AltaCircle Drivel

There has been lot’s of discussion in the creative agency world about the impact of digital marketing and how agencies should respond.  It appears every agency from advertising networks like BBH to traditional DM shops like OgilvyOne to creative hotshops have put “Digital at the Heart of the Agency.”

Only this past May Alastair Reid reported in Campaign a reasonably balanced article about the increase in digital awards being won by traditional agencies, and brought out the classic Goodby turnaround in the US a few years ago.

But whose really been winning?

Looking at the 2008 NMA Top 100 that was just released last week, we see that Digital agencies have seen another year of solid growth — averaging 20% across the list.  In his introduction Michael Nutley also makes a balanced argument for the state of the industry.

But maybe we are being too analytical — if one uses the simple measure of headcount over the last 5 years, we can see where the growth has been and inferr that this represents shifts in revenue.

The top digital agencies have had an amazing run since 2003.  I take 2003 because it is 5 years ago and it was solidly after the collapse in 2001-2.  From ad hoc conversations I think that agencies like AKQA have gone from say 120 in 2003 to over 350 today — that is 191% growth in London alone.  Dare was probably about 60 people in 2003, and now reports having 174.

I’ll need to do more digging to get good numbers but here is a basic table I’ve pulled together from industry articles and league tables and rough memory.  It will be interesting to check in another year’s time.

They say blogs are written for the blogger — I know I’m working too much and neglecting my blog when all I have is “ego posts.” That said, if you get an ego moment might as well share it.

Marketing Direct - Power 100: Top 10 Digital DM Players

Marketing Direct’s survey of the 100 most powerful people in UK direct marketing.

With recorded pre-tax profits of almost £6m in the 12 months to March 2008, the company has achieved a lot in a short space of time, winning Digital Direct Marketing Services Supplier of the Year 2007 at the Connect Awards.

2. PETER RILEY, FOUNDER AND CREATIVE PARTNER, 20:20 GROUP

Last year, Peter Riley ranked fourth in our list of 10 digital direct power players. Since then 20:20 Group has continued to innovate, and has been rewarded for its efforts. Laughing at comments about his “healthy ego” (”Well, my Mum says it’s true …”), Riley and his group has been courted by many large agencies in recent months.

Over the past year, 20:20 has won a place on the COI roster and led the digital strategy and creative work for the Department for Children, Schools and Families’ teenage pregnancy and safe sex campaign. It also won the brief to launch the Terminator TV show on Virgin 1, while its work for PlayStation has notched up awards including a Cannes Lion and two DMA Golds. Meanwhile, Riley converted a Grade 2-listed East End church to house the company, and says he has currently got his eye on another property.

3. MARK PATRON, CHIEF EXECUTIVE, RED EYE

Veteran direct marketer Mark Patron is proof that data geeks can make the best digital gurus. As CEO of online marketing company Red Eye, he is championing the integration of traditional DM principles with digital approaches. His passion for bringing measurability and accountability into the online arena was pivotal in Red Eye sales reaching £4.4m last year, up from £1.7m in 2005. Red Eye was also listed in The Sunday Times’ Tech Track 100 league table in 2007, confirming its position as one of the fastest-growing new technology companies in the UK. After 14 years at Claritas, now Acxiom, and having launched DMjobs.co.uk, Patron always has his finger in numerous pies and is described as a “master of reinvention” and a “serial entrepreneur” by peers. “He just keeps coming back for more,” says one.

4. JOHN BAKER, JOINT MANAGING DIRECTOR, IRIS DIGITAL

There is no doubt that John Baker is a heavyweight in the world of digital DM. Previously head of digital at OgilvyOne, and now joint MD of Iris Digital, his unassuming manner belies enormous industry knowledge and know-how. At OgilvyOne, Baker was a member of the management partner team that won Campaign’s Direct Agency of the Year - in large part due to its strength in digital marketing. Not content with routinely winning business from digital pure-plays, he oversaw the introduction of an email marketing group and the hiring of Skip Fedura, ex-director of European operations at Digital Impact, to lead the initiative. Baker says he was attracted by Iris’s “entrepreneurial nature” - and that he is looking forward to “big growth”.

In classic fashion in the first week you start a new job, there is a pitch.

Can’t say it was a wholly digital pitch but it was more then digital in parts.

And we won which is always great.

It was also a case of seeing the power a great copywriter can bring to a creative solution.  So often in digital agencies “creative” is thought of as “design.”  It makes sense when you think of the importance of interface and craft in good digital work, but none the less when you see a strong idea with fantastic writing it shows.

Now the real fun begins.

http://www.brandrepublic.com/News/790246/Iris-Worldwide-lands-20m-Hertz-Europe-account/ 

http://www.marketingweek.co.uk/cgi-bin/item.cgi?id=59978&d=258&h=262&f=3

I’ve always been impressed by the information that Dave Balter and the team at BzzAgent share through their BeeLog.

It makes sense — no confidentiality is broken and it allows people that are evaluating the company (clients, potential employees, partners) to educate themselves about their business and be smarter when working with the company. It also broadens the number of people that can give their input into what the company is doing — input which generally makes the company smarter.

It also a great tool for management — a forum for instant public recognition. Whether putting someone’s “name up in lights,” or “naming and shaming,” a company blog is a sort of a light-weight version of the more traditional atomic bomb, the press release.

Here is a great example BzzAgent did thinking about how they are working with their advisory board.

Basically the team at BzzAgent inserted a joke slide in their advisory board presentation entitled “Investor / Advisor Litigation Update.” Clearly a title that should get peoples’ attention. And of course under half noticed the slide or commented on it in their feedback to the company.

It is the bane of the world we’ve created that no one has time (or being busy has become fashionable?) and that business people don’t read, they only scan. Pretty soon we’ll need comment buttons on the bottom of e-mails and powerpoint presentations where people can indicate they actually reviewed them.

Advisors Advising

Posted by Dave Balter

August 21st, 2007

Since early 2003, BzzAgent has had an Advisory Board.

In the early days, before we had an official Corporate Board, we met a few times and we worked with a number of individuals to help us with specific projects such as patenting our WOM process and the best approach to certain partnerships. But as the company accelerated, and we’ve added board members, executives and staff, it’s been immensely difficult to utilize this group of experts. Individually, each would gladly help if we reached out, but as a whole this cluster is relatively distant. [more]