Bailey joins Dingo Bill as chairman, chief creative officer and partner alongside Oliver Warren, the founder and chief executive, and Jacob Madsen, the executive producer.
Bailey left the Dentsu Aegis Network agency in April – six months after being promoted to chief creative officer across EMEA.
Warren founded Dingo Bill in 2010 and intended it to be a new kind of production company, designed around the demands of the digital creative economy.
The production company has created work for Nike, Huawei, Sony and Starbucks and has offices in London and New York.
Bailey said: "This year I had a choice – to enter a third decade working inside a digital creative agency, or to take my 20 years’ experience from LBi, AKQA and Isobar and apply it in a new, dynamic environment full of the ambition and energy I recognise from the early days of digital. This is exactly what I’ve found at Dingo Bill.
"There has been an explosion in demand for compelling film content for digital in recent years. As a former agency leader, I know how important it is to engage with creatively driven, collaborative production partners to meet this demand flexibly, efficiently and to a high creative standard."