Longtail in buy-back

DIGITAL advertising agency, Longtail, has become an independent entity after the company bought back the outstanding 50 per cent share held by The Brand Agency since 2007.

Longtail founding director, co-owner and chief executive Carlo Bertozzi said the buy-back (for an undisclosed price) was always on the cards, although it was slated to occur further down the line.

“It (regaining independence) was always the plan, although we saw it being a couple more years out, but the speed at which digital has moved forward has accelerated that,” he said.

“It’s made it a bigger opportunity more quickly, and for the business to go to the next level we need to have a degree of independence. Perth is a relatively small town when it comes to the main agency players here, so that independence allows us to take us to the next level.

“It’ll mean we have that capacity to work with clients that are working with other larger agencies if that’s the case.

“Obviously sometimes even when you’re working with a client direct, the fact there’s a strong affiliation with another mainstream agency doesn’t always work in your favour.”

Mr Bertozzi said his company was always a 50-50 joint venture with Steve Harris and The Brand Agency.

The agency assisted with start-up costs while both parties had tipped clients into the mix since August 2007.

“In terms of setup, management, recruitment and day-to-day running it was me, which is why I was the founder essentially, and Steve and his crew were an active supporter in a financial sense and in terms of introducing us to their clients,” Mr Bertozzi told WA Busisness News.

The Brand Agency managing director, Steve Harris, realised that Longtail needed to operate and be seen to be totally independent if it were to grow.

“Longtail will continue to be an important partner to The Brand Agency in the digital area, but being 100 per cent independent will expose it to greater opportunities for growth,” Mr Harris said.

Mr Bertozzi said the company had experienced double-digit growth during the past two-and-a-half years, while employee numbers climbed from three to 18 with more vacancies to be filled.

“At the end of the day probably 80 per cent of business is with direct clients anyway so you can see in that why it would be a strategic imperative for the business to have its independence,” he said.