27 November 2009
	AdMakers Sail of the century By Sasha Planting A recession is no time to stop marketing to the über-wealthy

AdMakers focuses almost exclusively on the marketing of high-ticket items. The agency markets private jets, luxury yachts, motor vehicles and exclusive property for local and international clients. Its clients are large corporations and wealthy individuals. Its target market is usually of more mature years and living all around the world. True luxury in their eyes, says AdMakers CEO JP Fourie, starts at R250 000 and tops out in the R500m-R1bn range. Take one of AdMakers' recent account gains: luxury yachts from Germany-based entrepreneur, Heiner Tamsen, Tamsen yachts Prices start at à 17,8m (about R200m). When Julia Tamsen, who is responsible for the interior design and layout of Tamsen yachts, saw AdMakers' portfolio, she knew she had found the right strategic partner. "I did not have to explain myself or my target market," she says. "The understanding was immediate." AdMakers founder and chairman Duan Coetzee says: "What sets us apart is the ability to know what a client wants without having to take an extensive conventional agency briefing. You develop this after decades of playing in the same market." Even in recession, Fourie says there will always be people able to afford a yacht, jet or luxury property. Indeed, the recession has boosted AdMakers' image. "We are a results-driven agency," says Fourie. "These days people are concerned with delivery and tangible results." Nearly 20 years ago, AdMakers pioneered a model for sharing financial accountability with its clients. The agency has enough faith in its own work to share the financial risk with selected clients. "In some cases we work for free, in others simply for our costs," Fourie says. "In these cases we are usually earning a share of the profits." This means a higher degree of risk. "There are often factors over which the agency does not have full control and they can make or break a venture. For this to really work our client must see us as equal project partners. We become involved in our client's business and strategy. Not every client can handle that." How was the idea of starting an ad agency focused on luxury goods started? Back in 1987/1988 when Coetzee was in the army, he composed a radio jingle for audio and video specialist Audio Vision. During a weekend pass, he camped outside the CEO's door (in his uniform) until he agreed to see Coetzee. When the CEO heard the jingle, he offered to buy it for R1 500 - "10 times my monthly army pay". This ability to convert ideas to action has been a feature of Coetzee's working career. He put himself through university selling expensive pianos and organs. Then he co-founded Berco Same Day Express with Bernie Cox (later selling his 50% share). In 1996 he saw a gap in billboards and set up Reliance Sites with Gavin Stigling. Corpcom bought the business in 1998. In 1999 Coetzee founded XSINet, which went on to become a successful Internet service provider. This business was also sold. He also became involved in inner-city renewal. "Selling high-end products requires a certain skills-set," says Coetzee. "We could not be - and do not want to be - all things to all people. Perhaps other agencies are more talented than us in that they manage to work on such a wide variety of clients and products, but we simply cannot." Today he won't work on projects he does not like or believe in and he won't work with people he does not like. "Otherwise what is the point of working?" The focus is so concentrated that in some circles AdMakers has a reputation for being aloof or arrogant. Fourie says: "I regret this view but we have to turn away some clients if we believe we cannot make a difference to their bottom line or if there are simply too many outside factors we cannot control. In some cases you realise the relationship between agency and client will not work because of the personalities around the table. Some read it as arrogance if we do not want to take on a project. I think it is honesty." The agency's relentless focus on the luxury market is paying dividends. "Our opinion and advice are free," says Coetzee, "and many clients consult with us from around the globe without becoming AdMakers' clients." Recent examples include The Pearl Dubai, a Dubai-based project that was also hit by the economic downturn. This mixed-use project comprises homes, hotels and entertainment facilities. Another is a Greg Norman-designed golf estate in Croatia, which has since become an AdMakers client. It will feature homes and apartments designed by Porsche and Armani, and also by Cape-based Stefan Antoni Architects, who were introduced to the project by AdMakers. Some boutique hotels, a reconstruction of an imperial fortress and three smaller fortresses, retail, spas and equestrian facilities form part of the picture. Fourie says AdMakers is working in Dubai, Croatia, Russia, Egypt, France, England and some exotic island destinations and is looking into prospects in India, which is reportedly home to the fastest-growing population of high net worth individuals in the world. "The US market has come to a standstill and we will wait for signs of a recovery before going after that again." Though property has always been an important part of the agency's portfolio over the past 20 years, much of the company's international work has involved luxury brands like Learjets, Porsche, Ferrari, Maserati and Rolls-Royce. Last month the agency was summoned to Moscow to consult on Gulfstream jets. A Gulfstream starts at about US$15m and can top out at about $100m, depending on specifications.