Supernatural AI launches a new agency and breaks out its AI software business

Supernatural AI is becoming a holding company. The agency is splitting its artificial intelligence practice into a business unit called Supercharger and rebranding its ad agency business as another unit, called Supergood. The move comes four years after the launch of Supernatural, which quickly grew a reputation as a specialist in AI—it even added AI to its name last year. But that reputation may have eclipsed that of its advertising capabilities, according to the Supernatural co-founders Mike Barrett and John Elder. Elder said that while its platform presented a unique advantage, there was concern that Supernatural AI could fall into what he called the “trap” of only being known for its technology. Ad Age Small Agency Awards Showcase your agency’s creativity, business success and commitment to a thriving workplace. Enter today Clearer identity Supernatural AI’s tech capabilities are meant to make its employees’ jobs easier but are not meant to replace the human element of creativity, its leaders say. They wanted that to be clear in its branding and how the businesses go to market. “What makes an agency special is the people,” said Elder. “We’re just trying to make it easier for the people to do their jobs, and get more talented people to do the work." Another key reason for splitting the businesses was to create a clear identity, given there was confusion in the market about whether Supernatural AI was an agency, software business or consultancy. “We kept having these conversations where it was hard to understand what we are,” Barrett said. “By splitting it, we have a software company that builds power tools for marketers, and we have an ad agency over here that makes ads for people who need advertising.” Currently, 85% of the company’s revenue comes from agency work and 15% from software services. Supercharger’s clients include both marketers and other agencies, which also complicated matters. “On the agency side there are a lot of exclusivity issues and on the SaaS [Software as a Service] platform side, there can’t be,” Barrett said. “This thing gets smarter the more we put into it, and we’re bringing in talent on the Supercharger side that’s not agency talent.” The split is also meant to remove concerns from agencies licensing the platform that don’t want clients to know they are licensing software from another agency. Also: A decade of deals that transformed the ad industry Different cultures Separating the two businesses may also make for a better cultural fit for hiring. Barrett said that as Supercharger grows it will hire staff that “you wouldn’t normally see at an agency,” such as product managers and customer success people. “It’s hard to get engineering talent excited about the same things that creative talent gets excited about,” Barrett added. “They look for very different things in a place where they want to work. Engineers want a clear product roadmap. They want to be left alone to do their jobs.” This is the first significant move under Supernatural’s new leadership team, which includes its recently appointed chief creative officer, Bob Winter, and its first-ever chief growth officer, Ray Kang, who joined after serving as head of growth at Mojo Supermarket. Between the two business units, Supernatural AI currently has 45 employees. Last year the agency won one of its largest clients, U.S. Bank, which previously worked with Interpublic Group of Cos.’ McCann. Overall the business more than doubled its revenue last year. Its other key clients include Cinemark, Zipcar, Edmunds, MSQ and The Christ Hospital Health Network. Behind the branding The agency’s new visual identity includes blue and red colors and features hand-drawn images created by Supergood’s senior designer Aarman Roy, who led the redesign. The hand-drawn images are meant to emphasize the parts of humanity that AI can’t replicate and also show the agency’s creativity. Winter and Kang helped with the new agency positioning. As part of the push, Supergood collaborated with streetwear clothing company Market Studios on merchandise featuring the agency’s new identity. Market Studios’ ad agency, Creative Dept., will also work with Supergood as its cultural and experiential partner. Concurrently, Market Studios is working with Supergood for audience insights and strategy for an upcoming project, said Vinod Kasturi, CEO of Market Studios. The new merchandise will be available for purchase. “I wanted to avoid making something that felt like another agency’s swag or merch item; this truly should feel to the consumer and anyone who gets this hoodie in hands that it’s just a special piece,” said Mike Cherman, founder of Market Studios, in a video showing the making of the clothing (above). Next steps Supercharger will look to target clients in healthcare and financial services since those industries have shown interest in AI-related services, Barrett said. The two founders will also focus on raising capital to grow Supercharger. Supergood, meanwhile, is working to expand its client roster. It has added an undisclosed major gaming studio and a music company, and is speaking with businesses in categories including consumer packaged goods brands, automakers and social platforms, Kang said. Agency Review Tracker Stay up to date with the latest account reviews Click here

Supernatural AI launches a new agency and breaks out its AI software business

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