Fernando Figueiredo says that the current model has already been worn out
Bullet went through difficult times during the pandemic. Fernando Figueiredo, the agency’s CEO and partner, says that the pandemic has messed with everyone’s minds and created new references. People understood that with less they could do more. For him, the current agency model has already been worn out.
According to the executive, 2023 will be a year that starts warm and well defined. We know who the rulers will be and the plan of government. A year in which the advertiser needs to make the wheel turn, leaving the crisis behind. A year focused on results. Any marketing strategy will have to bring quick returns.
See below the main excerpts of this interview.
Bullet positions itself as one of the most creative agencies in a market that has many of them that are also very creative. What is the reason for this statement?
Subjective creativity. Bullet is based on the past, present and what it is willing to do in the future. Our creativity and innovation have always gone hand in hand and Bullet has always been at the forefront of this movement. Promotions and historic events, various awards, including the first Cannes Lion for Promo in the country’s history, and elected in the last five editions of Agency Scope as the best agency indicated by clients and the market. I’m 30 years old. And we count on the fingers, on one hand, who is alive and pulsating after three decades. But we understand that good creativity is the one that sells. The one that brings results. And that we have shown ourselves to be good at what we do.
Bullet underwent restructuring. What is the need for the changes?
Much less a matter of necessity and more a matter of common sense. The pandemic messed with everyone’s minds and created new references. People understood that with less they could do more. A lot more. Less time fighting over room size, the title on the business card, and focus on productivity. However, this reset effect appeared in my life much earlier, more precisely in 2017, when I moved to the United States. I always loved what I did. I’ve always loved working. But Brazil was addicted to a heavy, analogical and very unsustainable model. Predatory competition, lack of ethics in the market, and very low productivity. Six months to put a foot campaign. Discussions with purchases that everyone loses and high operating costs. No wonder the market was said to be sold out. But what made me impatient was seeing that the market was the agencies and they did absolutely nothing to change this reality. And when I saw that there is life on the other side of the hemisphere, I realized that it was possible.
And what did you do?
The culture of trust makes the nation simpler, more ethical, more focused. I tried to change the model, but, due to internal and external resistance, it was not possible to apply the same formula, since here, agency and client, were accommodated in an addicted model and the agency had 170 talents to move the machine, which prevented us from to choose which projects to work on. The risk was inevitable, and it had to be said, yes, for everything. In Brazil, we agencies have always insisted on measuring success by the size of the team. A stupid addiction, an ego trip that makes the dog increasingly chase its tail. Nizan (Guanaes) one day released a sentence that ringed our bells: Companies today need to be light. Who has cost, is afraid. Only lightness will give you the freedom to say no to the customer who doesn’t want to pay you. Even though you are doing a great job.
In this context, what is the ideal model?
A model like the American one had no room for ego, wasted talent or old practices. But how to change the tire with the car walking? The conclusion was: just stopping the car. Behold, the pandemic takes the world head on. The world stopped. Sad moment, but propitious and unique to reset the machine and change the tire. Imagine it like this: the Safety Car enters the track when the car is at the entrance to the pits. enter now or wait for the race to restart on the same tyre.
The market faced difficult times with the pandemic. How did the agency get through the period? Was there a drop in revenue?
I think the worst moment of the pandemic was the first week. Bullet was primarily a live marketing agency. And 40% of our business was events. In the United States, 80%. Within a week, nine of the 12 events in the pipeline were cancelled. The following week, the remaining three. But Bullet wasn’t just that. It was strategic planning, promotions, digital and influencer. And after everyone was frozen by the scare, the market began to react, and I would say that months later the 60% of the businesses not affected, which were fundamental to activate the economy, were highly demanded and compensated for part of the lost revenue. However, as the pandemic hit Bullet first in the United States, between January and February 2020, it didn’t take us long to implement the changes we tested two years ago. We didn’t cross our arms for a single minute and in March 2020 we started the biggest revolution that Bullet has ever experienced.
What work system did you adopt after the worst of the pandemic?
I was already living the hybrid model since I was in the United States. But I felt like the ugly duckling, because I was the only one per video. In the pandemic, we adopted the home office, however, with discipline and technology, we created a perfect virtual environment. Occasional and daily meetings to maintain the pace of work and the agency’s culture. And we quickly understood that the super thirsty, luxurious, beautiful model to post on Instagram no longer made sense. And we went in search of Bullet’s future, once this nightmare was over. And we knew we would never be the same again. And the future that awaited us was the ultimate hybrid. Each one would decide how they would work in person. When or if you want. We only had to win: productivity, less travel time and talent located in all corners of the world (Sao Paulo, interior, Recife, Spain, Miami and New York). And it worked. The presence is a fact. And everyday life is light and flexible. And, instead of being isolated on the 15th floor of Berrini (an avenue in São Paulo), we sought a collaborative environment. And we join innovative companies in taking Bullet to the State. Vizinha Arca, a factory for startups and innovative companies such as Braskem (Cazoolo), Soko, TokStok and Carrefour, among others.
Is Bullet inspired by the North American work model? why?
While the market adapted its costs with reductions in working hours and wages, we immediately started with the model we already wanted to adopt. The American model was applied in practice. An agency of entrepreneurs that proposed to remunerate all talents for the performance of revenue (not result). No Boundaries. No conditions. No bureaucracies. A proprietary and complex mathematical model. Everyone became part of the business. With that, it was inevitable to attract entrepreneurial people to the table. And so the team was naturally being structured. Bullet today has talented people who share the cake, the anxieties, the happiness, the achievements. And even other talents plugged into projects that want to work in the same way. Willingly, with a focus on results, without wasting resources and time.
You criticize the Brazilian work model. why?
The current model has already shown itself to be worn out. And today it doesn’t make sense anymore. As I said, the traditional model makes the agency chasing its tail. Fees are built based on number of people and not on idea or productivity. Thus, the more you charge, the more you hire and vice versa. It scares me today to see companies illustrating their success with the number of professionals they have, when success should be seen in the jobs created, results generated and, of course, bottom line profit. In this model, clients pay more and agencies earn less, when it should be exactly the opposite. Furthermore, relationships were based on quantity and not empathy. Advertisers often made several agencies (and people) work for free in the belief that a lot of ideas would result in a great idea, when seeking an empathetic partner has always proven to be more successful. I say based on it because I feel things are changing around here.
Taking stock of the last few years, how many new clients did Bullet conquer and which ones?
In the past, it was known that 40% of the agency’s resources were wasted with tenders and canceled specific projects. With this new model applied, and with the whole team deciding together the path to follow, we drastically reduce risky projects and focus on recurring clients, who want a strategic partner, who paddle together in this rough sea. Everyone gained from this: less unproductive costs passed on to clients, a more focused team and a lighter and more profitable agency. That means not wasting resources on risky projects, and only working with clients we believe in. More than that: we want to work with those who want to work with us. This is ESG in essence. To compete with seven agencies, no. Therefore, we reduced the volume of bids by almost 80%. And we attract clients that we are delighted to work with.
What is the company’s revenue and what is the expectation for this year?
By September, Bullet had already grown in revenue by 116% compared to 2021, 166% compared to 2020 and 42% compared to pre-pandemic levels in 2019. Fee based represents 70% of the business against 30% previously. All this, added to a much more optimized structure, which is reflected in a historical result. Regarding new revenues, proprietary products already represent 19% of the total.
