Droga5 to close its Australian office and focus on international efforts

Advertising agency Droga5 is to close the Sydney office before the end of the year as it looks to focus on Europe and harnessing the potential of Asia.

The agency, which is headquartered in New York, will shut down the Sydney office because it “no longer consistently represents the Droga5 brand” according to creative chairman and founder David Droga.

He said that the decision was a "bitter pill to swallow" but as a result of struggling to keep up its momentum in Australia the company saw “little value in continuing to operate in this market”.

He pointed out that despite world-class local management and many talented individuals working hard, the Sydney office has “floundered over the past few years”, while adding that “some of it was self-inflicted, some of it bad luck and some of it just the befuddling local advertising market.”

Moving forward, the agency said it would focus on creating a world-class leadership team in Europe and will look at the potential of China.

The agency’s commitment to strengthening its UK operations is evident in the recent appointment of Bill Scott as the chief executive of its London office. Further creative hires are also expected in the London office in the coming weeks.

Aside from the Australian failure the agency has had a highly successful year. Droga5 New York enjoyed its ninth consecutive year of over-40-percent growth and was recently named the North American Effies' Independent Agency of the Year, One Show Global Agency of the Year and Cannes Lions Independent Agency of the Year.

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