England has a long and painful history of meddling with the Scots -
and I’m only talking ad agencies here, I won’t even begin to get
involved in the antics of Edward II. From CDP’s on-off relationship with
Marr Associates, to Saatchi & Saatchi’s unfortunate experience with Hall
Advertising, the Anglo-Scottish advertising experience has hardly set
the world alight.
But that might be about to change. Osprey set the ball rolling last
month by spending around pounds 1.2 million to acquire Covey
Advertising, the Edinburgh-based shop. And it doesn’t stop there. The
Media Business Group Scotland is now up and running in Edinburgh, while
a new-media independent, MediaVision, is preparing to open its doors for
business with the help of backing from MediaVest North. CIA Medianetwork
has now assumed complete control of its Scottish joint venture company
with the Morgan Partnership. Oh, and lest we forget, the last of the
Scottish multinationals, McCann-Erickson, is on the brink of buying one
of Scotland’s big two, the Leith Agency.
The attraction of Scottish adland is certainly real enough south of the
border, and it’s not difficult to see why. Not least is the fact that
adspend has risen by a quarter over the past three years, up to around
pounds 371 million this year. Add to that the dawning realisation of the
advantages devolution might bring, and suddenly the future’s not just
bright, it’s positively tartan.
’There was a lot of speculation in the press about the damage devolution
might cause and plenty of pre-referendum talk about companies relocating
to England to help save taxes,’ Adrian Jeffery, creative partner at the
1576 agency, admits. ’All of this seemed to suggest it would be bad news
for Scottish agencies. But, since the vote, I think people have started
to realise the considerable advantages devolution will bring.’
These advantages are not just intangible benefits - such as a developing
sense of Scottish nationhood - there should be practical advantages as
well.
’There will inevitably be more Scottish institutions coming into
existence after devolution,’ Jeffery points out, ’and while there is
absolutely no reason that these institutions should not appoint an ad
agency from England, in practice they do tend, for obvious reasons, to
favour Scottish agencies.’
Clients such as the Scottish Office and the Health Education Authority
are already some of the biggest Scottish advertisers and this sector is
certain to grow further after devolution.
For Osprey, the move to Scotland was certainly facilitated by the
economic vitality of the country, even if the prime motivation behind
the acquisition was the availability of the right agency at the right
sort of price. Osprey is, after all, also looking for acquisition
targets in Birmingham and Manchester.
Even though Covey will be branded as Osprey Scotland, the chairman, Jack
Rubins, says he is concerned not to make the mistakes other English
predators have in the past. ’Scotland has proved an especially volatile
market in the past and the big networks have not prospered,’ he admits.
Hall Advertising, one of the biggest and most successful agencies in
Scotland when it was acquired by Saatchis, failed to adjust to life as a
small part of big multinational. The business was eventually sold to
Hall Harrison Cowley, although the name was retained by Saatchis, and
eventually put into liquidation.
’I don’t think networks have always been run in the right way,’ Rubins
says. ’What we intend to do is let them run themselves as much as
possible.
We’ll be keeping an eye on profitability but we are investing in their
talent and that’s what we have to encourage. You do that by letting them
get on with it.’
The media independent sector has been left to its own devices and has
fared no less well for that. But growth so far has been largely fuelled
by the development of local talent. Now that is about to change. The
Media Business Group opened its office on 1 September and will, for the
time being, be run by the group’s well respected broadcast director,
Paul van Barthold.
’Scottish advertising used to be dominated by the full-service agencies
but, as they have declined over the last couple of years, the influence
of independents has increased,’ Stewart Feather, director of Scotland’s
largest independent, Feather Brooksbank, says. ’So much so that now
there is a greater proportion of business at independents here than
there is in the rest of the UK.’
Feather Brooksbank has grown from a start-up in 1991 and will bill more
than pounds 50 million by the year end. Faulds is the only major
Scottish full-service agency.
That could alter. If McCanns’ merger talks with the Leith are resolved,
it would be prepared to launch its media dependant, Universal, in
Scotland.
Although the Leith’s major accounts - Irn-Bru and Tennent’s - are placed
direct by the client, there’s little doubt the association could be
beneficial.
Whether McCanns’ acquisition of the Leith could be viewed in the same
light is questionable. Leaving aside client conflicts, such as Irn-Bru
and Coca-Cola, the marriage would at best be an attraction of
opposites.
And the Leith’s pre-eminent creative reputation is already under threat
from the likes of 1576.
And if the volatility of the Scottish ad scene has taught us anything,
it is that reputation counts for little. The rewards, it seems, are only
there for performance.
’The market is more sophisticated now than it was a few years ago,’ Jim
Faulds, the Faulds chairman, concedes. ’When we started out we were
small - some of the big agencies underestimated us and didn’t take us
too seriously.
We’re not going to make the same mistake. This market is getting more
competitive and advanced all the time. There has been a freshening of
confidence following the devolution vote, and there is a lot of interest
in Scotland from outside. In the end, we are now all trying to ensure
that we have just the right people and just the right set-ups to meet
all these challenges.’
