Advertising Agencies Need to Make Things
Culture is shaped and influenced by those who create. Who submit a product into the world for consideration. More ad agencies seem to be realizing that they need “to get out of their chrome towers, mingle with the people and soak up the culture.”
The New York Times highlights several agencies that are branching out with their own products:
- Bartle Bogle Hegarty’s Zag division launched the fashion blog Mrs. O
- Brooklyn Brothers created Fat Pig chocolate and has a furniture line in the works
- The esteemed Anomaly established the Avec Eric website and TV series for chef Eric Ripert as well as recently launched music t-shirt store I/denti/tee
Canadien agency Taxi opened their own coffeeshop and Neverstop even set up a barbershop.
So what’s going on?
Advertising agencies have dabbled in side businesses for decades, but “inventing their own brand, not dependent on clients’ largess, is the big new thing,” said George Parker, an ad agency consultant and writer of AdScam, a blog about the industry. As the economy worsens and ad budgets tighten, “the creation of intellectual property and new products is something you’re going to see a lot more of,” he said.
But beyond just adding a new revenue stream during the recession, ad agencies need to do something. Is it that the big idea alone is no longer enough? It’s necessary, but it may not be sufficient, anymore.
4 Comments, Comment or Ping
Ida
Starting a small business in a great ecomony is challenge enough, but in a poor economy it can be catastrophic. What makes these ad agencies think they can succeed?
Jan 2nd, 2009
Ryan Moede
IDA – Thanks for your comment. Ultimately, I personally think these shops are creating their own products and companies more for the cultural engagement aspect than the bottom line – especially Neverstop and Taxi. Regardless, I think they all should be commended for taking some risk (especially in this tough economy) in continually trying new things.
Jan 3rd, 2009
Nick
I’m a big fan of this concept. We have so many talented people doing great work for others, that we’ve decided to make an effort to have them develop our own concepts as well.
We’ve created Poderator.com, Rayva.com, and some iPhone snow report apps. It’s been a great experience for us!
Jan 6th, 2009
Ryan Moede
@Nick – Thanks for your input! I think agencies should be all over the iPhone app development – good to see you’re on it.
Jan 7th, 2009
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