Advertising Agencies and The Gig Economy

For most of us, not a week goes by when we do not talk with someone or hire someone who is engaged in the “gig economy.” It could be a freelancer at our shop, an airbnb host/hostess, an Uber/Lyft driver or an itinerant handyman. Estimates are that some one third of the workforce will soon be freelancers of some sort  and demographers have projected that it could top 50% in 15 years. Sara Horowitz, Executive Director of the Freelancers Union has stated that “Freelancing is the new normal.” It has other names, too. The 1099 economy, the micro-gig, the Uber economy and independent contractor also pop up a great deal as well when describing this growing trend.

Several years ago, I put up a post entitled “The Zombies Among Us” (see MR 6/30/10). I received a rash of angry mail from ad agency principals saying that they had full bodied teams and rarely, if ever, use freelancers. Today, I would say that it is highly unlikely that I see such angry e-mails. The advertising world has been changing rapidly along with the rest of the economy.


It is close to impossible to quantify the extent of the gig economy in the advertising agency world. Directionally, it seems to be much stronger than in other businesses. Freelancing was always popular with creatives who did a lot of moonlighting while holding down a 9-5 position at a reputable shop. In speaking and emailing with a dozen or so current players, it seems to be a dominant feature across the board in shops of all sizes.  Here are some verbatim comments (carefully edited) of some current freelancers:

—“I love being a freelancer. No more politics, no more meetings. At first, it was scary, as I had a few gigs set up and my income soared for about seven weeks. Then I faced two months of silence. I tried to network like crazy but nothing happened. I became an Uber driver!  Now, my work is more steady but I drive when things get quiet. I am not proud. I love being my own boss. The key is to stay in touch with contacts and give very good service when you get a gig. Also, you need to learn how to manage your money. One month a feast,  but the next could easily and often is a famine.”

—“I will never work at an agency again. Along with some friends, I got whacked near the end of the Great Recession. So, I had no choice. I was 47 with a kid about to enter college. The first year was nerve-racking but my husband kept his job and now I make more than I would have had I survived the purge(s) at my old shop. The independence is great.”

—A young millennial—“I only worked three years at a shop before I escaped to the 1099 world. Not only will I never work at an agency, I hope never to work at a company again. All my friends at agencies are miserable. They work long hours, the pay is low and the clients are all bastards. When people tell me that I have no security, I laugh. Since when was working at an agency, secure? The highs are higher now and the lows are bad but temporary. My level of contacts is big. I did work for nine agencies last year and 12 companies. This is not what I expected but I am happy.”

—A young graphic designer—“My work now is with companies and non-profits. Agencies keep trying to Nickel and Dime me. They ask several of us to do a “jump ball” and bid for a job. It appears that the job is often assigned to the low ball bidder (yes, we talk to one another!) The companies are hiring smart young pros who know digital better than all but a few mega-shops. They know what they want, do not spin my wheels, and appreciate my work. Pay quickly, too.”

—“I retired (really) a few years ago. A friend asked me to help on two new business pitches and I loved being back in the game if only for a few days at a time. Now, I do it several times per year. My digital expertise is very limited so I know I will have to quit soon but I am loving it.”

—“Five years ago, I was fired from an agency and went through a bad divorce. I was offered a job at a shop back East but knew, if I took it, I would rarely see my kids again. So, I went freelance. The first year was brutal. Between assignments, I was morose and ate and drank too much. Now, I am the “go to” person for several companies. Also, I go to the gym daily and never miss any activity for my kids. My ex told me that if I were the person years ago, that I am now, we would never have separated. Being a freelancer has made me grow up. Getting fired was the best thing that has happened to me in years!”

—“Two agencies that gave me a few gigs offered me a full time job. Not going to happen.”

—Mid-sized shop owner—“I have tried but morale sucks at my shop. The only time people are happy is when I do free drinks Friday night at a local watering hole. Our free lancers are a breath of fresh air. They have high energy, are fearless, and have little baggage when they come in to see me. Some of our internal creatives resent them. They do not understand that they are helping them.”

Media and research freelancers have been active for years. They are far more out in the open than most creative players as the soul of ad agencies tends to still revolve around the creative product.

So, the Gig or Uber economy sounds too good to be true. Well, it has its detractors. The most articulate is Steven Hill who wrote RAW DEAL (St. Martin’s Press, 2015). In this somewhat angry book, he spends an entire chapter questioning the ethics of  airbnb and then, in the next, goes after Uber. Some of his criticism is justified. There have been cases where apartment houses in San Francisco and a few other places have displaced tenants and turned their buildings into airbnb’s. My experience with airbnb’s has been mixed with quality of the accommodations but we have talked to people who can now afford to stay in their homes despite high real estate taxes, remodel them, or take care of their children in great neighborhoods with only one parent present. Uber has been a stop gap for many as the art director above who is a driver between advertising assignments. Hill calls freelancing the “share the crumbs economy” and says companies like it as they do not have to pay benefits to employees. That is certainly true but he downplays how it is working for so many people who are not classic entrepreneurs.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com