AREA 23: 2024

AREA 23, an IPG Health company

622 Third Avenue, 3rd Floor New York, NY 10017

917-265-2623 • [email protected] • area23hc.com

 

Quick facts

Accounts

• Account wins: 8
• Active business clients: 26
  

Brands by 2023 sales

• Brand-product accounts held: 57
• $25 million or less: 3
• $25 million-$50 million: 5
• $50 million-$100 million: 4
• $100 million-$500 million: 11
• $500 million-$1 billion: 9
• $1 billion or more: 13
• Products not yet approved/launched: 12

Services mix

• Healthcare professional assignments: 65%
• DTC/DTP assignments: 35%

Client roster

• Allergan Aesthetics
• Amgen (formerly Horizon
  business)
• Apellis
• Ascendis
• AstraZeneca
• Avadel Pharma
• Bayer
• Biogen
• Boehringer Ingelheim
• Daiichi Sankyo
• GlaxoSmithKline
• Insmed
• Ironwood (formerly Vectivbio business)
• Jazz Pharma
• Kate Farms
• Krystal Biotech
• Lilly
• Otsuka
• Pfizer
• Regeneron
• Sanofi
• Sarepta
• Sumitomo
• UCB
• Vertex

Winner

• Best Point-of-Care Campaign 
• Best Rare Disease Campaign
• Most Creative Agency
• Best Professional Print campaign
• Innovation Award

Finalist

• Agency of the Year, Category I
• Best Consumer Digital Campaign
• Best Consumer TV/Radio Campaign
• Best Use of Film/Video
• Best Influencer Marketing Campaign
• Best Patient Engagement Campaign
• Best Philanthropic Campaign
• Best Point-of-Care Campaign 
• Best Rare Disease Campaign

“Entering ’23 with a 23 in our name, could be seen as a sign. A sign that we better make 2023, the year of AREA 23,” says AREA 23 President Renée Mellas. “We’d like to think we lived up to it.”

In 2023, for the second year in a row, the agency swept “Agency of the Year” honors at Cannes Lions Health, MM+M Awards, London International Awards, Clio Health, and The Creative Floor Awards. Med Ad News also named Mellas and Tim Hawkey, chief creative officer, “Industry Persons of the Year,” with AREA 23 being crowned “Most Creative,” “Most Admired Agency” and “Agency of the Year.” “A quadruple threat and a first of its kind achievement at the Manny Awards,” managers say. 

According to Mellas, “after winning industry persons of the year in April, I told Tim, there are still eight months left in ’23; we better earn it every day for our clients and our people.”

Recent accomplishments

According to agency leaders, it was another robust year financially for AREA 23, as it grew 23 percent or the equivalent of a Tier 1 agency. However, this achievement was not without its challenges, Mellas says. “We entered 2023 with a significant task to accomplish given the volume of launches in 2022 and the post launch shrinkage that typically comes the year after. We also felt the impact of industry-wide client budget cuts in 2023. But we jumped into action and focused on both growing business with existing clients, and strategically focusing on some key larger new business opportunities.”    

Managers state one out of every three existing clients increased business with the agency over 2023, resulting in historic organic growth for the agency. Additionally AREA 23 garnered three significant new business wins, which included AOR assignments for Regeneron (HCP and DTC), Otsuka, and Lundbeck (HCP). 

Notable new business wins included brands from Avadel (HCP and DTC), Grifols, Jazz Pharmaceutical, UCB, DSI, Krystal Bio, and a novel diabetes treatment from Vertex. “This string of wins demonstrated our ability to adapt and capitalize on new opportunities, and further cemented our reputation as one of the most sought-after agency partners for pharmaceutical and biotech companies,” agency leaders say.

According to Mellas, “one of the main reasons so many clients choose AREA 23 is its vast experience launching brands, and 2023 added to that experience considerably.”

Last year’s notable new product launches included Apellis and the first treatment for geographic atrophy, Avadel for narcolepsy, and DSI for FLT3+ AML. 

Last year also marked the beginning of a transformative era in the advertising industry, spearheaded by the innovative use of artificial intelligence (AI). “As pioneers in this evolution, we saw the potential of AI to not only accelerate processes but also to enhance creativity, resulting in many groundbreaking projects,” executives say.

“Rather than waiting for AI tools to be handed to us, we took the initiative to craft and make them accessible to the general public,” Hawkey says.

Agency leaders point to bAIgrapher as one notable example. The world’s first large “listening” model for people with Alzheimer’s disease generating personalized biographies from the testimonies from loved ones, it uses a special tool to preserve patients’ memories. Developed months before the emergence of ChatGPT and GPT4, the AI behind bAIgrapher is different: trained in more than 400 biographies, it is uniquely equipped to write a compelling life story. It also proposes a unique way of looking at the dynamics between AI and humanity. According to Hawkey, “There has been a lot of talk about AI as this threat that will replace jobs and people, but bAIgrapher is unique because it shows AI not only not replacing people; it highlights how irreplaceable we all are.”

