Call it Destiny
by David KilburnCall it destiny. There is a tide in the affairs of men which
can lead to fortune. The catch: You have to make your own opportunity. Andreas Dannenberg,
David Carlson and Michael Lim have taken that adage to heart. These men are pioneers,
entrepreneurs who braved skeptics and opened ad agencies in the Far East. Despite tough
times, the daring troika is proof positive that enterprise pays. Take the case of Andreas
Dannenberg. He spent most of 1982 photographing minority ethnic groups in China, work
which was exhibited in New York, Tokyo and showcased in several international magazines.
In between shooting covers for Time, he did commercial work for Kodak and BMW. Then fate
intervened.
A client introduced him to Dentsu, which was
so attracted by his creative flair it asked him to execute work for international clients
and assist in new business pitches. This break led him to propose a new
companyDentsu International. Dannenbergs idea was nothing short of
revolutionary: Serve Western clients and Western agencies in a Western style, with the
back office provided by the main agency. In essence, he wanted to provide an environment
where high fliers could develop cuttingedge international skills. The proposal was
debated and rejected by Dentsu in 1987. The company dismissed the notion that it needed to
be more international on its home turf. Undeterred, Dannenberg picked up the gauntlet.
"I really believed there was an opportunity for a more Western approach to
communication, so I went ahead and started ADmedia that same year," says
Dannenberg. Winning clients was easy. "Northern Feather and BMW were quick to sign
on. A Japanese creative director joined, but pulled out once premises had been leased and
the company launched. "I was faced with a major disaster, my Japanese language skills
werent very good, the bills were rolling in and there were client commitments,"
Dannenberg recalls. Some entrepreneurs would simply throw in the towel; Dannenberg shifted
into high gear. While working for his initial clients, he became a freelancer to pay the
bills. And his persistence paid off. ADmedias 97 billingsan
impressive $60 millionput the shop in the big leagues. Thats thanks to
ADs stellar roster, including BMW, Club Med, Givenchy, Shiseido and Mercedes.
Plus, since the agency parlayed a dream into a fiscal success, it looks attractive to
brandname agencies hoping to grow in Asia. Indeed, agency suitors think Dannenberg
would be happy to sell. Think again. At 37, Dannenberg is buildingnot
retiringhis business. He already has small subsidiaries in Hamburg, Germany, and
London, and plans to expand to New York and Shanghai. "We need the network if
were not to miss opportunities from some clients, especially the Japanese
ones," he says. ADmedias strength lies in Dannenbergs driving
passion for creativity and quality. Born at the pinnacle of Japans economic success,
ADmedia has steadily prospered, despite a declining Japanese economy.
Of course, as a maverick in Asia, Dannenberg
is not alone. Former Leo Burnett creative director David Carlson braved troubled times,
too. He hung his shingle, David Carlson Creative, in Seoul, S. Korea, in January 97,
when pundits predicted economic growth at no more than 6 percent, with advertising missing
the usual doubledigit acceleration. Carlson was willing to defy expectations,
although he "didnt expect the bottom to drop out last December." He first
came to Korea in 95 on a short assignment from Burnett. When it came time to leave,
Carlson found himself drawn to the country. The smart money said Seoul hadnt
achieved its business potential. After all, the city then boasted the secondlargest
ad industry in Asia. "Its not full grown emotionally," says Carlson,
"but its growing quickly. So if I had the choice of starting an agency in
Chicagocold, mature, conservativeand herevibrant, cantankerous but
ambitious theres much more excitement here." Carlsons business
ground to a halt during the winter, but his vision remains. "Theres no reward
for not completing the journey," he says. He renegotiated his lease and together with
his two Korean colleagues, cut salary and expenses. And he advertised. It worked.
Carlsons ads utilize word play, visual
elegance and a gentlebutdry humor. Now, theres enough new business to
meet the young agencys needs. In February and March, revenues topped those for all
of 97. LG Electronics, the Korean government and Hyundai Motor are clients. Some
large Korean agencies are also talking of outsourcing work to Carlson. In fact, economists
say Korea is healing, which is good news for Carlson.
Things are different, however, in Myanmar, a
country out of sync with the 20th century. Here, Asias youngest ad industry is
trying to survive. In 1992, this closed country opened its doors to the world. Heartened,
veterinarian Dr. Tha Tun Oo (Michael Lim to Englishspeaking friends) founded a new
magazine, Today, as a guide for tourists. Then his break came. Japanese visitors from
Nikkeisha, a Tokyo ad agency, were looking for media and an affiliate to advertise Casio.
They persuaded Oo to start an ad agency. "Normal practice is for media to own
agencies, as in Japan, they said. It wasnt till McCannErickson visited later
that we learned differently," he recalls. With no established shops to serve as
models, and in a country where foreign publications, including Adweek are banned, Lim was
on his own. But help was at hand. In Singapore, he stumbled on books by David Ogilvy.
"These opened our eyes. We remodeled the agency based on what they said and began to
study the consumer." Thailands leading independent agency, Spa Advertising,
contact Oo and the two formed a second agency, Spa Today Advertising, as a joint venture
to handle Thai and Southeast Asian clients in Myanmar. Lim then approached Ogilvy &
Mather which was eyeing Asias newest market. But for the introduction of
U.S.led economic sanctions against Myanmars military rulers, Today Advertising
might now be part of the Ogilvy network. But sanctions forced Western clients and agencies
to pull out, while Asias economic problems meant regional clients cut budgets back.
Still, Lim aims to keep his 50 staffers and hopes to bill over $ 1 million this year. His
optimism isnt dimmed by hardships. Friends in the ad industry help sustain his
vision. "Things are bleak today. With so little advertising, we really have a great
opportunity to focus on training and improving our skills, so that when things improve,
well be a much better agency." Call it destiny. These three entrepreneurs are
willing to endure the slings and arrows of outrageous fortuneand win. |
Originally published in ADWEEK, April 6th
1998 |