(3) Animax Entertainment

0

Animax Entertainment

Van Nuys

Business: Creative advertising agency focusing on multiple online media platforms

Founded: 2001

Two-Year Growth Rate: 584%

2008 Revenue: $7.4 million

When CKE Restaurants, owner of the Hardee’s and Carl’s Jr. fast-food chains, needed a viral marketing campaign to compete with rival Burger King, it turned to Animax Entertainment.

The Van Nuys creative advertising agency came up with “SLOTCAR,” an edgy eight-episode NASCAR spoof that popped up on the Internet this spring. The shorts, which feature ribald humor and advertisements that got the attention of NASCAR bloggers, were viewed millions of times and generated thousands of new MySpace friends.

It’s that sort of work that has Animax expanding even as the recession has caused many media companies to scale back their advertising budgets. But the company, which mainly focuses on online media, is used to growing during tough times. It was founded in 2001 in the midst of the tech bust.

While Animax Chief Executive Corey Torrence concedes that 2001 was “not really a good time to start a business in the tech space,” the company was launched on a belief that entertainment and advertising would converge. It was a bet that so far has paid off.

“Today if you go into an ad agency or a studio, the first 30 minutes of the meeting are the same,” said Torrence, who joined the company in January. “The question is: What are the demographics of the audience you are trying to reach and what is the call to action you expect from that audience?”

The company was co-founded by Andy Bain, an advertising executive, and Dave Thomas, actor and original cast member of “SCTV.”

Thomas said that the company has been successful because the system for traditional television advertising is broken and Animax’s nimbleness has allowed it to keep up with viewer tastes. Now, he added, more advertisers need to get on board.

“I certainly believe the attention span of the audience in comedies has gone down. There is an unwritten rule of two minutes and under for the Internet,” said Thomas. “People are TiVo-ing away, or watching on Hulu and yet advertisers are still throwing millions of dollars (to traditional media) because there is a big system that is too big to move.”

Torrence said that the company has been able to deliver what clients want: entertainment that “makes customers want to come back.” That includes several virtual online worlds for children that promote well-known brands such as Disney and Ty Beanie Babies. Other clients include MTV, Nickelodeon and Playmates Toys.

The company has 92 deals in the pipeline that it will work on this year and in 2010. All of that business means Animax is hiring. Torrence said that the company works heavily with freelancers, adding workers when necessary.

The company has about 25 employees, though Torrence could see that increasing to about 85 next year.

“With measured growth we can add a whole bunch of talent,” he said.

The company is in the midst of a round of fundraising. It hopes to close on $10 million to $15 million in funding by the end of first quarter 2010. The capital would be used to make a handful of acquisitions, including other digital studios, according to Torrence. He hopes to close those deals by second quarter 2010.

Torrence also envisions another round of fundraising in 2011, which would help facilitate future growth. He said the company is looking at a large acquisition in 2011, though he declined to name the company that Animax is targeting.

No posts to display