Droga 5: Huge Client Losses, Major Problems and Closing Offices

2015-09-09 by EPR Staff

droga 5 firm

Partner Claims Droga5 Name Is A Blessing & A Curse

David Droga is the Creative Chairman of Droga 5 in New York City since he founded it in 2006. He has come a long way since being the Executive Creative Director of Saatchi & Saatchi Singapore in 1996. The company has grown to be one of the largest international advertising companies, with clients including Under Armour, Motorola, Coca-Cola and Heinekin. In 2013, William Morris Endeavor bought a portion of the company.

And while the agency has seen many awards – including winning agency of the year at this year’s Cannes Lions. But, recently the brand seems to be suffering tremendous losses internationally.

Media reports indicate that Droga5 Australia has dropped from 130 employees to 35 – that’s a major hit for any company to stomach. In recent months, creative chairman David Nobay has left as has high-profile executive creative director Steve Coll.  Clients firing the agency include Qantas & Toyota as well as others.

Droga5 Agency Office

In an interview with a leading Australian blog, Sudeep Gohil, the Sydney based CEO of Droga 5, said Droga has been both a blessing and a curse.  The blog said the agency is in a “tough situation”, and has “…under-delivered on what the reputation of New York is.”

Droga5 has grown quickly – let’s hope they recover in Australia.  The good news – for them at least – is they don’t have a presence in Greece.

Update As we predicted, Droga 5, is to cease operations in Australia this year. According to a Press Release by David Droga: 

This was obviously a very difficult decision, both professionally and personally, and as a proud Australian, it was a bitter pill to swallow. However, we see little value in continuing to operate in this market with an office that, sadly, no longer consistently represents the Droga5 brand.

Despite world-class local management and many talented individuals working hard, the Sydney office has floundered over the past few years. Some of it was self-inflicted, some of it bad luck and some of it just the befuddling local advertising market. Regardless, we aren’t a company that measures its success by the number of its offices, but rather by the creative output, positive influence and culture of each office.

Everything Public Relations News Insights Author Richard D. Pace