LA-based branding and marketing agency Phenomenon has acquired Marketing Supply Co. (MSC), a performance agency based in Detroit.
The two firms are coming together as marketers look for more integrated work from their agencies in response to consumer behavior changes during the pandemic.
“We were leaving so many dollars and opportunities on the table because we were handing off that work to other agencies or to [brand’s] internal teams. So we started thinking about how to bridge that gap,” said Phenomenon CEO Krish Menon.
Phenomenon has worked with clients including Pepsi, Disney, and American Express, while MSC works with brands such as Capital One, Pet Supplies and Ebates.
The tie-up will allow Phenomenon’s branding experts to “provide that strategic level work at the top, but continue to do the tactical and performance marketing at the bottom,” Menon said.
Shane Bliemaster, founder of MSC agreed: “As we continue to move up market, we need more of the capabilities that the Phenomenon team in LA is bringing to the table. That's how we're going to continue to grow.”
The combined agency hasn’t yet pitched together, but the teams have worked together in the past on integrated accounts. The new combined agency is in the process of consolidating back office functions and project management systems “so that they all start flushing together,” Menon said.
“Structurally, there's no competition between what the two firms are doing,” he added. “There's not a single crossover position in either front.”
MSC will change its name to Phenomenon Detroit to create a sense of unity and seamlessness at the organization, Menon said.
The Detroit office will become Phenomenon’s third U.S. location, in addition to LA and Chicago. Shane Bliemaster will become Managing Director of Phenomenon Detroit.
Over the next several years, Phenomenon Detroit intends to triple in size, Bliemaster said.
“No company can stop at purpose. It can't be just a campaign idea,” Menon added. “[Campaign ideas] need to tactically be used by the people that are running the business that are being measured by profit margins or sales in order to execute on an ongoing basis.”
The combined agency will have 65 employees. Menon declined to comment on combined revenue.
(Correction: An earlier version of this article stated the combined agency will have 62 employees).