Instant agency growth formula

Johannesburg - Overnight, two small agencies have become medium-sized. Both DDB South Africa and MetropolitanRepublic, who will share the R300m-a-year First National Bank account, are recruiting, and expect to end up with at least 50% more staff than their current 50-60 each.

The business is being split into two roughly equal halves, with MetropolitanRepublic getting brand communications and sponsorship, while DDB is assigned the "smart" division (low-end consumer banking), personal banking, "wealth" division, commercial, corporate, public sector banking and internal communications. A third agency in the mix, Gloo, continues to handle digital and online communications.

"It's a complicated account to handle," says DDB CEO Glen Lomas. "Each division has its own MD and marketing team. We'll be hiring 20-30 more people."

MR founder Paul Warner says the account "will just about double the agency".

In an industry that may have laid off 400 people in the last two years, with more redundancies possible at Draftfcb after the loss of the FNB business, there'll be no shortage of applicants. Inevitably, in a talent-starved business, FNB may find itself dealing with some of the same people who previously worked on the account.

But that doesn't stop it getting something new out of the agency. "The group dynamics will be different," says Warner. "FNB wants fresh ideas, quicker response, fresh talent, a more hands-on relationship with the creatives, and different mindsets."

After short-listing two large agencies (Ogilvy and the incumbent, Draftfcb) and two small ones, FNB was expected to choose at least one of the big guys. So its choice was a surprise, but seems to be part of a trend of appointing small agencies for big accounts. "Increasingly," says Warner, "clients are showing this willingness. I think they are tired of the big agencies. They need people who are highly responsive and fast on the ground. They want to deal with the agency's top people, and they don't always get that with big agencies."

Lomas agrees. "An advertiser who wants to differentiate his brand needs people who can react quickly. Small agencies are better at this."

FNB apparently found the two small agencies suggested similar approaches which showed a good understanding of the brand values of the bank.

DDB was named AdReview Agency of the Year in April, while MetropolitanRepublic was lauded as one of six hot-shops of the year.

Meanwhile, pitching for the Old Mutual's R80m account will take place on Tuesday, and a decision is expected by the end of August. DDB was initially shortlisted, but after winning FNB has pulled out, leaving the field to Net#work BBDO, Draftfcb and Lowe Bull. Ogilvy, the incumbent, resigned the account and declined to re-pitch. Industry sources say its relationship with Old Mutual had soured.

- Fin24.com