TMCnet News
Austin becoming key player in digital ad sector [Austin American-Statesman](Austin American-Statesman (TX) Via Acquire Media NewsEdge) Oct. 25--When Austin ad agency nFusion was born 14 years ago, Internet advertising was still mostly a novelty and nobody had ever heard of such things as a mobile app or Twitter. Today, things are very different. "Technology has always changed the way marketing happens," said John Ellett, CEO of nFusion. "And the Internet, mobile devices and social media were dramatic changes to how that marketing happens." These days, nFusion is one of the Central Texas firms that has led the way on embracing digital advertising -- and in doing so has helped Austin become a key player in the digital advertising and marketing sector. Advertisers are increasingly focused on reaching consumers on their electronic devices. Industry experts say digital advertising products -- such as banner ads on websites, online commercials and interactives -- are seeing growth at a faster clip than the overall advertising sector. Overall, Austin ad agencies have seen their employment levels jump to the highest point in 10 years. In 2013, Austin had 2,296 ad agency workers, up 39 percent since 2003, according to Moscow, Idaho-based Economic Modeling Specialists International. And in a study this year, Ad Age reported digital work grew its share of U.S. agency revenue from 25.8 percent in 2009 to more than a third, 35.3 percent, last year. Digital revenue grew 13.8 percent and is projected to see a bigger surge this year as non-digital advertising continues to decline. Thanks in part to its tech-savvy population, Austin's advertising sector has been able to turn that trend to its advantage. "Austin has an obvious trajectory bound to technology, and certainly creative technology is very interesting as it relates to advertising agencies," said Keith Johnston, chief operating officer at Austin advertising agency T3. "There is a groundswell, startup mentality. There are creatively minded people who want to blend creativity with technology. It's a good mix." Some of the area's traditional advertising powers -- including GSD&M, LatinWorks, McGarrah Jessee -- are seeing significant increases in digital work, while national firms such as Razorfish and R/GA are adding regional offices in Austin. And while New York and San Francisco have established themselves among the top digital advertising markets, Austin has become a strong secondary market, Johnston said. At the same time, an influx of graduates from the University of Texas and other area schools gives digital advertising firms and efforts a steady pipeline from where to hire, said Neal Burns, a University of Texas advertising professor. The university is one of "the largest at turning out students who ...are starting agencies or bringing a kind of digital emphasis to the work," Burns said. Ly Tran, director of digital strategy and architecture at Austin-based Proof Advertising, said the local talent pool has grown as media companies such as Facebook -- which once set up online ad reps in Chicago, New York, Los Angeles or Dallas -- add digital sales reps locally. That's a trend not seen as recently as five years ago, Tran said. "This speaks to the vitality and stability of the digital advertising scene in Austin where high profile companies like Facebook or Amazon's WashingtonPost.com have invested and set up some sort of camp," Tran said. Local firms like T3 and nFusion have benefited from that growth. T3, founded in 1989 by Gay Gaddis, was locally at the forefront, jumping into digital campaigns with Dell, Marriott and Chase early on. Today, the agency has an in-house engineering team and innovation lab. It also has grown to nearly 200 employees -- and even has offices in San Francisco and New York, itself. "Over the years, the agency has evolved into a tech-fueled creative powerhouse embracing change by proactively adopting new technologies to stay ahead of the curve," said Ben Gaddis, chief technology officer at T3. 'Lots of possibilities' Meanwhile, even smaller Austin firms are having success with the transition to digital. Blackboard Co., a five-year-old Austin firm with 15 workers, made a splash with its Tillamook Cheese online campaign after the brand debuted in Texas in 2012. It's also seen success with digital work for a New Mexico tourism effort. "Digital is an enormous part of our business," said Tom Hollerbach, managing director and chief operating officer at Blackboard. "We tend to take a 360 degree approach to the work we do for our clients, with the intent of building communities of supporters around brands." Local agency lookthinkmake, which has 17 employees, has also added an in-house digital team in the past two years. "Digital is a flexible medium with lots of possibilities, " said partner and creative director Sean Thompson. "It's important that our agency has thinkers that can work in all media in-house, so that the digital work connects with the print work and the PR work to tell one comprehensive story." Experts say the South by Southwest Interactive festival, which was launched in 1994, has helped fuel the growth of digital advertising in Austin. "With events like SXSW, we keep fostering people and companies and moments that push the boundaries of digital creation and that attract people and attention worldwide," said Tran. "When it comes to the world of digital advertising, Austin is the place to be and be seen now more than ever." Johnston agrees. Through Interactive, "more of the ad world's major agencies were sending their people here to learn about digital technology to collaborate with others around the country," he said. "Austin was essentially a meeting place for that kind of evolution and brands creating a presence here. As much as it's a conference, it became a meeting place for digitally focused creative talent." New York-based R/GA, a 37-year-old U.S. agency with 15 offices worldwide employing 1,475, opened up a downtown area Austin office in late 2012. Experts say the move was another sign that Austin was on the map for the national digital advertising scene. Today, R/GA employs 25 Austin workers, said Candice Hahn, vice president and managing director for R/GA Austin. "SXSW has put Austin on the map as a hub for technology, for art, innovation and for music," Hahn said. "We saw a great opportunity in Austin, not only to be a part of the community, but as a place for innovation and advancements in our space. We think there is also great talent here, and a culture that very much aligns with ours." ___ (c)2014 Austin American-Statesman, Texas Visit Austin American-Statesman, Texas at www.statesman.com Distributed by MCT Information Services |