Edinburgh creative showcase

Lisa Jelley of Zero Design feels that for design agencies such as her own dealing with clients has become a very hand-to-mouth existence in recent months.

KNEE-JERK

“We’re finding that our clients are working on a ‘just in time’ basis this year, where they don’t seem to be planning projects in advance, but are commissioning work as a knee-jerk reaction to what is requested of them,” she says.

“This can have a knock on effect at all levels, giving us even less time to respond, it inhibits our creativity and restricts the time we have available for project management and quality assurance, both of which are a fundamental part of the design process.”

It’s a good point Jelley makes, all too often you cut time and inevitably you lose quality.

Mike Lynch, managing director of Radley Yeldar, which recently won a Children’s BAFTA nomination for its Faraday ‘08 work for The Institute of Engineering and Technology, concurs that times are indeed challenging for the design sector. He says: “As with all industry sectors at the moment, the design sector is facing some very tough trading conditions. However, we still believe there is work out there; it’s just more challenging to find and win - particularly as everyone is chasing a diminishing project base. Design budgets in the private sector are being cut, and clients are now asking for even more added value. This is something that is likely to continue for some time yet, so agencies need to become more competitive, agile and flexible in their approach. The public sector is sustaining a lot of agencies right now, however, these budgets are also being cut so work is likely to decline here too.”

RUTHLESS

Design Links is one of the agencies currently being kept busy by public sector clients, along with the SME, Higher Education and utility sectors.

Managing director Mike Stevenson believes that the design sector in Scotland can thrive, however owners have to be ruthless to survive. He says: “There is talent in Scotland and I want to see it remain here, but we all have to be ruthlessly businesslike. I see agencies fail because their overheads are unsustainable while the market is increasingly reluctant to spend lavishly. There is a clear trend towards niche agencies - operating in particular sectors or offering highly specialised products. This allows regional agencies like ours to prosper from the London fall-out. Clients we survey, especially in the large corporate sectors, now look for smaller specialised suppliers. I can’t fault their thinking. The supermarket culture may be good for hard-pressed consumers but is less attractive in business-to-business trading.”

Full service creative communications agency Hookson has enjoyed much success over the last year working with clients such as Nobu, NCR, Fired Earth and Rangemaster. Describing the creative communications sector founder Bryan Hookson says: “It’s fair to say that the industry is buoyant in some sectors and flat line in others. There is uncertainty in some sectors and clients are wanting great return on investment. There is more emphasis being put on really understanding what motivates consumers and customers to purchase goods or services.”

Clearly ROI is one area that all facets of the marketing community have to demonstrate, now more so than ever before.

Paul Docherty, creative director of Omnia, agrees that clients are certainly now demanding much more bang for their buck: “I think generally there will be a lot of stock taking going on at the moment. Many in our sector will be looking to strengthen internally and externally. I would imagine that this will lead to an even sharper business focus. A trend I’m finding is that clients are coming to the table with their briefs and objectives even more refined, which is not necessarily a bad thing. I’m finding that clients are not particularly spending less, but they are quite specific about what return they will get for their money.”

Cubit3D is a specialist 3D design agency, which has been working increasingly in the leisure sector for clients such as Johnstons of Elgin, The Beatles Story and Mersey Travel among others.

And while Russell Stewart of Cubit3D feels that the 3D design sector in Scotland is fragmented, he observes that a number of 2D design agencies are now moving away from that sector, retrenching to their core 2D offering.

He says: “I think it’s interesting that larger groups, which originally offered a multi disciplinary approach including 3D, seem to be contracting to their core 2D design and marketing disciplines. This may make competing with large London-based multi disciplinary groups more difficult for Scottish agencies, but could also provide opportunities for companies like ourselves who embrace consortiums and team working. Big groups breaking up also make for more competition. As everyone knows, anyone with a Mac can be a designer. What really sets you apart is your portfolio and network of clients and colleagues. It’s increasingly important to optimise these key resources.”

