How indie agency NP Digital takes on major holding companies

Since its launch in Asia Pacific in 2021, NP Digital has steadily expanded across Southeast Asia and the broader APAC region through strategic acquisitions. By bringing Ubersuggest, AnswerThePublic, and SearchGuru into its fold, the agency has sought to build a comprehensive set of tools to help clients navigate the challenges of digital marketing in the region.

The APAC market is vast and diverse, with varying levels of digital maturity across countries, making this expansion both ambitious and necessary.

Leading NP Digital’s operations in Asia is Dan Kalinski, the agency’s APAC managing director, who is based in Australia. In the region, NP Digital has made several strategic appointments, including former Twitter/X senior executive Manuel Denoual as managing director of Singapore, Melissa Cheng as country manager of Malaysia, and Prady Kumaar as chief executive of India.

Despite its relative youth in the region, NP Digital has already garnered significant industry recognition, ranking as high as seventh in Campaign Red’s global indie agency rankings. The agency has also received accolades like Campaign’s Agency of the Year Global Awards 2024 in the Performance Agency and Independent Performance Marketing Agency categories.

In part two of our conversation with co-founder Neil Patel, conducted during HubSpot’s Inbound 2024 event in Boston, Patel sheds light on how NP Digital is taking on the holding companies, addressing clients' needs in Asia Pacific, and planning future acquisitions.

Taking on the big boys

The ongoing challenges faced by major holding companies have opened up space for independent agencies to thrive. Companies like WPP, Dentsu, and others have struggled with declining revenues, restructuring, and economic uncertainty. For example, WPP recently revised its 2024 growth forecast, reducing it to between -1% and 0%, following a 0.5% revenue drop in Q2. The company’s performance in China, where revenues fell by 24.2%, was particularly concerning, despite growth in North American and Indian markets.

Dentsu, like WPP, has also experienced a revenue decline in H1, dropping by 1.8%. Despite this, some agencies have shown resilience—Publicis, for instance, led with 5.4% growth in the same period, followed by Omnicom and IPG. The struggles of the larger players, particularly in their creative services, have raised questions about their ability to remain agile in a rapidly evolving industry. Yet independent agencies like NP Digital, which operate outside the constraints of quarterly earnings reports and profit margins, are finding opportunities to capitalise on the gaps left by these larger firms. Is there a link?

“We typically win most of our clients from large holding companies,” says Patel. “The main reason is that those firms are often managed by accountants who focus heavily on quarterly earnings and financials.” By contrast, Patel says firms like NP Digital can prioritise long-term relationships and client satisfaction over short-term financial performance, allowing the agency to adapt to its clients' needs with greater flexibility.

While this independence offers certain advantages, Patel is quick to point out that it also presents challenges. One significant hurdle is talent acquisition, particularly in Southeast Asia. “Recruiting remains a competitive challenge, as many skilled candidates are already committed,” says Patel.

This challenge comes against the backdrop of a potential global recession. JP Morgan recently updated its forecast, estimating a 35% chance of a downturn by the end of 2024, driven by weaker-than-expected labour market performance and a general deceleration in economic growth. In such uncertain times, agencies like NP Digital must carefully balance their long-term strategies with the realities of short-term economic pressures. Patel acknowledges this but remains committed to prioritising client relationships over profits: “We must go above and beyond for our clients, ensuring their satisfaction, even if short-term profits are lower. But we can prioritise long-term relationships without quarterly reports to public markets or investors.”

As discussed in our first conversation, the core of NP Digital’s strategy is its focus on SEO and performance marketing. In periods of economic slowdown, where budgets are often slashed, Patel feels SEO provides a cost-effective way for brands to maintain visibility and connect with their target audiences. Patel explains that SEO plays a crucial role at every stage of the marketing funnel: “SEO can drive conversions at every stage of the marketing funnel. At the top of the funnel, it helps familiarise potential customers with your brand. In the middle of the funnel, you can collect email addresses and integrate individuals into your ecosystem. At the bottom of the funnel, SEO can directly generate sales.”

This approach has proven particularly effective during periods of economic uncertainty. Patel points to United Airlines as an example. During the pandemic, when air travel demand plummeted, United increased its branding efforts rather than cutting back. The airline’s largest ad campaign in a decade helped it continue making progress despite the downturn, with analysis showing that this strategy contributed to an increase in passenger numbers and miles flown over the past two years.

The data privacy imperative

Another key issue for the industry is data privacy and the evolving landscape around data collection. Google recently abandoned its plans to remove cookies from its Chrome browser, after a four-year effort to phase them out. This decision has created further uncertainty for marketers, who are now tasked with navigating a complex regulatory environment while ensuring they make the best use of the data they have. Patel advises marketers to tread carefully when it comes to handling data: “It is essential to make the best use of what you have. Ideally, you should develop your own Customer Data Platform (CDP). Collecting data directly from your customers and building your repository will make you better positioned for long-term success.”

Patel also emphasises the importance of working closely with data and analytics teams, particularly when it comes to programmatic digital out-of-home campaigns. “You also need to collaborate closely with your data and analytics teams for programmatic digital out-of-home campaigns as it is important to not only examine the data sources but also trace back to where the buyers are coming from and analyse the actual numbers in your databases, bank accounts, and CRM systems. Double and triple-checking is essential to ensure the data is high quality,” he says.

Looking ahead

Looking to the future, NP Digital’s expansion plans focus on further acquisitions across Southeast Asia, as the agency seeks to broaden its service offerings and increase its regional footprint. However, Patel also sees significant potential in emerging trends like live selling, particularly in Asia, where social-media platforms are driving direct sales in ways that have yet to fully take hold in Western markets. “In Asia, sellers are unafraid to engage in live selling, and they do so frequently to forge deeper connections with their customers. They excel at storytelling during these live sessions, moving beyond mere sales pitches to create meaningful narratives that resonate with viewers,” explains Patel.

As NP Digital continues to grow and adapt, Patel remains focused on ensuring that the agency maintains its edge in performance marketing while exploring new opportunities in areas like live selling and data-driven marketing. Reflecting on the future, Patel says, “We aim to stay ahead by continually refining our strategies and keeping our clients at the forefront of innovation. As the market evolves, so will we—always with the goal of exceeding expectations.”