Why I Started a Small Advertising Agency

Ideas and Clients -- Not Process -- Should Be Central to Creativity

Posted by Avi Dan on 06.08.09 @ 04:00 PM


Avi Dan

On Monday I started an ad agency. Just what the world needs now.

It's called Darling, and it had nothing to do with me wanting to learn how to wire a small network of computers and manage a server.

I started it with two brilliant partners. Jeroen Bours was chief creative officer of Hill Holliday in New York, who together with Ernie Schenck created the "Responsibility" campaign. Before that at McCann, he and Joyce King-Thomas came up with a little campaign known as "Priceless" for Mastercard. And at Ogilvy, besides breakthrough work on AT&T Wireless and American Express "Open," he also was responsible for the "Beyond Petroleum" campaign for BP. Other than having a first name that is hard to pronounce and is often misspelled, Jeroen is one of the most impressive people I've met in 30 years in the business.

My second partner, David Hale, has an easier, even historic name. I worked with David on the P&G business at D'Arcy, where he was executive creative director and became P&G's first "copywriter of the year." He also had a basketball hoop in his office, and I never once was able to beat him at H-O-R-S-E. After creating award-winning work on Miller at JWT and Burger King at DMB&B, David subsequently left advertising and did what most agency people dream of doing -- he went Hollywood. He created and sold two kids' TV series to Nickelodeon, and a cooking show, "Cucina Amore," which is currently in its seventh season on PBS. David also has a feature-length comedy, "Dirty Monkey," in production with Sony Pictures.

So these were two good reasons to leave the sheltered world of big agencies and go on my own.

I don't think that there's ever a good time to start an agency. Or a bad time. What matters to me is finding the right partners and sharing a philosophy. I believe in great ideas and I believe that there aren't enough of them. I believe that the advertising business today is more about execution and technique than about ideas, and especially so since the emergence of digital advertising and social media. I mean, Twitter is not an idea. And content without an idea, whether short form or long form, is crap. My partners and I believe in ideas -- ideas that last. And we hope to attract clients who believe that ideas have the power to transform their business. A bit old-fashioned perhaps, but a timely sentiment at an age that American icons like GM are crumbling.

We have a second mission. We want to bring the client back into the advertising process, put him or her square in the middle and encourage honest collaboration. Collaboration leads to better insight and better results. But most agencies have been pushing their clients out of the process because of insecurity or arrogance. Big mistake.

Why do I declare my independence? Because I love this business to which I devoted the last 30 years, and I don't like what happened to it. Process replaced creativity, P&L statements replaced the passion for great ideas. I believe that this industry's salvation will be small shops like Darling, willing to experiment -- with new approaches, new ways to be compensated, hiring different kinds of people, rewarding them more attractively. Willing to take risks. I believe that clients will see the same passion in small shops that I see, and they will reward them. My epiphany about the way my heart will lead me came about a year ago, when Venables Bell, perhaps not a start-up but still a small agency, won the global business of Intel from a giant, McCann Erickson. All of a sudden it became apparent to me that distribution is displaced by clients' desire for ideas, no matter from what size agency they emerge.

Is this a scary move for me personally? Honestly, no. Not seizing the moment of opportunity would have been scarier. But I am realistic -- most new business fail in the first year. But I am emotionally committed to take advantage of an opportunity that so few of us get these days.

Remember the scene in "Field of Dreams" when Kevin Costner hears a voice that tells him, "If you build it they will come"? Sometimes you just to listen with your heart, not just with your ears. And, anyway, if we fail and starve, we can always eat the scraps from "Cucina Amore."

~ ~ ~
Avi Dan is an industry veteran who has worked at Berlin-Cameron, Euro RSCG and other agencies.

25 Comments

By JEFF | SAN CLEMENTE, CA June 8, 2009 04:38:22 pm:

Congratulations on taking the plunge!

Fun, Fear and Excitement await you.

One thing that does not await you is a field of dreams. "If you build it they will come" doesn't work for my clients or for yours. But you know that.

For those who aren't afraid of a concerted effort, this is the most rewarding of positions. (minus setting up the network, dropping off the mail and having to go out to buy batteries) But you know that, too.

Welcome to the adventure - Wrap your arms around it and hug it like a bear.

Best and success,
jeff@swiftmedia

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By jdefeis | New York, NY June 8, 2009 04:58:26 pm:

Good luck, Darling.

