Deutsch Ad Agency Plans an Office in Southland

The third New York advertising agency within a week has revealed its intention to open an office in Southern California.

This time, however, the agency, Deutsch Inc., said its office will not just be set up to service current clients, but also to get into the scramble for new business.

Deutsch is regarded by many as one of the hottest creative shops in New York. It may be best known for its hip commercials for the new magazine Entertainment Weekly that advise people to “Kick back. Chill out. Hang loose. Have fun.”

Deutsch says it will likely open its Southland office in Santa Monica. Last week, the agencies Lowe Marschalk and Young & Rubicam both said they planned to open small Southland offices to service current clients.

“I want to take the New York smarts and bring it to Los Angeles,” said Donald Deutsch, executive vice president and creative director of the agency, who said the office will open in about six months.

Among the West Coast accounts Deutsch is after is Ikea, the large Swedish furniture marketer, which Deutsch already creates ads for on the East Coast. Ikea is expected to open at two Southland locations within the next year.

Deutsch said his West Coast office will initially employ 12 people.

“I’m a little frightened,” said Deutsch. “But the crazy part is, everyone from this office wants to be the one to go to Los Angeles.”

Some executives regard Los Angeles as the most difficult new market to enter in the country. Several West Coast advertising executives were skeptical about Deutsch finding much success in California.

“Los Angeles is a lot tougher to grow in than New York,” said Philip Joanou, chairman of Dailey & Associates, which creates ads for the California Lottery. “In New York, you have the opportunity to pitch a good-sized client two or three times a month. In Los Angeles, it’s once or twice a year, if you’re lucky.”

Often, New York agencies want to keep their best people in New York so they don’t send the best talent to Los Angeles, Joanou said. Those West Coast offices sometimes fail.

“You get business in the Los Angeles market more through talent than through time,” said Nancy Shalek, president of the Shalek Agency. “You get business here by being on the inside.”