Even The Best New Products Need Marketing, And They Need It Now

According to The Wall Street Journal, marketing and advertising firms are making direct investments through venture investment arms, using their advertising expertise as a selling point in order to get a piece of fast-growing start-ups.

Among the firms that have emerged as investors include established New York agency Kirshenbaum Bond Senecal + Partners, cross-town upstart Consigliere, and Rogers, Ark.-based digital marketer Rockfish Interactive.

“If you’re an entrepreneur and you’re building a consumer-facing brand and you have a choice between taking money from someone who understands your brand and someone who wants to just write you a check, I’d take money from a marketer,” said Phin Barnes, a principal at First Round Capital.

Clearly, agencies are looking for better long-term revenue models. Investing up front with a mix of cash and sweat equity is a good idea in my book. Great work is born from solid relationships, and there’s no better way to build relationships than to share in the heavy lifting.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.