Yes, we're also hoping there's still a place in this business for ideas. "Use Twitter" is no more a response to client goals than are other "solutions" like "get buzz on Facebook" or "create a viral video", which became popular after the success of Subservient Chicken.

Great ideas will find their way to the right audience, and don't need to be pigeonholed by a particular delivery vehicle, nor should they be defined by that vehicle. I'm equally confident that our smaller agency size will continue to provide the opportunity to create breakthrough ideas.

Larson
Energy Garden Inc.
www.energygardeninc.com

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By thefounder | Pottsville, PA June 8, 2009 05:24:39 pm:

I started Yooter InterActive back in 2004, was laid-off from my job, my wife was expecting and I had a whopping $700 bucks to my name.

Now I have a dozen employee, most of our clients are fortune 100 firms, and gross profit of about a million a year.

I had to start my firm because honestly no one would hire me. I knew I was right about the direction of the economy and advertising altogether, it was just impossible to tell these addicted to print and TV executives that they were wrong.

I am proud to announce that most of those holding companies that refused to hire me 4 years ago now have to report to me prior to making any changes on the client site... or me having the client drop them entirely if they are not understanding how SEO takes precedence over non-spiderable single file navigation flash.

Evidently they thought I was an outsider and have no place in their advertising world, now I'm sort of their boss as none of the holding companies have yet to grasp SEO or Social Media as a near complete advertising platform.

But the scary part is their clients do... and hence why our firm is being assigned to oversee their work.

- Roger
CEO Yooter InterActive

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By caprityme | SAN FRANCISCO, CA June 9, 2009 12:40:37 am:

Mr. Dan, good for you. And good luck to you and your partners.

I hate to rain on your parade, but here goes. Starting an agency based on ideas -- not process, technology and the power of size --is nothing new. Ad Agency entrepreneurs (myself included) have always done that.

Having said that, I agree with you that ideas are still the coin of the realm in marketing, and have lost out in recent years. But, still, a lot of brilliant ad people have tried the same thing and faced the realities of marketing today. And, those realities are not friendly to small agencies focusing on the power of ideas and the passion for the old way of advertising.

And, if you think clients are ready to embrace the kind of idea-driven, independent, fresh looking agency that you are building, think again. Today's metrics obsessed, scared of his own shadow CMO is the last person to embrace new, big ideas. He is just trying to hold onto his job. Your ideas have no place in that single-minded, self centered objective. Sorry to be so blunt, but there it is.

As such, you will be fighting for tiny clients like the rest of us. And, they are beyond challenged right now.

I know Venables Bell very well. They are a very respected firm in my home city. They did not exactly win the Intel business (they did so earlier this year, not last year) as a start up agency. They have actually been around for a number of years now and have already attained a strong midsized status with their winning of the Audi business a couple of years ago. It's nice that Venables was your inspiration, but they are no longer a little firm stoked by ideas.

I truly wish you the best with Darling. It is a fine idea, and you have as good a shot as anyone in this crazy business of ours. But, the world and the ad agency business is different today. The digital revolution truly has minimized the importance of that idea which you hold so near and dear. When you are using technology to continually optimzie your message, offer and media to drive performance and results, ideas can get lost in that relentless drive for efficiency and impact.

Buona Fortuna, Avi!

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By AHRL | CHICAGO, IL June 9, 2009 01:12:44 am:

In both my careers, ad guy/Leo Burnett & Needham/Chicago and head hunter, I have been in awe of what you have accomplished. Thank you for continuing to be a hero.
Should you wish an outside pov, gratis, re: ANYTHING, please feel free--not about the ideas, that is your thing. But about other out-there issues, please use me as a resource. It would be an honor-
Anne Ross, aross@annehross.com.

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By nashway | Englewood Cliffs, NJ June 9, 2009 08:23:24 am:

Good luck Darling. You're entering the fray with the most important tools: great talent and a commitment to stick to your guns. That's enviable in this day and age, no matter what the Dow is doing. Don't give up either of those elements, and we'll be talking about Darling for a long time. (With the real estate market in the shape that it's in, you probably scored on some cool office space too!)

Cheers,
Nader Ashway
The Ashway Group

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By ercole | Roma June 9, 2009 08:28:04 am:

I believe that a small, single idea which perfectly expresses what a brand or company truly represents to its prospects is the most powerful, most defining, most disciplined and most economic way for a business to maintain its momentum, profitability and sense of direction.

We do the same in Italy www.kennedyandcastro.com

Avi...good luck. Small's power.

