Agencies are increasingly leveraging the opportunities afforded by the digital ecosystem to develop products which have the potential to be exploited by the agency’s brand owner clients, but which do not sit comfortably within the traditional client-agency business model.

1. Developing Branded Products – A toolkit
for Agencies
Simon Morrissey
Partner
simon.morrissey@lewissilkin.com
Tel: 020 7074 8221
@morrisseyls

2. Overview
• Products -v- Campaigns
• The drivers for change?
• Examples...
• Implementation

3. Is Branded Product Development
New?

4. Is Branded Product Development
New?

5. Products -v- Campaigns
3 key characteristics of a Product:
• Not temporary
• Can be a brand in itself or can support many brands
• Demands a different remuneration model from the rate card

6. Drivers for change?
• Convergence of Technology and Marketing
• Industry disruption – the need for consumer
engagement
• New focus on Client/Agency partnering
• Network agencies creating products for the benefit
of the whole network and their clients

7. Examples
3 routes to market:
•In-house
•3rd
Party partnering
•Client/Agency Partnering

8. In-House – Code’s Adzu

9. In House – Rockfish’s YouEarnedIt

10. In House – Made By Many’s Hackaball
• https://www.youtube.com/watch?v=H_5FcS2bzOg

11. 3rd
Party Partnering – Unilever’s
Foundry

12. Client/Agency Partnering – R/GA &
Nike
https://player.vimeo.com/video/64758806

13. Implementation - 3rd
Party Partnering
Partner resources:
•Existing supply chain e.g. manufacturers, IT suppliers
•Brand owners/market owners/anchor customer
•Hackathons
•Crowdsourcing
•Funding

14. Implementation – 3rd
Party Partnering
Key legal/commercial issues for initial engagement:
• Confidentiality
• Ownership of IP
• Remuneration
• Funding

15. 3rd
Party Partnering – Confidentiality
• Common Law
• Contract – Formal or
Informal?

16. 3rd
Party Partnering – Types of IP?
• Copyright
• Trademarks
• Design Rights
• Patents

17. 3rd
Party Partnering – Who owns the
IP?
• Joint ownership?
• Special purpose
vehicle?
• Assignment?
• Cross licensing?

18. 3rd
Party Partnering - Remuneration
• Time & Materials
• Value Based
• Fixed Cost/Annual Cost
• Revenue Sharing
• Equity – e.g. Kickstarter
• Acquisition

19. Implementation – Client/Agency
Partnering
What about the Client/Agency Agreement?
•Separate business unit?

20. Over to you...
• Good?
• Bad?
• Indifferent?

21. Thank you