Moving focus away from design and into advertising, Adrian Jeffrey launched Mightysmall in Edinburgh in late 2007 and has recently won new business for the National Museums of Scotland, Murrayfield Hospital and the Communication Workers Union. In the last year he has also picked up clients in locations as far flung as Latvia, Finland, Dubai, London and Birmingham.

FMCG BRANDS

Speaking of the development of the advertising sector in Scotland he says: “The advertising sector has changed gradually over the years. There were a lot more Scottish FMCG brands doing big ad campaigns (with Scottish-based ad agencies). Now the big spender is the Scottish Government. And in times of recession the private sector retracts and the public sector grows. So, I expect this to continue, hence the reason so many agencies were so desperate to get onto the Government roster.”

One trend that has been particularly evident during this downturn has been the willingness to invest traditional advertising budgets online because it is so highly accountable. Surely this bodes well for the digital sector and offers well run digital businesses a degree of recession-proofing?

Line is one of the best known digital agencies in Scotland and has in the last year worked on projects for tourism site Welcome To Scotland, Specialist Computer Holdings, SnowsportsGB and IKEA. Managing director of Line, Ross Laurie, sums up the quality of digital available in Scotland as “phenomenal”.

He says: “From an agency/talent point of view we really do punch above our weight, the quality of some of the agencies is phenomenal - from Bigmouthmedia to Curious Digital - Scottish agencies are winning huge international brands from the traditional ‘big’ industry/London players. The dearth of digital talent is beginning to wane and Scotland has always been seen as a centre of excellence for innovation so it’s no surprise that some of the biggest names in digital are from Scotland. Businesses are looking for innovative ways to improve their ROI and digital offers the accountability that keeps the FD happy. I would expect to see continued growth in the sector.”

Sam Miller at Civic agrees with Laurie. She says: “There is a great atmosphere around digital, not only among the sector, but within client marketing teams too. Obviously there is an increased interest in cost effectiveness, but also about the benefits digital can bring in comparison to offline. The buzz is definitely social media and all the exciting and new things that brings.”

EXCITING

One thing that comes through from creative businesses is that things may be economically tough, but it remains an exciting industry to work in.

Justin Adams, who works in the video production sector in Edinburgh with L.A. Media, backs up Miller: “Video production is a buoyant and exciting business sector that is constantly requiring you to reinvent yourself and constantly examine everything you do, from working practice to costing, to delivery of product. The excitement and energy in the market place is being driven by how clients are choosing to use video and the fact that they are always looking for more product for less money.”

And what of suppliers to the creative sectors? How are printers, photographers, illustrators and even the events and hospitality sector faring at the moment?

Illustrator Tim Griffiths says that not just the recession, but also the increased use of online photo image banks are also taking their toll. He says: “I mainly work with small businesses and a few charities, and the availability of cheaper sources of imagery, for example iStockphoto and their ilk has its effect. I might be provided with better photos for inclusion in design by the client with fewer resources, instead of snaps. However, I see the increased use of clipart/off the shelf art, as opposed to unique imagery created especially for the client, adversely effecting quality out there.”

Edinburgh-based photographer, Robert Brady believes that when marketing budgets are being squeezed things like photography are all too often one of the first areas to suffer.

“It’s a little slow all over at the moment. Clients are trimming advertising and marketing to a minimum, hence budgets are low and agencies and snappers are getting squeezed for lower daily rates, full copyright and so on. It’s such a shame that the creative industry and photography especially is always seen as a soft budget at times like this. I know my massive overheads don’t soften with crunchy credit times...sounds like a new cereal.”

At the back end, the print industry, which actually brings the design work to life, across Scotland has had a very tough time over the last few years with many outfits merging and even closing down.

Eastern Digital is forging ahead however, looking to make cost savings, which they can then pass onto their clients to ensure loyalty and repeat business.

