There's been a trend of creative agencies launching design units as of late. Some of those shops include Goodby Silverstein & Partners, GUT, JOAN Creative, MullenLowe U.S. and Lafayette American. While those shops already had design capabilities, launching a dedicated unit has strategic and new business benefits. That said, it’s a tough market for newbies, filled with established players such as Collins’ own practice, Landor, JKR and Pentagram, as well as boutique design-focused shops. And while design is still a key component for most marketers, the uncertain economy has caused brands to reduce the amount they spend, according to Natasha Jen, a partner at Pentagram, who said she has seen clients allocate 15%-30% less on marketing and design budgets compared to before the COVID-19 pandemic. Also great quote from Brian Collins: “You can write the entire history of design and never mention advertising once. You cannot write about advertising without writing about design.”
AI could revolutionize this capability making it more profitable, however we’ve seen a decline in good branding as DTC brands have focused on product and content to build more instant returns. Interesting to see how it evolves. We’ve always offered branding services as they are also easy to outsource or find great contract talent overseas
a) I love Brian Collins' quote: “You can write the entire history of design and never mention advertising once, You cannot write about advertising without writing about design.”🔥 b) This is a great, timely article Brian Bonilla 💪 I wonder what role (if any) digital and social design specialists might play in this shift you outline? I ask in part because OK COOL was once a design agency or studio, albeit a pure social-first one, but our work is increasingly taking on a more platform agnostic and dare I say it ad agency-esque look and feel. So, we're sort of doing the opposite journey to that you write about. Curious if many other challenger design shops are similarly evolving upstream?
I believe intelligent design or intelligent experiences will become the new surface to invent for brands. As the AI product layer matures we will see an explosion of new ways to connect humans with brands that amplify intelligence. The article points to the tip of iceberg but what’s below the surface is the game changer. Smart as usual Brian Bonilla
And many of my brand design firm clients are now being asked to handle ad/campaign work as well.
CEO & Co-Founder of Acadia, Former CEO of 360i, 2X Adweek Media All-Star, AdAge 40 under 40 (No Longer Under 40:), Author of "The Great Client Partner" & "You Get The Agency You Deserve," Operating Partner at Overline.
3moBrian Bonilla good article. Interesting. I guess though it makes me wonder a bit though.....if one looks back at history, Agencies are not good at "launching things". Over the years, Agencies have launched "Metaverse Things", "AI Things", "Trading Desk Things", "Proprietary Things" and all sorts of other things. There are 3 pieces of DNA that work hard against agencies in the long-term success of this stuff: 1. Distraction - Going beyond core is when agencies get in trouble. So, if the "thing" is not core in the first place, dont launch it as a thing....just make core. 2. Go The Distance - When something is launched on the side, the nano-second the agency gets into financial trouble, that new thing is the first thing to NOT get the first dollar. 3. Pilot Mentality - When things are set up as things, they are not set up to go the distance. I love the idea of a studio. But, I also love the idea of just solving the real problem. Clients are looking for great content, that makes no sacrafice around production quality, yet is faster, more culturally relevant, and is more affordable. That is not a "thing"....its a delivery riddle to solve that involves the entire agency. Always appreciate how you cover the industry Brian.