Advertising agency Tag Digital has achieved record revenue, fuelled by investment in artificial intelligence (AI) technology, major contract renewals, and work on some of the biggest events in North America and the Middle East.
The Glasgow-based firm’s turnover for the financial year just ended is expected to be around £8.5m, with a forecast of 35% growth for this coming year.
Founded by husband-and-wife team Craig and Laura Davidson in May 2011, the agency has been involved with international events including LEAP, FEAST and CityScape KSA in Saudi Arabia, as well as IDEX in Abu Dhabi, reMind in North America, CPHI Barcelona and Brand Licensing Europe in the past 18 months.
Events Industry Council statistics showed the global business event industry recovered to more than 80% pre-pandemic levels last year, with that resurgence helping Tag Digital’s revenues to grow by almost 40% year-on-year – with the business growing its team to more than 40 to meet demand.
Early investment in AI tech, spearheaded by chief technology officer Alex Velinov, has been key to this growth.
Tag Digital, which supports more than 2,000 events per year across more than 50 countries, has also been buoyed by the renewal of a contract with Informa’s market and connect divisions that will see the businesses work together until 2026. It’s the third time Informa has renewed a contract with Tag Digital since 2017.
Laura Davidson said: “Our success internationally has played a huge part in the growth, and our early investment in AI technology to support our paid advertising activity has been a key driver, particularly in relation to product diversification.
“Innovation has always been essential to what we do and Alex and the team’s work to harness AI’s potential has supported the significant growth of our global client roster.
“It’s not about AI replacing the work of people, but rather enhancing it, and it’s that smart, innovative use of the tech that has been crucial.
“We’re excited about what’s possible now we’ve diversified our product offerings and the events world is thriving again.”
Velinov, who joined Tag Digital in 2015 as a pay-per-click specialist, commented: “People are still crucial for digital marketing for a variety of reasons - they have free will, they can decide to do something or not.
“AI doesn’t have will, it can solve some problems, but will never come up with an idea about the problem – at least not yet.
“People are needed because people are doing business with people, machines can do some of the heavy lifting in every business, but to make business you still need interactions on a human level.”
The paid advertising agency specialises in campaigns for clients in the events sector, which meant it was hit hard during the pandemic - which wiped out more than 95% of its revenue as hundreds of events were cancelled within months.
However, the firm pivoted towards data building and digital sponsorship to support clients, retain jobs and grow.
It launched the Tag Digital Academy – building a digital training system to help take on young talent with limited experience and train them to become paid advertising professionals.
Craig Davidson said: “Paid advertising moves so quickly that it’s extremely difficult to learn the skills required outside of a business environment.
“We are perfectly positioned to develop young talent and help to plug major skills gaps in the UK – it’s really difficult to find people in this sector.
“Through the Tag Digital Academy we hope to develop the best digital talent who have all the skills needed to help event organisers around the world navigate the rapidly evolving world of digital advertising to drive revenue and event attendance.”
Laura added: “Whilst the past three years might not be what we planned for, we have learned so much about ourselves, the team and the business – the fact that we have bounced forward is testament to the resilience of the team and the creative solutions that we put in place in a challenging time.”
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