Ercole

ercole.egizi@kennedyandcastro.com

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By Heidi | Worcester, MA June 9, 2009 09:20:21 am:

You are Jerry Maguire and I am Dorothy Boyd! Truly inspirational! Best wishes.

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By nickkinports | Chicago, IL June 9, 2009 09:56:02 am:

Congratulations Avi and good luck to Darling!

The industry needs more nimble, thought-leading agencies to grow and prosper.

Nicholas E. Kinports
Digital Integration Manager, Maddock Douglas
Blog: http://admaven.blogspot.com
Twitter: http://twitter.com/admaven

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By barry | NY, NY June 9, 2009 10:01:50 am:

Avi,

Best of luck with your endeavor. I always admire entrepreneurial individuals that are motivated by conviction and purpose.

At The Media Kitchen our communications philosophy is summed up by simple and famous formula: e=mc2 (read: squared). The most compelling brand experiences are the product of media and creative working together. When that happens the results are exponentially more powerful than any one discipline working along.

We'd be honored if you'd call on us to collaborate.

Best,
Barry Lowenthal
blowenthal@mediakitchen.tv

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By Bob | Boston, MA June 9, 2009 10:02:06 am:

So-called "small" agencies have always (and will always) be what drives this business.

There's nothing small about big ideas, no matter the size of the client or the agency.

Hell, Fallon became famous partly because of ads for a barber shop.

Congrats and good luck.

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By Rozzie | BETHESDA, MD June 9, 2009 10:40:35 am:

Darling seems to have the pedigree to pull this off, but no doubt they'll face many a marketing department that has been burned once and again by "idea" centered agencies. (The joke at one large corporation I worked at "when you see 50 year old dudes with ponytails walking into the pitch meeting, beware"). Sometimes it seems that agencies forget to serve the market that exists, not the one they *wished* existed .

Hang wringing CMOs are being harangued every day about instant testing, data mining, analytics and yes execution. Where do even squeeze in the "great ideas" in that cacophony?

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By Bob | Boston, MA June 9, 2009 10:52:51 am:

When a client puts the word idea in quotes, they're not a client I'd pursue.

Just saying.

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By ceherb | Santa Fe, NM June 9, 2009 11:09:15 am:

Avi

May the force be with you.

You you know, we had lunch at the Coffee Shop all those years ago and spoke of working together. Unfortunately, it never panned out. As I look back at that opportunity to bring you aboard my fledgeling agency, I realize it was my lost. You had the drive and talent then and in the past 15 years you have proved it to the entire advertising community.

I too have started an agency in Santa Fe, NM. It's a holistic marketing partnership called BrandCause. Once again I'm looking for someone like you to run the business. Any chance you have a twin brother?

Best of luck.

Charlie Herbstreith
brandCause.com

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By bbarrick | Costa Mesa, CA June 9, 2009 11:41:54 am:

Mr. Dan,

I agree ideas are king, but bean-counters remain the heavy-handed queen. And, the queen can make life miserable for the king. So too, can the MBA serfs who serve at the queen's will and don't know the difference between an ogre and a white knight.

We need more white knights like Darling to save the king.

Good luck Sir Dan,

Bill Barrick
Sr. Partner
The R.O.I. Group
bbarrick@theROIgroup.com

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By ronandoyle | Boston, MA June 9, 2009 12:00:19 pm:

Nothing could ring more true than the fact that small shops will be the future of the business. And I truly wish the best for Darling. I do question, however, if starting a NY branch of an existing Dutch shop, opening up with 20 staffers and six accounts is really striking out on one's own, consequences be damned. A lot of us ARE doing that, and it's quite different and far riskier. That said, I love small shops and hope Darling Rocks it.

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By JOHN | ALISO VIEJO, CA June 9, 2009 01:47:45 pm:

Dan-

From another small agency owner, congrats on your guts and enjoy the adventure ahead. We're entering our 5th year and hiring when other aren't...and growning when others can't. So we're lucky...check that...were also good.

If I'd know what it was like to own my own place, control our own destiny and help elevate the lives and ideas of others--within our walls and on the other side...I'd have done it 20 years ago.

Congrats again, Dan.

John G. Most
President, CEO
MOST Branding & Advertising

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By jsgnik | Woodbury, NY June 9, 2009 02:46:21 pm:

If anyone can make an agency work, it's Avi Dan - He's never been afraid of fighting for a great idea - something I witnessed and learned from long ago as one of his assistant account executives. Now, as a business owner myself, I look for people who are full of passion for what they believe in.

