Cappelli to open the Ad Store with 10 clients, project fees

Paul Cappelli, the ex-McCann-Erickson and AC&R creative, is setting up shop–literally–next month,
Capelli said that The Ad Store, which he describes as the first store-front agency in New York, will open on Oct. 1 with about 10 clients in the fold, including Delma Watches USA and ABC Television, and billings of $4-5 million. Joining Capelli is creative director William Atherton, a former creative at Saatchi & Saatchi. Other clients from the beverage and telecommunications industry may be on board when the shop opens, Cappelli said.
“This is the ultimate unbundling of an agency,” said Cappelli. “We will offer every service, of an ad agency at prices that will be 15-30% less.”
Under the positioning “Madison Avenue Quality at Mainstream Prices,” The Ad Store will target clients with billings of anywhere from $20,000 to $5 million, and it will operate on a project basis with no retainers. It will seek a fee for each of its jobs and want payment at the completion of the work. “We’re not after accounts; we’re after clients,” noted Cappelli. “Agencies have traditionally sat around the same pond fishing for the same fish, but we have no intention of fishing in t,hat pond,” he said. “We’re going to target. a :much bigger pond with smaller fish–small businesses.”
In another twist, the startup plans to advertise itself on local TV, radio and print a few months after it opens to drum up new business.
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