by Herman Manson (@marklives) The story of Artifact Advertising is one of entrepreneurial tenacity, a couple of near-misses and, finally, a series of success that is quickly putting the agency on the map.
It was started in 1994 by Andy Taoushiani and a business partner. The former was fresh out of college. His family’s entrepreneurial can-do spirit — they had been involved in running a number of Greek corner cafés and restaurants — meant Taoushiani never seriously considered working for anybody but himself.
Started small
He ran a bar with his brother while he was studying graphic design, with the intention of running his own studio and print shop once he had the know-how.
It started small. Flyers and business-cards and letterheads small, in fact. In the mid-90’s, people still got stuff printed and there were fewer small studios around. Entry into the market went smoother than expected.
But the partners were pulling in different directions, and each ended up going their own way. Taoushiani now ran the business after hours while he worked at a local repro house.
Key differentiator
Traditional agencies didn’t understand repro, says Taoushiani, and it would be a key differentiator for the Artifact Advertising Taoushiani relaunched in 1997.
The agency was getting more and more below-the-line work in, doing design jobs, brochures, corporate IDs and leaflets. By 2000 it was employing five people. Then it won the Epson account. It was a big win for a five-man company, and a turning point for the business.
In 2001, Wimpy went out to pitch. Taoushiani remembers several dozen agencies competing for the business. These were the days before ACA codes and best practice. It was late December and client needed some posters printed (it had nothing to do with the actual the pitch, but it would be Artifact’s foot in the door) — quickly. Most of the ad agencies had already closed their doors. Taoushiani ran the job. He’d also hired a ‘web design guy’ at a time when many ad agencies were still figuring out email.
Combined effect
The combined effect was to get Artifact into round two of the pitch and it walked away as the new Wimpy below-the-line agency. The agency quickly grew to 12 people.
Then disaster struck. Pleasure Foods (owners of Wimpy) got sold off to Famous Brands in 2003, and Artifact lost the account and 70% of its revenues. Taoushiani says the agency had built up some reserves in the good years and had kept its overheads low. It was hard times but survivable.
Gradually, the agency brought on board new business, and Taoushiani expanded its digital reach through a new online division. As a result, Taoushiani and his team were learning a lot about online marketing, attending conferences and courses. The new studio didn’t last and was quickly integrated back into the main agency after it failed to pick up any significant business.
Just become TTL
Less strategy than circumstance, Artifact Advertising had just become a through-the-line business.
Also, the loss of Wimpy wasn’t a complete disaster. In due course, the agency picked up the Taste Group business (first as its below-the-line agency and, more recently, the through-the-line business), which includes brands such as Scooters Pizza, St Elmo’s Woodfired Pizza, Maxi’s Restaurants, Zebro’s Chicken and The Fish & Chip Co.
Then, unexpectedly, Artifact won the Infinity business (the luxury vehicle division of Japanese automaker Nissan) in 2011. Not the BTL business, or the digital business, but all of it. It gave the agency confidence in itself and Taoushiani decided to really start competing.
Inventory sold out
Infinity lead to the digital business for Nissan, and its Nissan Micro activation sold out inventory across the country.
At the end of 2013, it picked up SupaQuick after a competitive pitch involving five agencies. Then came the news that Taste is bringing Domino’s to SA and that it would retain Artifact as its agency on the brand launch.
Current operations and plans
The team of 40 now operates out of offices in Johannesburg and, more recently, Cape Town.
Currently, Taoushiani is working on the agency’s two-year plan to stay competitive in a changing market; it will identify key marketing trends to see where Artifact should be investing resources (think mobile and content management) while also strengthening its ATL credentials.
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Enjoyed getting the full history, thought I knew it…well done Andy