On 19 September, industry leaders from the North of England and Scotland convened at Colony One Silk Street in Manchester for a significant event. The gathering was centred around the unveiling of the list of top independent agencies to watch in 2024.
Attendees had the unique opportunity to gain insights from established agency leaders about their successes, challenges, and the various ownership structures best suited for independent agencies.
Keynote from Michael Heaven
The event commenced with a compelling fireside chat featuring Michael Heaven, co-founder and managing director of Butterfly 3ffect. Heaven, known for his dynamic career, shared his journey and key milestones.
From his beginnings at Social Chain, Heaven recounted how the agency skyrocketed to success following a viral meme. He also detailed his experiences in the US, including the formidable challenges faced while expanding into the American market.
Upon founding Butterfly 3ffect with Elfried Samba, the agency embraced a remote-first ethos and leveraged AI to streamline operations, significantly reducing proposal turnaround times.
Launching Butterfly 3ffect
While initially facing setbacks, such as the sudden financial collapse of a key client, Heaven and Samba’s resolve led Butterfly 3ffect to profitability ahead of schedule. The agency now boasts a diverse team, emphasising ‘diversity of thought’.
Heaven stressed that the industry is often ‘too narrow-minded’ and highlighted the importance of integrating varied cultural perspectives. This inclusive approach aims to foster innovative solutions to creative challenges.
Insights from Agency Leaders
During the event, leaders from some of the top independent agencies shared their personal stories. These included Rachael Sullivan of Theodore Communications, Chris Bardsley of List & Found, Rowan Morrison and Paul Saag of Rationale.
Each leader articulated the unique aspects of their journeys, providing real-world examples of the trials and triumphs faced by growing agencies. Their anecdotes resonated with the audience, underscoring the resilience required in this competitive landscape.
Panel Discussion on Independent Agencies’ Future
A dedicated panel discussion delved into the future of independent agencies, evaluating the best ownership structures. Notable leaders like Sam Gregory, Mark Hancock, Louise Vaughan, and Alex Willcocks provided insights.
Gregory highlighted the autonomy and decision-making agility that independence affords, which can be advantageous when navigating market challenges.
Hancock emphasised the ‘personal touch’ independent agencies can offer, allowing for deeper client relationships. Vaughan added that maintaining independence has helped their agency grow through acquisitions while retaining its unique cultural identity.
Challenges and Mistakes in Agency Growth
Panelists shared common mistakes from their early days, such as underestimating the importance of cultural fit when hiring. There was consensus on the need to maintain values as agencies expand.
Hancock admitted that initial missteps in building the right culture were costly but have since been corrected. Gregory echoed the sentiment, stressing the significance of working with brands that align with the agency’s core values.
Ownership Structures and Employee-Ownership Trend
The discussion also covered the rising trend of employee-ownership in independent agencies. Gregory described it as a ‘natural fit’ for Tangerine, noting that it has propelled significant growth.
Willcocks spoke about Engage Interactive’s transition to employee-ownership, explaining that it helps retain culture and staff loyalty. Vaughan supported this view, adding that a ‘buy and build’ strategy delivers long-term value.
Addressing Future Challenges
The event concluded with a discussion on future challenges such as securing growth funding and the impact of AI on the sector. Panelists acknowledged that while AI presents significant risks, it also offers opportunities for rapid adaptation and innovation.
The event underscored the dynamic landscape of independent agencies in the North, highlighting both the opportunities and challenges.
With insights from seasoned leaders, the discussion provided valuable perspectives on sustaining growth and innovation in the ever-evolving agency world.
