Tuesday, September 29, 2015

Startups: R/GA Says If You Can't Beat Them, Join Them

This article gives an interesting overview of a large creative agency that is struggling to stay relevant in the world of start ups and the internet of things. R/GA has decided to create their own think tank and invest not only in the funding of start ups but also in their development through a mentorship program. What does R/GA get for all of their time, effort, and money? An equity stake in the startup as well as a little more credibility when it comes to establishing themselves as an agency that can help startups succeed.

It seems that a lot of companies are following this trend now where they invest in products and services that might have nothing to do with what their core brand does but it makes them seem more connected to their consumers and to the businesses they are trying to sell to. For instance, several years ago, Citigroup launched a hackathon titled the Citi Mobile Challenge. They go to different countries and open up their APIs for developers to come up with creative solutions in the banking space. It has been a major success for the company both in terms of gaining PR for being "cool and connected" with the younger, digital connected generation as well as from a business perspective to generate new, forward thinking ideas for the company.

LINK: http://adage.com/article/special-report-advertising-week-2015/startups-r-ga-beat-join/300632/

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