Here in sunny Kelowna, BC, the landscape for marketing services has changed almost beyond recognition in the last year or so.
From 2003 to 2008 millions of dollars poured in to the sector from property developers and the financiers that supported them. In 2009 that income stream practically dried up. This demand-side change directly and indirectly lead to a number of supply-side changes. Traditional and Integrated service providers either struggled to cope, or re-invented themselves, while companies founded on digital media flourished – due, in part at least, to many budget holders believing that their dollars were now best spent online.
This effect can be demonstrated by looking at four local companies, their positions at the peak of the property boom in 2007 and their comparative positions today.
Artistech New Media
The ownership of the company remains as it has since 2004, with 3 principals (Brad Marshall, Giuseppe Simpatico and Vivian Turgeon). Additional staff numbers have grown from 2 in 2007 to a team of 9 in 2010 and the firm has established itself as a leading full-service digital agency, with local, provincial, national and international clients.
With their blend of website design, website management, search marketing and social media marketing the company seems well positioned to cater to clients who have a defined marketing strategy in which digital media activities dominate.
Artistech are certainly an example of how digital agencies have flourished in a time of economic uncertainty.
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MacLean Group Marketing
In 2007 MacLean Group were one of the agencies that were feeling the benefit of the booming property development sector. A relocation of the business to expanded, more costly space was on the agenda. As well as the sole proprietor (David MacLean) a team of 11 worked full time at the agency. These figures somewhat under-represent the economic impact the agency had as significant quantities of digital media work (which many integrated agencies handle in-house) were outsourced, primarily to Artistech New Media (see above).
In January 2008 the agency won an unprecedented number of awards at the CHBA’s Tommie Awards. It was then rebranded under the slogan “marketing that matters” accompanied by positioning that alluded to social change.
Later in 2008 the agency was advertised for sale at $1.25million with reported revenues of $1.7million and a reported net profit of $200,000. Reason for sale was detailed as “owner desires to move on to new ventures”.
Following a failure to sell, the business today is essentially a one-man marketing consultancy, with all the client-service and design talent from the agency’s peak period having moved on to new ventures/employment.
Nowhere is the impact of the 2009 economic slowdown more apparent.
Website | Facebook | No Twitter available
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Madhouse Creative / Touchpoint
Madhouse Creative were another local agency that significantly capitalized on the Okanagan Valley’s property development boom. At its peak the agency employed 14 staff plus joint owners Tammy Moore and Scott Davis. In 2007 the agency was relocated from a heritage house to a larger and more expensive space (oddly enough in the same building that competitor MacLean Group was to soon move in to).
In late 2008, early 2009 an apparent ownership tussle was played out. This eventually led to Tammy Moore taking sole ownership of the company. The agency now employs 4 full time staff in addition to the owner, part-timers and contractors.
Significantly, Madhouse Creative changed it’s name to Touchpoint in 2009, and has boldly positioned itself as a Social Marketing specialist with branding that includes the phrase “Specializing in Marketing for Social Change”. With two Canadian Accredited Advertising Professionals on board, they seem well positioned to service their newly defined target market and are a great example of a re-invention.
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Twin Creek Media
Initially positioned as a web design company, Twin Creek Media shifted its positioning significantly in 2007 to that of a full-service marketing agency. This move was accompanied by the appointment of Ron Halliday as CEO of the agency – a marketing veteran with more letters after his name than in it! Owner James Shaw retained sole ownership and took the position of President/Creative Director.
As 2010 begins, James has taken up the role of CEO, with Ron having moved on to other ventures. The company employees 3 full time staff as well as a part-time staff of 11.
Twin Creek’s service mix of Internet Marketing, Traditional Marketing and Creative Design seems to resonate well across various industry sectors. Twin Creek seems well set up to service clients that have a defined Marketing Strategy that includes a mix of Digital and Traditional media and are an example of how a bold but cost conscious approach to business has seen an agency grow stronger through a recession.
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How’s the Marketing industry in your city doing?
Does the “Kelowna Experience” outlined above seem like a familiar story to you? Has your city seen similar shifts? Who have you seen fail, scrape by, flourish or re-invent themselves in a time of recession? Your stories, comments and questions are more than welcome!
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Other Marketing Service Providers in Kelowna
This article is NOT intended to be an exhaustive guide to Kelowna marketing service providers or web design companies. Other marketing agencies, marketing consultants and web design companies include the following:
Richard Taylor of RT Strategy (that’s me, and therefore I get to go 1st!) : Website | Facebook | Twitter
Acro Media : Website | Twitter | Facebook not available
Atomic 55: Website | Facebook | Twitter
Dawn Antle of Get Noticed Marketing : Website | Facebook | Twitter
Scott Davis of Culturactive : Website | Facebook | Twitter (culturactive) | Twitter (scottpdavis)
Think Marketing: Website | Facebook | Twitter not available
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Great article. And a little further South in Penticton, we have Taylormade Ideas!
Excellent article Richard. A lot of helpful examples.
Nice article – very interesting
Interesting article and very surprising how many of the companies have fared. It seems that most companies tied their fates to the housing and development markets but we’ll see how they fare in the next 2 years moving forward. Again great article.
I enjoyed touring your website and your objective review of the marketing companies in Kelowna. My intention is to freelance
and humbly provide my abilties where they may be needed going forward. Should I be able to assist you, I would be delighted to serve.
Continued success,
Ron ‘Doc’ Halliday
Great Article Richard. Good to see you doing well.
Taylor
Nice website and everybody should totally comply with the author on this one here. Its hillarious, thats what i should write about this post.