Lockdown boom for agency startups - Wadds Inc. report
COVID-19 has seen an explosion of new PR agencies. A new Wadds Inc. report explores what’s driven this burst of entrepreneurial activity. It’s a hugely optimistic and powerful legacy from an awful period of time.
More than 50 new PR agencies have been founded in the UK during the COVID-19 pandemic according to a report published today by Wadds Inc. It provides insights into the market and clear direction and inspiration for anyone thinking of starting their own agency.
COVID-19 UK PR Agency Startup report
The COVID-19 PR Agency Startup report explores why such a large number of agencies have been started in such a relatively short period of time. It includes a list of startup agencies and characterises them by proposition location, funding and the date they were founded.
The report is dedicated to anyone who has founded an agency during the COVID-19 pandemic. It celebrates your work. It’s also intended as a source of inspiration for anyone considering setting up their own agency.
COVID-19 created new routines and lifestyle reevaluation
The lockdown created new routines and space for practitioners to think about their career and life. It shone a light on opportunity and gaps in the agency market. The report found that two-fifths of agency startups were founded during the first lockdown between February and July.
Proposition critical to success
The UK agency market is saturated with more than 4,500 agencies according to the Office for National Statistics (ONS). New agencies launching into such a crowded market need a strong proposition.
Startups recorded in the study are focused on one of three areas of innovation: services, business model or specialism.
Services: creativity, data and lead generation, eg. Happy Yolk, Hard Numbers and Simply Thought
Supply: innovation in business model, eg. Inpulsus and Little Mesters
Specialism: environment, social and governance (ESG), fintech and healthcare, eg. BB Partners, Blue Lozenge, Look After and Second Mountain Communications
Sources of funding
The majority of agency founders have funded their new businesses from savings or lifestyle changes. Alternative approaches include raising funds from family and friends or seeking investment from a complimentary agency partner to help cover overheads.
Virtual working creates competitive parity
The report finds that COVID-19 has leveled-up competition for startup agencies. Founders have been able to create content and meet people in a way that wasn’t previously possible. Video calls mean that everyone presents the same in credential and new business meetings.
Location, location, location
The report found that two-thirds of the startups were located in London reflecting the location of their previous employers or personal circumstances. This is despite the fact that the pandemic has shown that there is no need for creative or professional services to be based in London. It may be that we’ll start to see a shift as a second order effect of the pandemic.
Industry support
Everyone interviewed celebrated the support that their launch and new agency has received from the industry. It is a vibrant and supportive community. The UK is a great place to start a public relations business.
Industry comment: CIPR and PRCA
“The COVID-19 UK public relations agency startup report is an inspiring read. It’s hard not to feel optimistic about the future of our industry after reading the findings. The PR industry has adapted remarkably well to the pandemic and the explosion of new agencies is testament to the strength of our practice,” said Francis Ingham, Director General, PRCA.
“This is a fascinating, innovative piece of research into the life of any agency from start up. I hope, like the famous TV series Seven Up!, we will get the chance to follow their stories as they grow and evolve,” said Mandy Pearse, President, CIPR.
Agency profiles
The report includes eight startup PR agency profiles: Second Mountain Communications, BB Partners, Little Mesters, Hard Numbers, Inpulsus, Look After, Happy Yolk and CommsRebel.
Availability
The 40-page report is available in HTML and Adobe PDF. A print edition is also available.
Print version - please contact stephen.waddington@wadds.co.uk
Methodology
Information about new agency launches was collated from PRovoke, PRWeek and social media. It was cross referenced with legal company registrations and agencies’ own websites. The database is limited to agencies that were formally incorporated in the UK between 1 January 2020 to 31 March 2021.
If you have launched a lockdown agency and have been omitted from the report please contact stephen.waddington@wadds.co.uk. We’d love to add you to the dataset. Two of the agencies included in the report (BHM and Hard Numbers) are Wadds Inc. clients.
