Small Is Beautiful: Why Thinking Small Could Be the Next Revenue Stream for Agencies

Big ideas, big campaigns, big names – advertising agencies definitely have a sizeism issue, and it’s costing them money.

I understand why – before starting my own business I was a producer at some of the, yes, biggest, agencies in the country [including AMV BBDO and adam&eveDDB]. But it’s only recently I’ve become aware of the scale of the issue.

That’s because of the number of conversations I’ve had with brands recently about how hard it is to get their smaller production needs fulfilled.

Most recently it was the regional marketing team of a global car brand, who’d been delivered some social and OOH assets by their global ad agency but couldn’t get the agency to make the changes required to ensure they had local resonance. But it’s a tale echoed across sectors which I believe highlights a systemic issue within the industry.

Many agencies just aren’t structured to handle smaller jobs – a consequence of internal hierarchies and hiring practices which focus on large-scale projects. It’s an industry joke about organising the campaign shoot in South Africa, but what is it they say about truths spoken in jest?  

Brands are happy about ad agencies’ big ideas but the lack of capacity when it comes to smaller jobs means clients are often faced with a choice of either using assets which aren’t as effective as they could be – a waste of those hard fought for media budgets – or abandoning some elements of a campaign completely, impacting their effectiveness, and also ultimately wasting budget.

The financial impact for agencies might seem relatively insignificant if each incident is looked at in isolation, the fact is that these lost revenues do add up.

Perhaps more serious is the long-term fallout: brands increasingly establishing in-house teams to circumvent these limitations – a move which, although not suitable for all companies, is indicative of a broader dissatisfaction.

Luckily, there are a number of solutions to this problem which can benefit both the client and the advertising agency.

As I am the founder of a specialist production company, you won’t be surprised if I mention the fact that, as well as working directly with brands, we are more than happy to collaborate with advertising agencies on production jobs of all shapes and sizes. 

But there are other strategies which can be implemented without making drastic overhauls to the agency structure.

One idea is to consider hiring producers with a background in both agency and production house settings. Such individuals bring a dual perspective that can bridge the gap between large and small-scale production requirements. Or, depending on how much of this kind of work is slipping through the gaps, it could even be worth building an internal team specialising in small-scale production.

Educating the teams in charge of global campaigns is also an excellent approach. This can be on aspects of production, such as choice of location and cast, which can help make creative assets more flexible. It can also be about helping creatives to understand cultural sensitivities and nuances of local markets, enabling them to produce content that resonates locally without requiring extensive reshoots or adaptations.

Recalibrating your focus and operations to include smaller-scale productions, agencies can serve a market segment currently forced to look inwards or elsewhere for solutions. It’s not a matter of scaling down ambitions, but broadening the scope to encompass the diverse needs of clients operating in increasingly segmented markets.

And the fact is, the cumulative financial benefits of numerous small jobs can rival or exceed that of a single large-scale project. Not only that, but I believe the art of thinking small is all about agility and adaptability – attributes that will serve agencies well in an uncertain economy and an industry which is in flux.

Recognising and adapting to the commercial potential of smaller-budget productions, can open up a valuable revenue stream, keep you competitive, and most importantly, make your clients fully supported and satisfied.

Ultimately, agencies need to reframe their understanding of scale. Big ideas and campaigns will always have their place, but there’s untapped potential here.

In a world where every client’s need is a revenue opportunity, very few agencies can afford to overlook the small – for within it lies the potential for growth, innovation, and a new kind of success.