson last year, recently awarded creative work across select
brands to Interpublic Group of Cos.’ FCB and Omnicom’s BBDO while also
continuing to work with Stagwell’s Doner.
Why smaller
shops are finding success
Small agencies
are also in high demand because of their talent. Many of these shops are
composed of senior practitioners who voluntarily left holding companies or had
their roles cut, according to several agency executives who spoke to Ad Age.
“With these
smaller agencies, you’re not going to compromise on talent,” said Stephen
Larkin, chief marketing officer at Erich & Kallman, who formerly spent
seven years at IPG’s R/GA.
Some small
agencies are winning business due to relationships formed while their
executives worked at larger holding company shops. For example, Bandits &
Friends Co-Chief Creative Officers David Suarez and Danny Gonzalez previously
worked at GS&P, where they created Liberty Mutual’s recurring characters,
LiMu Emu and Doug. Nice&frank Chief Strategy Officer Graham North also
worked at GS&P, where he founded Brand Camp. Brand Camp has supported
Blackstone, which has also worked with nice&frank.
Consistent
access to senior practitioners is key, too, said Steve Boehler, founding
partner of consultancy Mercer Island Group. In smaller agencies, executives
“are going to work on the business” and, on a daily basis, know “what’s going
on in that piece of business,” he said.
Rachel Jaiven,
head of marketing for Häagen-Dazs U.S., which considered holding company
agencies in its recent creative review, said the brand was looking for a
relationship where it could work directly with strategic senior leaders, and a
team that could be agile.
“We’re a huge
brand … but it’s a small core team that’s making decisions, and we need to have
an agency that understands that and can move quickly with us,” Jaiven said,
adding that speed can sometimes be an issue with larger shops.
Several indie
agency executives told Ad Age their senior leaders actively support clients’
daily business needs. But small agencies may struggle to maintain this strategy
as they add more clients, one holding company agency executive said.
“It comes down
to time. There’s only so many hours in the day,” this person said, speaking on
condition of anonymity. “We’re not factories … Our products are our ideas and
people, and you can only spread yourself so thin.”
Shops must work
to hire savvy talent to service clients’ businesses, which executives can then
help guide and train, according to this person. “That’s how agencies
scale."
How they’re
getting it done
Indie and
smaller agencies “have to offer something different than everyone else offers”
to get on marketers’ radar, according to Mark Figliulo, creative chairman and
founder at Fig, citing his agency’s machine learning-powered data tool
StoryData as an example.
Many agencies
are specializing or putting a unique spin on the agency model, but there
are other ways to stand out and win new business.
While pitching
for Panda Express, Opinionated enlisted cross-cultural agency TDW+Co, which has
experience connecting with Asian communities in addition to other
demographics—a move that showed “humility and self-awareness that you don’t
always find in the industry,” said Fabiola del Rio, the company’s VP of
integrated marketing communications.
Technology can
also make the difference. Bandits & Friends, which has 15 employees, uses a
variety of tools to help with administrative functions such as IT and
invoicing, said Courtney Berry, president and founder at the New York-based
agency.
“I think that’s
what allows us to operate in such a way that we can service larger clients
without necessarily getting to a point of being unwieldy,” Berry told Ad Age.
Nice&Frank, recently
named Ad Age’s 2024 Newcomer of the Year, aims to eschew the traditional
pitch process by inviting prospective clients to a “get-it-all-out
session,” a meeting where the agency creates prompts (and sometimes games) for
marketers to share their greatest concerns, biggest challenges and past
successes and failures.
“We ask frank
questions, provide hot takes and get genuinely vulnerable with them,” said
nice&frank President Tamera Geddes.
So far, so
good. The agency, which has worked with PepsiCo, MLB’s San Francisco Giants and
fitness brand Les Mills, said it hit $4.5 million in revenue during its first
full year in 2023.
“We, of course,
can’t always avoid the pitch process, but the honest truth is (that) once bring
our true selves (and this process) to the table, it creates an entirely new
environment and vibe that most of our clients simply want to get on board
with,” said Geddes.
Preacher is
extremely deliberate about the reviews it undertakes because of the sheer time
and effort required, said Krystle Loyland, co-founder and CEO of the Austin,
Texas-based agency.
“We’re doing very few pitches per year, and
they’re ones that we really believe we have a right to win, and ones that we
think we can uniquely solve for better than anybody else, because we need that
kind of confidence to be able to win these,” Loyland said. “It’s less about big
versus small … but just how intentional the agency is about these choices.”