Life after the GFC: Finding opportunity in a growth-challenged agency economy
After John Ford’s The One Centre went into administration back in 2009, many proclaimed its demise as a precautionary tale for agencies trying to keep afloat post-GFC. Now, nearly nine years later, Ford considers what the wider industry can learn from his experience.
The One Centre was a high-growth business before the GFC hit – hard – in 2008. We had grown revenue to $12.5 million annually and built a blue chip client base with brands like Woolworths, American Express, Jetstar, The Red Cross and Freedom.
The agency’s overseas work was booming, branding the Asian Games in Qatar, creating global platforms for Audi, rebranding Tiger Beer in 50 markets, and working with the world’s biggest developer, Nakheel, branding Palm Mall and other mega-developments in Dubai. We were twice named in BRW’s Fast 100 list of fast-growing companies, and were recognised as a Young Export Champion by the Federal Government’s Minister for Trade and Austrade.
Then the GFC struck, and overnight, Nakheel, our biggest debtor stopped paying, and a number of clients locally and internationally were ordered from on high to stop all discretionary spending. The combo of a big bad debt offshore and sharp slowdown crippled cashflow and sent The One Centre into administration in 2009.
A year later, I reopened The One Centre after deciding not to let a one-off global crisis determine its fate. It was an opportunity to completely rethink our model and rebuild our services from scratch to meet new and emerging client needs.
Kenny would be proud.
Nice piece, John – good analysis and well argued case for insight and original thinking in an increasingly commoditised space.
Thanks for sharing your thoughts on this constantly changing industry. With all the martech out there, great ideas, emotions, and incredible experiences are still the key elements that stop an audience in its track. Thanks for sharing John!
John,
As insightful as ever from a man who has experienced more than most.
Congrats Damian
Wise as ever John.