The agency also created The Outside In Experiment for Horizon Therapeutics, the inaugural Cannes-winning AI-generated awareness campaign for people with gout. To accomplish the technical feat of producing the five original films in just six weeks, AREA 23 developed what executives say is a unique production workflow and became an in-house team of prompt engineers, machine learning experts, creative technologists, artists, and mathematicians. Each film received an original score and immersive 3D soundtrack designed
second-by-second with Dolby Atmos technology. “For decades, we’ve employed creativity to drive innovations that benefit people – now we’re leveraging the latest AI technology to achieve previously unimaginable feats even faster and smarter than ever,” Hawkey says.

And when it came to industry honors, executives say “’23 really was the year for AREA 23,” with 23 different ideas bringing home more than 300 awards. These include two Grand Clios, a Best in Show, and Executive Creative Director Jason Graff being ranked No. 1 ECD in the World for Pharma at the One Show. At the Clio Health Awards, the agency’s Urovant, DSI, Lilly, and BI clients were personally recognized for their innovations and contributions to creativity.

To cap the night, Horizon Therapeutics won Advertiser of the Year for the Outside In Experiment and Eyedar, the first app to teach the blind to visualize their world with sound. 

  The year culminated with the Drum Awards, ranking AREA 23 the No. 1 agency in the world. “This was a huge milestone for us because the competition wasn’t other healthcare agencies,” Hawkey says. “This was beating out every agency in the world, including those representing brands like Burger King, Nike, and Apple. So, this wasn’t just a win for us, it was a win for the whole pharma industry.”

Structure and services

According to agency leaders, “in addition to leveraging AI to fuel and amplify its creative output, AREA 23 has also directed its AI capabilities towards boosting production efficiency and overall quality. This year marks a significant shift, as we begin to experience the full impact of AI’s capabilities, moving from treating AI as a novel tool to making it a fundamental aspect of our operational and development methodologies.” 

Executives maintain that AREA 23’s journey with AI began with the vision of streamlining agency processes. “The aim was to automate the mundane, freeing up creative minds to focus on what they do best – innovate and experiment with groundbreaking ideas, and that change has been unmistakable,” agency leaders say. “We have harnessed the power of AI through the adoption of innovative marketing tools, plugins, and programs such as Runway ML, Photoshop Generative Fill, Stable Diffusion, and Dalle 3, to enhance efficiency across various mediums including linear TV, OLV, print, and digital ecosystems. These tools not only quicken the ideation process but also ensure quality is not compromised.”

According to managers, the agency’s technology and experience design departments have benefited the most from AI tools, leveraging tools such as Optimal Workshop to help conduct user research, card sorting, and tree testing, Figma, Adobe XD, and DeepCode for layout and development phases, and GitHub Copilot and Applitool for essential QA tasks.

“Our use of proprietary large language models (LLMs) has been particularly revolutionary, enabling us to delve into complex data sets and extract valuable, often elusive insights,” executives say. “We are going all in on the application of LLMs for groundbreaking new chatbot and virtual assistants that will prove the healthcare experience for HCPs and patients alike.”

“AI is here to stay,” says Franklin Williams, executive experience design director at AREA 23. “Teams that effectively use it to shorten the time it takes to go from nothing to something will consistently come out on top.”

Along with the AI additions last year, there has also been significant growth within the agency’s Experience Design department. “XD has witnessed a remarkable 62 percent increase in staffing over the past year, which is a testament to the burgeoning demand for digital-led work and our commitment to meeting and exceeding this demand,” executives say. 

There have also been significant changes on the staffing front as well. “We have always believed in recognizing and nurturing talent from within,” agency leaders say. “This philosophy of internal promotion has been a key element of our success. Last year, we continued this tradition with significant leadership expansions.”

Mellas emphasizes the importance of this approach, stating, “We’ve doubled the account EVPs from four to eight because we know we’re a special breed and we like to promote from within for people who’ve earned it and earned the respect of their colleagues and their clients.”

This expansion saw the promotions of Lacey Henry, Lauren Livingston, Jess Richards, and Courtney Thompson to the roles of group management directors in account management. Additionally, in the creative department, Dave Adler was elevated to the role of executive creative director and Franklin Williams was made executive experience design director. The strategic planning department also saw substantial growth in leadership. James Coghlan, Shelby Rauen, and Noor Tourte were appointed group directors and Tyler Dickson and Jeremy Vallimont were promoted to executive directors.

