Advertising Agency research

Part
01
of two
Part
01

Advertising Agency Accelerators: Y&R, R/GA

Y & R's Sparkplug and R/GA's Ventures was founded in 2011 and 2013, respectively, they both provide startups a platform to develop their brand, improve their product, identify partnerships, and raise investment capital. Full histories and Business Models for the Accelerators have been provided in the findings

Y&R's SparkPlug Accelerator Program

Overview

  • Sparkplug is a startup incubator program founded by Y & R. The program connects companies/Startups to share ideas and technologies freely. It offers these startups free office space, resources, relationships to companies, and idea generators that may provide value to the program or the brand with no equity fees. These startups are provided an opportunity to focus on building their innovative ideas, technology, and products with access to Y &R’s expertise, global network, and clients.
  • In exchange, Y & R’s Sparkplug invites these startups to share new methods of thinking, introduce innovative technologies and forge partnerships with them.
  • The Sparkplug program is now also currently running in Y & R Singapore.
  • The Program runs for six months.
  • In 2017, the Sparkplug Program hosted startups like Instapanel, Raiserve, Tint, Uru, and Vyril.
  • In 2018, it hosted startups like Storm X. Inc., Wolox, Omnivirt, Plus1,Skitish Media, Streereo, headliner Labs, Lowkey and Mindstate
  • Y & R’s Sparkplug was launched in 2011

History

  • According to Y&R’s article, “Companies seeing the most success across industries today are those that challenge and disrupt the norms. From Apple to Amazon, and Google to Tesla, the groundbreaking ideas inherent in innovation are what has taken us from an 8-inch battery pack TV to on-demand streaming, from walking on the moon to the prospect of getting us to Mars. And with start-ups growing at a rate of 10% per week, it’s clear that real market shifts are happening.” The company went further to say they are embracing these markets changes by building innovation into the roots of the company and created the Sparkplug program to support entrepreneurs and startups.

Business Model

  • Y&R’s Sparkplug seeks innovative, growing startups in conversational AI, Mobile, AR/VR, social, and experiential.
  • As the Sparkplugs companies work in Y&R’s NYC, and Singapore offices, Y&R’s provides Sparkplugs companies with Mentorship, Legal Services, Branding Advice, Client introduction and more.
  • Y&R does not provide visa assistance to these startups.
  • Y&R takes no equity from startups and also keeps in touch with these startups.

Startup Requirements

  • For a startup to be accepted as a client, startups need to apply to be part of the incubation program, and those with serious consideration may be given an interview
  • As Sparkplug is interested in innovative, growing startups in conversational AI, Mobile, AV/VR, social and, experiential, Startups that meet these criteria are given consideration.

Recent News

R/GA Ventures Accelerator Program

Overview

  • R/GA Ventures is an accelerator program founded by R/GA. The program works with early-stage startups that are innovating products, services, experiences and exploring new business models that exploit technology.
  • It offers startups investment capital, creative capital, and our global network.
  • The accelerator employs R/GA in-house teams of world-class designers, brand strategists, and creative technologists as well as the agency’s mentor network to amplify investment capital for Startups.
  • The R/GA Ventures Accelerator provides space to startups across R/GA’s global network throughout the entirety of the program but does not necessitate startups to move.
  • The R/GA Ventures Accelerator was launched in 2013
  • The R/GA Ventures Accelerator programs runs for a year
  • R/GA Ventures has sponsored 14 programs
  • R/GA Ventures has invested in about 90 startups

History

  • According to Stephen Plumlee, Vice Chairman, R/GA and Managing Director, R/GA Ventures, “When we first started out, we were working with Techstars, and the idea was pretty much a traditional accelerator”. He goes on to say that initially they were gathering about 10 early startups all in the same place for a period of 3months with each getting a certain amount of investment funding. Continuing. He said, "the team realized that if the innovation needs of clients and corporate partners were prioritized, it could be of value for everyone They could work with startups of any maturity, and not just early-stage companies." In his view, the focus was on solving the strategic and authentic goals and needs of clients and partners.

Business Model

  • R/GA Ventures helps companies of all sizes develop their brand, improve their product, identify partnerships, and raise capital using R/GA resources.
  • They accept flexible program plan that allows you to continue running your business efficiently.
  • Ventures studio model does not require founders to move their team.
  • They have various Venture Studios like Global Sports Venture Studio and R/GA Data Venture Studio.

Startup Requirements

  • For a startup to be taken as a client, startups need to apply to be part of accelerator program.
  • The company does not state any criteria for choosing startups.

Recent News

Part
02
of two
Part
02

Advertising Agency Accelerators

Group M is a traditional advertising agency that created AdVentures, a business incubator.

Overview

History

  • Group M is one of the largest media investment companies.
  • The company is responsible for directing more than $48 billion in annual advertising.
  • Group M came up with AdVenture to improve communication among agencies, clients, and ad-tech startups.
  • The program was launched in New York on April 22, 2019.

Business Model

  • After launching the incubator program, Group M retained an advisory role and to propose a solution to any specific business challenges that might arise.
  • Group M also acts as a mentor to the startups accepted in the incubator program.
  • Group M, Jet.com, Church & Dwight, and Mike’s Hard Lemonade also act as judges to the incubator program.

The Focus of the Incubator

Group M requires startups to focus on the following areas:

Opportunities Awarded to Startups

Startup Requirements

Recent News

  • The most recent news about AdVentures was on how Jet.com, Church & Dwight, and Mike’s Hard Lemonade have joined the incubator program.

Publicis Groupe M Lab Incubator

  • Publicis Groupe is the third largest communication group in the world.
  • It was founded in 1926.
  • It formed M Labs, an incubator, to test the types of services its artificial-intelligence platform, Marcel, will offer brands.
  • M Labs was founded in 2017 and it was launched internally.

RESEARCH STRATEGY

In order to find advertising firms that have incubator programs, we searched industry reports, surveys, press releases, journals, industry expert interviews as well as press releases of advertising firms in the US and UK that might have started an incubator/accelerator program. Through this search attempt, we garnered data about Group M and its incubator program. Further, we performed an extensive search in the public domain to find other advertising companies with incubator programs in the US or UK. However, the search results did not provide anything substantial.

Then, we proceeded to find a list of all accelerator programs in the US and UK. We aimed to identify all the accelerator programs in these regions and then look at the accelerators individually to determine whether they were founded by an advertising firm. We combed through various credible databases to find the list such as Seed-DB, CrunchBase, and AngelList, Hubble HQ, Entrepreneur Handbook, and The MBA Is Dead. However, we couldn't locate other advertising companies with incubator programs in the US or UK.

Lastly, we tried to find research reports about advertising firms that have started incubator programs in market research portals. However, all of them were behind a paywall. As our last resort, we proceeded to expand the scope of the research to identify global data and searched for global advertising companies with incubator programs. Although we were able to discover a firm in France with an incubator program, data concerning the program is scarce in the public domain.
Sources
Sources

From Part 02
Quotes
  • "GroupM, the media-buying agency owned by WPP, formed a startup accelerator program that aims to support early-stage ad-tech companies. The AdVentures program will select four U.S.-based startups focused on specific business problems identified by clients, including customer experience, lifetime value modeling and AI-driven dynamic creative, per an announcement."
Quotes
  • "We’re the largest media investment group globally, directing more than $48 billion in annual advertising. We deliver winning media outcomes for brands the world over."
Quotes
  • "GroupM, WPP’s world-leading media investment group, is launching AdVentures, an accelerator initiative supporting select, innovative, early-stage companies with a three-month growth program."