Elastic Agencies

type - trends
Responding to the demands of Post-purpose Brands while facing rising inflation, creative agencies must embrace flexibility to keep clients and talent in-house.

Drivers: what’s happening

During the pandemic and its aftermath, brands had no choice but to adapt to consumers’ higher standards, value shifts and demand for greater transparency. Creative agencies are now following the same path as their B2B clients continue to re-evaluate their approach to branding – seeking both innovation and authenticity.

Brexit, Covid, inflation, the cost of living crisis and the war in Ukraine have also restricted budgets on the client side while raising agency fees. ‘Agencies are encountering a sector-wide skills shortage coupled with increases in recruitment fees; wage pressures with increased competition for talented people; individuals seeking higher salaries to offset the cost of living; raw material increases; and soaring energy and production bills,’ said Paul Bainsfair, director general of the Institute of Practitioners in Advertising, in a 2022 statement.

But new agencies and creative ventures are emerging, while the advertising agencies market is expected to reach a value of £373.3bn ($463.8bn, €422bn) in 2027, increasing at a CAGR of 4.3% (source: Research and Markets).


Published by:

16 May 2023

Author: Marta Indeka, Emily Rhodes and Dan Hastings-Narayanin

Image: Not Wieden+Kennedy, UK


Katchin, UK

Case studies: what’s new

Not Wieden+Kennedy

In January 2023, the London branch of global creative agency Wieden+Kennedy, first established in Portland, Oregon, in 1982, introduced the cheekily named Not Wieden+Kennedy, an in-house studio dedicated to branding and design. The launch included the Not Machine, a digital generator creating colourful word marks and animations. ‘We obviously had to put something online to start a new chapter, but did not want to create just a logo,’ brand director Anika Ramani told LS:N Global. She added: ‘Jonathan Plackett, one of our creative technologists, created the first working version of the Not Machine in about two to three days. It was too good just to be kept within our team.’

Nexus Design Studio

In February 2023, London- and Los Angeles-based animation specialist Nexus Studios opened Nexus Design Studio, a new division dedicated to motion design. The new team of ‘VFX gurus’ and ‘animation queens’ led by motion designer Harry Butt will work on bespoke projects focusing on graphic aesthetics and typography for everything from social media assets to website design and product launch films. ‘The safety of having so much talent around us means that we can push the industry and format into new exciting places, with the confidence to take on big jobs and steer people into exciting motion design executions,’ says Butt.

‘Many clients that have contacted Not Wieden+Kennedy told us: ‘We have always loved Wieden+Kennedy, but we never thought we would be able to get branding and design services from you before.’
Adam Rix, creative director, Not Wieden+Kennedy

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