Janet Lee Adam of Eastern Digital says: “It is very competitive out there as everyone is trying to get the biggest bang for their buck. We are more than likely doing the same as other printers by trying to reduce our costs to pass on savings to our clients. Budgets are certainly tighter and many have been considerably cut, however everyone remains under pressure not to cut quality or turnaround times. There has been an increasing trend towards centralised purchasing, it may be more apparent at the moment, but I’m not sure this trend has anything to do with the economic climate.

“There will be good and bad outcomes as a result of the recession. Clients depend on us as their partner, to pull out all the stops for them, do a great job and work together and this ultimately strengthens relationships and loyalty.”

RR Donnelley Global Document Solutions is also another major player that supports Edinburgh’s creative community and Frederick Pollock, managing director Scotland & Ireland, also believes that increased customer service which ultimately reduces stress and cost for them is the way forward.

COST-CONSCIOUS

He says: “Volumes have shrunk as customers migrate more of their work to new media channels for promotion or communication, and cost-conscious clients are looking for a return on every pound, in some cases downgrading specs accordingly. The industry in turn is diversifying by building extensions to core services. Traditional print companies for example are moving to digital production, and moving into short run DM.

“Clients are looking for more bundles services from fewer suppliers to remove administration and procurement costs. We are responding by providing more effective design and production solutions to make every communication piece work harder, backed up with consultancy and a wide integrated service offering.”

One sector that look set to fare reasonably well out of the recession is the public relations industry. As clients cut advertising budgets they inevitably rely increasingly on good PR to retain their brand image.

Kevin Dorrian of Acumen PR has noticed that there are more and more ‘one-man bands’ out there as a result of many journalists losing their positions and switching sides, so to speak, and getting into the PR sector. That said, he also believes that the recent growth in social media presents many opportunities for the PR sector.

He says: “We are putting more resources into developing opportunities utilising digital and social media, both to promote Acumen and also our clients. PR commentators and industry observers are in agreement that utilisation of social media is increasing. The various tools at our disposal, from blogs and social bookmarking sites to mainstream social media tools, will continue to be used increasingly as the PR industry seeks to pitch clients to its targets using this resource. We also, however, remain great supporters of the quality of our traditional media.”

The events and hospitality sector has ridden on the crest of a wave in recent years and one company that has enjoyed major success is Fraser Suites, which sees the creative sectors as a lucrative client base for them. And just as agencies are having to think smarter to win business, so are hospitality business such as Fraser Suites.

Jennifer Thomson of Fraser Suites in Edinburgh says: “The hospitality sector in Scotland has grown dramatically over the past few years with an increase in visitors to the big cities such as Glasgow and Edinburgh through successful marketing campaigns. The hospitality industry is innovative and progressive, which can also be seen with the rise of the serviced apartment sector. Consumers are no longer stuck with the same old hotel options and more people are requesting and using serviced accommodation.

“Frasers is withstanding the recession well. Not having made any redundancies company wide, all properties are standing strong and year-on-year are doing well. There has been a decline in corporate travel due to many travel budgets being slashed, however people are still travelling. The business is still out there to be had, people are just more price conscious. We are actually finding we are gaining more enquiries as clients are shopping around more and we are winning business due to the added value we offer our guests.”

Now looking to the future - how are Edinburgh’s creative businesses making the best of the situation and how do they intend to push forward with their own development?

RECOMMENDATION

Mairi MacDonald of MacDonald Orr says: “Spring sees us in our fourth year trading and so far most of our business has come through recommendation, but we realise that no-one can rely on repeat business or word of mouth alone. We are investing more in our own marketing and approaching business sectors that would perhaps previously not thought of using a small company. We’re currently looking for new premises and are always on the look out for creatives who can add to our strengths and broaden our services.”