Good luck, Darling.

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By boxingclever1 | St. Louis, MO June 9, 2009 03:10:49 pm:

This is going to be an interesting time for agencies of all sizes, but you have quite a bit of reputation in yours already. The caliber of talent you're bringing with you is important, because you all will know what's worked at large agencies, and what hasn't. I was "trained" at a 300+ person agency, and having worked there and at the small shop I do now is valuable experience. You really need to be part of a giant machine before you break off and become a small shop, it's the only way to understand what the big clients are thinking and how they work so you can compete.

The question is, how fast is too fast to grow, and do you want to?

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By bchiger | New York, NY June 9, 2009 03:40:59 pm:

Digital advertising and social media have been key to the development of advertising because they force advertisers and clients to reevaluate the relationship they develop with consumers.

If agencies have failed to provide ideas for those spaces, it's not because "process replaced creativity" but rather that agencies have found it difficult to shift their thinking to deliver big ideas that work in a social medium.

For us, any platform represents a set of capability. It's not about using any particular technology, but rather, the technology that lets us properly express our ideas. Paradoxically, the constraints of traditional media made it simpler, but the flexibility of the digital platform makes it potentially far more powerful.

As you suggested in your post, it won't be until clients and agencies stop trying to "build buzz on Facebook" or "do Twitter" and start focusing on how they want to engage, support and add value to their consumers' lives that we'll see the return of big ideas.

Good luck with your new endeavor!

Brian Chiger
AgencyNet Interactive
www.anidea.com

twitter: @brianchiger

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By MATSNL65 | LOS ANGELES, CA June 9, 2009 03:55:47 pm:

Very heart felt and the reason that many of us have migrated from the huge multi everything agency environment to explore the passion that started us in this business. The first step is the partners who have a vision that without speaking, each of them share. The second and most critical will be building the foundation to nurture relationships with clients and talent.

Good luck.

Langston Richardson
VP, Digital Brand Strategist / Creative
LazBro, Inc.
www.lazbro.com
twitter: @MATSNL65 @lazbro

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By Agency of One | New York, NY June 10, 2009 10:16:36 pm:

1. Though your stated reasons and ideals for starting a small agency are by no means original, they are still noble. Big agencies only get that way when they grow out of small ones. The old growth forest needs to burn down to make way for the new saplings. So I wish you luck and growth.

2. How did you get this published in Ad Age? The connections and string pulling that resulted in this piece may facilitate success.

3. Do you have any clients? I started my small agency because I had a client fall into my lap, and pretended I was an agency because they mistakenly thought I was. Then I went from pretend to real. Please post a response as to the pros and cons of starting your agency before or after having clients lined up. I am sure readers would be interested.

4. Why did you choose to have partners at all? In starting a small business, the less "big" mouths to feed, the more likely the success. It seems like the key to success is having a client, and then having more clients. He who has the client has the power. And can hire great talent at much better prices than partners. Because an ad agency is not like other businesses that require startup capital, please explain to readers the pros and cons of having partners versus being the sole partner and collaborating with talented staff you hire?

5. I mentioned above "startup costs." I started my agency with no overhead or capital investment. Did you? What do you think is needed from a capital perspective to successfully attract clients? I think readers would also be interested in this.

Thanks in advance for reading this comment and replying...and again, I hope you have success.

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By Agency of One | New York, NY June 10, 2009 10:44:01 pm:

CONTINUED...

Just clicked on the link to your agency website. Looks like most, if not all, work on there is TV and Print. How do you start an agency with mission of experimenting with new approaches but offer no examples of that to clients? Maybe this is a chicken-egg paradox, but I think readers would be interested to know how to handle such problems.

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By thinksmaller | Kentfield, CA June 11, 2009 11:13:48 am:

Good Luck to Darling!

I liked how you wrote first about your people and their strengths. Talent rules when execution is secondary to the marketplace.

Kevin Combs
NeighborWave

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By kremsadesign | PASADENA, CA June 15, 2009 08:20:18 am:

Hi Dan,
great article and great comments.

I have been running an agency for 10 years. It is very rewarding feeling, one that i am sure you will experience as well. My suggestions:

1) Stay focused
2) When you find something that works create a process around it so that you can move onto the new things

Dan
Kremsa Design, Inc.
http://www.bykd.com

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