The Digital Innovation Group (DIG), now the largest independent group of digital agencies in the UK, has secured a round of funding from independent investors to enable it to continue to develop its unique roll-up model. The group is currently made up of 16 member companies with another 12 companies scheduled to join the group in the coming year. The expected revenues of DIG by the end of 2016 are projected to reach £40m.
This is achievable through using a new earn-in equity model rather than the existing earn-out model used predominantly throughout the industry, creating significant value and co-ownership of the group for the agencies entering the model.
DIG is new breed of digital group that is bringing all digital specialisms into one group, providing clients a complete breadth of digital services whilst also delivering the depth of specialist knowledge. The group works across digital activity from multilingual search and social marketing through to design and development across all digital platforms.
DIG companies are best known for their innovations across emerging media developing seminal initiatives in big data, social trending, social marketing and multi-screen video for BBC, Virgin, Dominos and Orange amongst others.
The group is structured with an agile set-up mirroring the ever-changing digital landscape and offers value to clients as they do not have large overheads and inflexible structures of traditional full-service and integrated agencies.
The current member companies are:
– DIG DNA – a marketing and technology agency providing creative, marketing and technology services
– The Engine (Nordic eMarketing) – specialists in providing multilingual search, online PR and internet marketing services.
– eCreation – video infrastructure specialists
– Easel TV – connected TV and multi-screen specialists
– UVd – builders of mobile and web applications
– PickmeUp advertising – programmatic advertising
– Advant Technology – video and in-game advertising
– Sliced Bread Animation – an animation and 3D studio
– Pomegranate – digital user experience agency
– DIG Optimise – SEO, analytics & content analysis
– Knife Box Digital – digital marketing agency specialising in PPC, social, content and email marketing
– CapBrown – systems integration specialists
Rob Walk, Chief Executive of DIG, said: “We have been working and refining the DIG model for a number of years, giving smaller digital agencies the benefits and support structure of being part of a bigger agency environment while still providing them control and ownership. It is an attractive alternative to the WPP type earn-out model, providing significant value-uplift with ongoing involvement. This recent round of funding is to build-out the corporate governance and legal framework of the group as we move to our first major equity event.”