CREATING a point of difference in an already heavily serviced market may be difficult for some, but for Mark Lucas it was a case of carving a niche market by rewriting the script for the structure of advertising agencies.
CREATING a point of difference in an already heavily serviced market may be difficult for some, but for Mark Lucas it was a case of carving a niche market by rewriting the script for the structure of advertising agencies.
When he started his business, Lateral Aspect, 13 years ago, Mr Lucas decided not to stick to the typical ad agency model of having an account director managing the communication between a client and the creative people developing the advertisements.
Instead he built his business from a fibro shack in Mullaloo, cut out the middleman and the associated overheads, and has run his business without the ‘indispensible’ account executives.
“Essentially people go to an ad agency to get ads or commercials made, branding or rebranding work, and the people that are working on it are the creatives,” Mr Lucas said.
“By taking any middle people out of the process, it takes out a lot of cost to the client, generally they are dealing with a senior creative director.”
Removing the account executive from his ad agency model has eliminated not only significant overheads for Lateral Aspect, but also the communication breakdowns that can occur under the traditional structure.
“The great advantage to the client is they get to talk to the people who are actually doing the work. I think a lot of our clients we have had for a long time, whereas a lot of agencies tend to get flicked a lot more often than we have,” Mr Lucas said.
Lateral Aspect has four large retainer clients: residential property developer ABN Group; meat producer DBC (for which Lateral won an International Food and Beverage Creative Excellence Award); Eco Beach Wilderness Retreat; and Saudi Arabian fisheries giant Robian.
On top of these four, Llateral Aspect is focused on servicing the small business sector.
“The traditional structure obviously works, but I think for our market, if they can get creative bang for their buck, that is just for that creative as opposed to paying for overheads, that is a niche market for us and it is one we do live in,” Mr Lucas said.
By having the creatives involved first hand with the clients, a better understanding of the business was generated and relationships built on trust, which leads to the retention of clients.
“As well as the creative work, you get a lot of commercial awareness and understanding of a range of industries that you wouldn’t get if you weren’t working in this structure,” Mr Lucas said.
That’s not to say he doesn’t acknowledge the challenges in the structure, however.
Without the account executives, the creative directors and designers are responsible for connecting and communicating with clients, which can lead to time management issues.
“We have to go to client meetings and leave the office. It is a matter of time managing what you are doing, being able to do it really well and not taking on more than you can chew because your work will start to go down hill,” Mr Lucas said.
As a result, choosing the right clients has been integral to Lateral Aspect’s business plan.
“We need to pick our clients. A large government account we couldn’t look after because they require tonnes of paperwork. There is no downtime in administration with us,” he said.
Mr Lucas has always worked with international clients in order to avoid fighting for work with Perth’s advertising agency heavyweights. And while he has resisted growth in the past to maintain the standard of work, Mr Lucas recently opened an office in Manchester, UK.
The business is operating with a creative director on the ground in the UK, with the creative team in Perth developing the advertising he brings into the business.
Effectively, Lateral Aspect is exporting its goods to the UK, a model that is attractive to clients in Britain thanks to the current value of the Australia dollar against the pound.
“We are looking at doing the same thing in Hong Kong soon as well. There is expansion but it will just be the same micro model, it will be in different places and we will be exporting to those places,” Mr Lucas said.
Enviro edge for NFP groups
ENVIRONMENTAL activist organisation CoEfficiency Australia has highlighted the organisational benefits available when operating with sustainability as a key principle.
CoEfficiency Australia says that 78 per cent of the population is concerned about the environment and 80 per cent of the population wants to work for an environmentally conscious workforce.
By being environmentally conscious, NFPs can attract and retain a stronger workforce and provide a healthier work environment. And by combining operational efficiencies, a strong workforce and environmentally responsible operations, NFPs will create a competitive edge with funding bodies and eco-savvy donors, the group says.
One Perth organisation that has heeded this advice is homeless support outfit St Bartholomew’s House, which this year will redevelop its accommodation properties to make them environmentally sustainable.
The development, which will cost a combined $32 million, received $23 million in state funding, $7.3 million from the federal government, $1 million from St Bartholomew’s House Foundation, and an additional $750,000 for energy saving initiatives including solar panels, wind pods, storm water collection initiatives, window treatments and water saving plumbing devices.
