More evidence needed to show the economic value of creative agency scaleups

According to the Department for Culture, Media and Sport (DCMS), the UK creative sector employs almost 241,000 people and contributes £18.8bn to society and the economy. But where is the in-depth data about scaleups? The industry plays a significant role in supporting other businesses but is itself helping to make the UK globally competitive – without the recognition.

According to Innovate UK, scaleup businesses have a “disproportionately large economic impact. They bring solutions to market, create highly skilled jobs, drive up productivity and maintain UK competitiveness.”

This is certainly our experience at Wadds Inc. The creative agencies we work with have talent and ambition, but crucially also a recognition of what they don’t know. It’s why they access our services to help with bolstering leadership, strategic direction, finance, innovation, access to markets, networks, tools, IP, talent management and M&A.

This mindset is something that already sets them apart. It takes courage to contract outside support in the form of a non-executive director bringing scrutiny and accountability.

What it tells us is that the founder is committed to growth and prepared to get out their own way to allow the business to expand in the most efficient manner.

Exploitation with exploration

Scaleup, in many ways, is about instigating a dual approach to business. How to make the most of the current existing market, while staying ahead of change drivers so you’re primed and ready for the next.

As Oxford Saïd teaches on its Executive Leadership programme, market exploitation and exploration is about bringing in new customer revenue in a timely and consistent way, for the least cost. This is how to achieve lasting growth.

It’s why a lot of the work we do centres around foresight and innovation – new operational processes, products and services, and a go to market strategy that delivers competitive advantage.

We also know how to find solutions to the main barriers preventing agencies scaling up, namely access to finance, finding and retaining top talent and connections and resources.

Doing it right

One of our clients is Manifest Group, an independent unified creative comms agency on a mission to build brands that change the world. Key to that mission has been sustainable growth and expanding its global footprint.

Wadds Inc.’s Sarah Waddington (far right) with the Regional Leaders Team at Manifest Group who run studios in the UK, Australia, Sweden and US.

In its first fifteen years, Manifest has expanded its UK operation to include bi-coastal USA teams in New York and LA, as well as running studios in the Nordics and Australia.

Key to its success to date has been its unique proposition of progress-driving marketing, which ensures that all of its campaigns deliver a positive impact for its clients’ audiences.

In addition, its full service offering, which spans consultancy, creative and campaigning, means it has been able to attract a global roster of clients looking to consolidate their agency mix with one consultative partner delivering global work as an extension of their team.

“Scaling against a backdrop of macro-economic instability, particularly as an independent, relatively young agency, comes with its challenges. We have the agility and flexibility to set our own path, however our expansion is all driven by revenues from the business,” said Helen Kenny, Chief Operating Officer, Manifest.

Its hugely talented and passionate leadership team are predominantly in their first leadership roles, having worked through the ranks and built the business from the ground up.

Another consideration with scaling is how to maintain its unique culture whilst growing teams in new locations and time zones. Manifest has always had a tight and nurturing culture, so it’s imperative to its business that it can retain that as it expands.

To support with these challenges and supercharge its ambition of reaching a £10m business by 2028, in 2023 Manifest introduced a number of NEDs into its global leadership team, including Wadds Inc.

“This external support, perspective and experience has been transformational, resulting in significant growth of the business and a dramatic increase in the confidence of the team on its scale-up journey,” added Kenny.

Results speak for themselves

Manifest is a great example of creative agencies contributing to the economy here and abroad, not just by the work they do for clients, but through their own global footprint.

It’s time for DCMS to provide more in-depth reporting to give industry bodies and players more data on the impact being derived.