At dinner earlier this week, Jim Kite, Starcom MediaVest Group‘s Strategic Development Director, covered the topic of how he works closely with tech startups by connecting them with Starcom’s existing clients (like Samsung, P&G, Lidl and Heineken to name drop a little). Here are his 5 reasons that agencies work with startups:
Clients expect innovation as well as the basics from their media agency. What value is the agency adding? There needs to be constant innovation – and startups are primed to execute this.
Partnering is a need for media agencies as it’s a battle to keep up with all of the tech changes alone. Working with others also aids an agency’s own product development.
The average age at Starcom is 31, and retaining talent is difficult. The majority of staff at startups are millenials. The startup industry is effectively a talent magnet.
Working with startups helps build a brand and is a differentiator. Ultimately, it’s attractive to clients.
Startups have ‘innovation-funding’. Matching a client with a start up is new revenue, as a start up may well become a client in the future. Making the whole process go full circle.