Likewise, design consultancy Elastic Creative is also aiming to build positively despite the economic turmoil. Alex Kirby of Elastic Creative says: “Innovation, more than ever, is required. We feel our ‘elastic approach positions us very well to handle anything thrown at us. We have a proven track record now in providing innovative solutions matched to a clients needs - often exceeding their own very high expectations. We intend to continue in promoting our strengths - a high level of creativity combined in knowing what’s right for any given brief. We’ll also continue to work with any sector and continue to push our versatility.”

Adrian Jeffrey at Mightysmall is taking a collaborative view of the way forward and is keen to partner with other businesses, as he explains: “My plan is to keep making friends with other like-minded companies who have complimentary skills to ours. Together we can win business for each other. If there are any companies reading this that we haven’t met up with yet and think it might be good working together then please call us. Likewise we are doing more and more work with other marketing companies that want to use our skills for their clients, sometimes discreetly, which is fine buy us.”

Clearly as an international business Radley Yeldar has a huge network of expertise to draw upon, and MD Mike Lynch is keen to make the most of his client experience gained at a number of long established design consultancies.

He says: “We place a strong emphasis on thought leadership and sharing our communications expertise. As part of this activity we regularly send insightful thought leadership papers and brochures to clients and interested prospects. With our Edinburgh-based seminars we regularly address key issues affecting B2B companies and they offer effective solutions to help companies engage. We are an established communication consultancy throughout the UK with offices in Edinburgh, London and Birmingham. We are therefore comfortable offering our range of services to a fairly disparate client base regardless of location.”

By comparison Ross Laurie at Line is looking closer to home to build his business: “We’re actually looking inside our borders for new business. Traditionally Line has only had a small number of Scottish clients - we’re keen to change this as I feel a wave of understanding wafting over Scotland these days and it would be nice to see some more quality work coming out of Scottish clients.

LAST JOB

“We’re only as good as our last job, so it’s all about referral, referral, referral. Digital is moving so quickly that it is getting to the stage where anything we did 12 months ago is inadmissible in a pitch.”

Likewise, Annette Pickering at print and web design agency Bagelfish is eager to ensure that the strength of their client relationships is the primary focus as opposed to number or geographic spread of clients. She says: “We are looking to expand our skills and creative experiences as well as our client list pushing Bagelfish to its limits creatively. As a small agency we like to offer a face to face approach making us accessible and bringing back the business to Bagelfish. World domination sounds great, but we like the fact that we know all our clients, have built up good relationships with them and understand their creative needs and share their ambitions.”

And despite the tough times, Janet Lee Adam at Eastern Digital is keen to take any positives available, which can be used to the advantage of Eastern Digital’s clientbase.

She says: “I think the consolidation of looking at all the costs in the business to make sure we can supply our clients within the budgets they require. We are enjoying the chance to work with new clients who are not getting the support that they require from their existing suppliers, so are looking around for new opportunities for their clients.

team spirit

“Also the team spirit within the business is better. I don’t think anyone takes their employment for granted at the moment. I don’t think anyone doesn’t know someone who has either been made redundant or is likely to be made redundant. In business the only constant is change, and we should all expect it and embrace it, so even if it seems tough at the moment there will always be positive outcomes.”

So, it seems that after taking the temperature of Edinburgh’s creative agencies there remains an overall feeling of optimism and excitement in the spring air.

Granted, that excitement might be fuelled by the fear of losing clients, losing jobs and so on, but as long as that optimism and excitement can be harnessed and channelled into servicing clients, winning what new business is out there and operating within a tight cost structure then one would hope that Edinburgh’s creative community can survive this downturn and emerge at the other side in an even stronger position.

As Julie Diver of 39steps concludes: “I think this climate is actually very positive in many senses for smaller businesses like 39steps. The main advantage is that larger organisations who have relied on large agencies to service their needs are no longer able to, or prepared to, pay the costs larger agencies command and are therefore looking more favourably at smaller businesses to see how they can help instead.”

All responses gathered for this feature can now be read and downloaded from the Marketing Industry Network website www.marketingindustrynetwork.com. Details on how to become a member of MIN are also on the website.