I co-founded Collider four years ago, and in that time I’ve seen many partnerships form between start-ups and brands.
Brands can really benefit from working with start-ups: they get access to new technology, new thinking and the chance to reach and engage with consumers in different ways. They’re refreshed and invigorated by the experience.
It works best when both sides start small, and take time to understand each other’s capabilities, rather than seeking to make a big impact from the beginning.
If there’s a fault-line, it’s in this area, when the brands want to go too fast — such as scaling up globally — too early.
The start-ups, naturally, get over-excited. They say to themselves: “It’s a big contract, so of course we can do it.” They can’t help themselves. Many are less than a year old; they’re keen to prove themselves and get a big-name client or brand on their credentials. The ability to say ‘no’ is just not in their DNA.
But that places an enormous strain on the start-up, and sometimes when they agree to do it they don’t even know if their technology will work in all the countries.
I’ve seen this the hard way. One of the things that happens when contracts get larger is that the start-up gets put into the standard procurement process, and treated the same as any other large, established supplier.
But you can’t treat them this way. So I caution everyone: make it a trial, make it contained, and I say to the brand that if you can, help the star-up with time, resource and tech support.
What this means is that, at the client end, someone has to champion the startup. They need to understand the limitations of start-up, their mentality, and then work to offset those.
The best partnerships between startups and brands happen when the client CEO or CMO is involved right from the start. If that happens, then two things are likely to occur: one is that the client can make resources available to help the startup; the second is that there’s more acceptance of the need to trial and experiment.
I’ve noticed that, at the client end, when more junior staff are driving the project, they’re the ones who want to go too fast, usually because they want to prove themselves.
Collider works closely with brands such as the Financial Times, dunnhumby, Unilever and Haymarket, all who are looking for closer connections with startups and ways to innovate from the inside.
Often as they first forge a partnership, it’s all incredibly new, and the tech unproven. They work for months, putting in resource and helping them to develop the product.
But by starting small, the result is a tech product which they have helped to shape, and which they really understand. That gives them a competitive advantage.
I’ve been involved with startups in one way or another for five years now. I’ve learnt that you’ve got to be completely realistic about what can be done, trial and experiment, and don’t bet the farm.
If you take that approach, then everybody wins.
Join us for the launch of a new IPA initiative — a charter enshrining good practice commitments for agencies that want to deal fairly and openly when partnering with start-ups. At Advertising Week 2016 we heard some case examples of what not to do when entering this new and exciting area. Since then we’ve been collating more examples of good and bad behaviour from agencies, start-ups and intermediaries.
By consulting with practitioners across the spectrum, we have compiled a guide to best practice and drawn up a charter for agencies to commit to. We are asking the industry to abide by this new charter. Our panel will outline top tips for agencies and start-ups, and 10 new best practice ‘marriage vows’ to abide by. Find out more about the event here.
