It’s boom time for inde agencies. NDA has been talking to leaders across the sector to find out more about the reasons behind this wave and why clients are shifting to indies from the traditional network model. We sat down with Simon Crunden, CEO of The Freethinking Group and Managing Director at Republic of Media, to discuss the state of the indie sector, challenges, and opportunities.
Can you tell us more about The Freethinking Group and its recent strategic shift?
Up until recently, The Freethinking Group (TFG) wasn’t an externally facing brand. It operated as the umbrella company for Republic of Media, Intelligence22, Numodo and Freethinking Capital. However, we are now making a strategic pivot to present TFG as a marketing services group in its own right.
Our aim is to provide a cohesive offering to clients, where they can access everything from programmatic media planning to strategic research and insight under one roof. This shift is partly due to the strong growth of Numodo and I22, and also a necessary repositioning as the landscape for mid-sized media planning and buying agencies becomes more uncertain.
With AI rapidly advancing, we anticipate a future where certain media planning tasks could be automated. While AI might not yet be delivering the highest quality work, it does operate at an incredible speed. To stay competitive, we must remain agile and adaptable.
What are the biggest advantages and challenges for independent agencies today?
There’s been a definite shift over the past decade.
Clients are more aware that some agencies might not always trade in their best interests. Issues such as proprietary trading and inventory media have raised concerns, leading some brands to seek alternatives that provide greater transparency.
Independent agencies also tend to offer lower staff turnover, which means clients benefit from greater consistency and experience in their account teams. In our case, our average staff turnover has been under 10% over the last seven or eight years.
However, despite these advantages, the reality is that it’s still difficult for an indie agency to win a major account worth £5-15 million. The way we combat this is by ensuring we can offer clients additional services beyond media planning, such as data consultancy and strategic services, to enhance the value we provide. By solving more of a client’s challenges, we can create deeper relationships and improve margins.
Does being based in Manchester and Edinburgh impact your business?
Our dual locations have been a natural part of our evolution. We started in Manchester because our founding client, Bet365, was based there, and they remain our largest client today. We also have an office in Edinburgh, where I live.
The challenge with being outside London is that much of the UK’s media ecosystem is still concentrated there. Channel 4 no longer has an office in Scotland, Sky doesn’t have a presence there, and most major digital media owners operate primarily out of London or Manchester.
However, we’ve always believed that our regional presence gives us a valuable perspective, one that is arguably more representative of the UK as a whole.
Would we ever open a London office? Never say never, but it’s not a priority. One of the benefits we pass on to clients is lower overhead costs, something we’d lose if we took on expensive London office space. From a planning and buying perspective, our current setup allows us to be just as effective while offering better value.
Are you seeing more talent move from network agencies to independent ones?
Yes. For us, talent acquisition is one of our biggest challenges, particularly given our locations. While Manchester and Edinburgh have strong talent pools, they’re smaller than London’s.
Sometimes we get lucky, our strategy director, Claire Elder, moved from London to Edinburgh, and her experience from Havas has been a huge asset. But attracting senior talent outside London can be tough. We’ve addressed this by focusing on developing talent internally, bringing in trainees who can grow within the business.
The salary inflation of the last four years has also been challenging. We can’t always compete with London salaries, so we focus on creating an engaging and rewarding workplace. That helps with retention and means we don’t have to rely solely on high salaries to attract the best people.
The independent agency sector seems particularly collaborative. How do you see that playing out?
It’s true, there’s a strong collegiate atmosphere among indie agencies. Many of us share similar challenges, and we’re not competing in the same way the big networks do.
During the pandemic, a group of independent agency leaders started meeting regularly to navigate the crisis together. That evolved into The Alliance of Media Independents, which has strengthened relationships across the sector.
While every indie agency is different and has its own unique approach, we collectively benefit from demonstrating to clients that indies can be just as effective as network agencies. Our main request to clients is simple: don’t exclude us from pitches just because we’re independent.
What are the biggest challenges ahead for independent agencies?
The biggest issue is the economic climate. We’re not in a high-growth period, and inflation has put pressure on clients’ budgets. Marketing spend is often one of the first areas to be cut when businesses are under financial strain.
Beyond that, AI and data literacy are becoming increasingly critical. As an independent agency, we have to invest in upskilling and new technology to remain competitive. It’s a challenge, but one we’re ready to face.
Finally, what advice would you give to someone considering moving from a network to an independent agency, or even starting their own?
If you’re coming from a network, know that the indie world isn’t necessarily easier, but it can be far more rewarding. The freedom to create solutions without rigid constraints is incredibly fulfilling.
For anyone thinking of starting their own agency, my advice would be: don’t! (I say that with a smile, we could do without more competition.) But seriously, it’s incredibly hard work. Many have tried and failed. If you’re serious about it, I’d be happy to have a chat and share what I’ve learned.
Ultimately, the indie sector is thriving, and I’m a huge advocate for both independent agencies and regional business. If more brands take a chance on indies, they might be pleasantly surprised by what we can offer.