“These promotions are more than a nod to individual excellence,” Hawkey says. “They represent a strategic move to secure the ongoing success and growth of AREA 23. Our newly appointed leaders bring a wealth of experience and fresh perspectives and are uniquely positioned to cultivate rich, innovative connections with clients, aiding in their success and, consequently, in the continued success of AREA 23. This expansion also reflects our commitment to fostering a culture of recognition and advancement, ensuring that we continue to lead and innovate in the ever-evolving world of advertising.”

For most organizations, the content supply chain – the process of producing and delivering content that fuels effective customer experiences – is a web of disconnected workflows, teams, and systems. At the same time, content demands are multiplying.

“Last year, IPG Health invested significantly in further building out its content supply chain offering, and the benefits for our agency and clients have been momentous for creating customizable and efficient communications,” executives say. “IPG Health has integrated applications, harmonized ways of working, connected global production centers, and harnessed AI to create a content supply chain purpose-built for healthcare marketing.”

IPG Health welcomed Jessica Specker, executive director of global content to the network in late 2023, and in her role, “she’s bringing together the necessary solutions to effectively plan, create and deliver content quickly and efficiently, collaborating with teams across the network on all aspects of the content lifecycle for even more seamless content solutions for our clients,” executives say.

When it comes to its return to office approach, managers say AREA 23 continues to lean into IPG Health’s philosophy of flexibility, accountability, and trust. “Unlike other agencies and networks, we trust our employees to work with their teams to figure out what works best for them, their families, and their clients.”

Future plans

We had to make ’23 the year for AREA 23, but now it is time to set the pace for ‘24, both for the agency and industry,” Mellas says. “AREA 23 will continue to accelerate its ability to bring breakthrough ideas into the world. Powering six new product launches and eight new indications that will significantly disrupt how the world thinks about treating the most insidious diseases, while leveraging innovative technologies that get us to better and faster. All to deliver unparalleled client partnerships that bring unprecedented success for our brands. AREA 23 has become a trendsetter of sort in the industry, and we have several irons in the fire, the likes of which no one has ever seen. These 2024 projects will change how healthcare marketing is done come 2025.”

Philanthropy/citizenship

Delivering culturally relevant and competent creative solutions remains the driving force of our philanthropic efforts and our achievements regarding equity, diversity, and inclusion,” agency leaders say.

In 2023, AREA 23 partnered with Black Women for Wellness to help tackle an evidence-based inequity. Black mothers in the U.S. are three times more likely to die from pregnancy-related complications (65 percent of which are preventable) than white mothers. This health inequity is not attributed to chance but rather to deeply established institutional racism in healthcare systems, executives note. 

“In response, we created EVERYTHING THEY DIDN’T TELL YOU, a book jacket for What to Expect When You’re Expecting, the No. 1 best-selling pregnancy book in the U.S.,” executives say. “In doing so, we transformed the book into an essential health guide for Black moms-to-be. The book jacket presents life-saving information Black women need to help prepare for pregnancy, childbirth, and postpartum. With this essential health guide, more Black women can have the information in their hands to advocate for a safe and healthy pregnancy so they can, most importantly, stay alive.”

Another game-changing charitable project in 2023 was UNSEEN HOUSEWIVES, which the agency developed on behalf of Unchained At Last, a survivor-led nonprofit organization dedicated to ending forced child marriage in the U.S. Child marriage is a human rights violation, yet it remains widespread around the world and is currently legal in 43 states in America. 

“UNSEEN HOUSEWIVES is a fake reality show based on the real stories of child-
marriage survivors in the U.S.,” executives say. “Child actors recreate the true experiences of survivors, set against the familiar tropes of reality TV. It was made in partnership with four actual survivors, who were on set coaching the young actors to portray their stories.”

UNSEEN HOUSEWIVES premiered on March 10, 2023 at the United Nations Commission on the Status of Women and was supported on social channels by notable influencers. “The work is not just raising awareness and steering donations to end child marriage across states, it is creating results. We helped change the laws in Vermont, Connecticut, and Michigan,” Hawkey says. “Just 40 more states to go.”

Continuing in its stated commitments to equity, diversity, and inclusion (EDI), AREA 23 extended several ongoing initiatives and are investing in new ones. “We doubled down our mentorship support to the One School and the D&AD Shift programs, both currently serving as portfolio schools and industry entry points for BIPOC creatives,” executives say. “And our well-known employee resource group, WE, was stronger than ever in 2023, with 60-plus employees representing a broad spectrum of diversity and four cross-disciplined directors providing leadership as co-chairs brought about a series of impactful employee-led initiatives.” These include Culture Consultations via which the group advocates for appropriate representation for culture-based assignments and helps evaluate whether intent of the agency’s creative work and its potential cultural impact connect in a positive way.

“Our main approach to EDI is empowerment,” says Fritz Loriston, a co-chair of the WE group. “We empower the brilliant people working with us. The result is meaningful work that is pushing forward the very world around us.”