The Battle of the Big vs Small Agency

When creative directors in the large agencies started to leave to start their own shop, there was an air of suspicion around whether the small shop would succeed or not.

 But now the model has been proved successful beyond doubt. The small agencies started by chipping little pieces from the large agencies.  The pieces at first seemed so small that the big agencies disregarded them.  But over time it was not only a drain on their revenue and increasingly a threat on their reputation as well.  The big agency is known to move slowly ( like anything that is big ) largely because of processes and red tape. In contrast the small agency is lithe, quick, and capable of coming out with fresh new innovative ideas. 

 Increasingly the independent small agency is disrupting the earlier dominance of the large global network agency. Is this just a flash in the pan or a trend? I don’t think so. Covid has already changed our working styles, the democratisation of technology and the addition of AI as a tool for ad agencies is quickly closing the gap between the small independent agency and the network agency.

 In the past one of the factors that separated the network and independent agency was access to market and advertising research. Often studies from McKInsey, WARC and the rest were outpriced for the independent agency. But this also is changing. With cloud based platforms, agencies are able to access much more than earlier years with platforms like Kaggle, Google Data Set Search, World Bank Open data and others.

 Another disadvantage in earlier years was that the independent agency found it more difficult to execute mass media campaigns to mass audiences. The advent of digital has changed all that.  Media fragmentation and proliferation of digital platforms has equalised the media opportunities of the independent small agency vs the big network agency.  Platforms like Google Ads, Meta Ads Manager, LinkedIn Campaign Manager, TikTok and others are available to all, creating a more equal media environment for agencies.

 Considering that the small independent agency broke out with a creative director at its helm, is creating another advantage for the small agency.  Increasingly over the years clients are demanding more mind-space with senior leaders and especially senior creative leaders.  This becomes easy for the small agency, and it comes naturally to them.  The large network agency has to strain to provide access to their senior people.

 So take a look at the client lists of the small independent agency. Small agencies can win big clients.  You won’t be surprised to notice that they boast of working with the largest companies in the world like Unilever, LG, Samsung, Kellogg’s, Nestle, Danone and the rest. The small agency is also more geared to handle individual projects and executional work that the network agency finds tiresome.

 Clients are increasingly looking at innovative thinking, not size of agency as an advantage.  As the advertising industry evolves, the small independent agency is pushing the boundaries of creative and ideas.  After all you might be working with an agency that has 200 people, but finally the people working on your account are just going to be 6-7 people. So the other 193 are really irrelevant.

 Typically the small independent is created by a break-away creative director from a network agency who comes with a strong vision of what advertising must be.  He quickly forms a cultural glue for the agency that his employees adhere to. So culturally the small agency is stronger than the network agency.

 I always worked with the big network agency so I am watching this new shape of the advertising industry evolution with interest. 

 Think small.  The world is changing!

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This article first appeared on mxmindia.com on 29 August, 2024