Paulius Senuta (Not Perfect Network): Estonia is the best place to run an agency today

Interview with Paulius Senuta, Chief Executive Officer at Not Perfect Network (LIT), is conducted by Hando Sinisalu.

What are the differences between Baltic countries when it comes to agency business?

From what I see – and I think I might be the only one who in fact sees it – Lithuania and Latvia are quite similar, though there are some differences. Estonia, on the other hand, stands out as the most different. I would actually say Estonia is the best market today for marketing agencies. There’s a notable under-supply in agency services there. For the same amount of work, revenue is about twice as high in Estonia compared to Lithuania and Latvia. So yes, Estonia is the best place to do business today.

Culturally, in Estonia, it’s acceptable for an agency to go into a presentation with just one idea. Of course, some bring more, but it’s not frowned upon to bring just one. You also see strange organizational choices. For example, I knew an agency with five creative directors, which is absurd since the creative director is meant to be the boss. In Estonia, giving someone that title is often a way to make them feel appreciated. A good copywriter gets called a creative director. These are signals that many Estonian agencies are more inward-looking and focused on internal status than on competing hard in the market.

Where do you see the biggest growth potential in the Baltics?

For us, growth comes from outside the Baltics. We are focused on external markets because our domestic ones are simply too small. The Baltic countries have long underspent on marketing. If you look at global benchmarks – like the Gartner report, which says that companies long-term invest around 10% of their revenue into marketing, we’re far below that. Few clients here even hit 5%.

And I don’t see that changing anytime soon because the overall cultural appreciation for marketing, especially the artistic, creative side that agencies typically bring, is still very low in our region. That’s why we’ve focused to get business from outside. About 20% of our revenue today comes from markets outside the Baltics.

If agencies in the Baltics want to become truly competitive, they have to look beyond their home markets. 

There are a few small digital agencies that export services, doing SEO or Google Ads for companies in places like Australia. But those are small-scale exceptions. I don’t know many successful export cases. You don’t see Baltic equivalents of Forsman & Bodenfors selling across borders.

I think there are two main problems. First, not all services are equally exportable. Some, like campaign management, require a certain local presence. Others, like design or web development, are easier. But more importantly, most agencies aren’t prepared to export. They put in very little effort. Many agency people in the Baltics I talk to have almost no understanding of what it takes to sell to other countries. It took us years to get where we are.

 What do you do differently?

Well, I don’t want to give away all our secrets, but here are some things we do. First, you need a story. And it can’t be just about price. Low price signals low quality. Plus, there’s always someone cheaper. Go to India and you’ll find a lower price than yours. Our story is quality plus speed.

Speed is crucial. Companies move incredibly slow. We worked with the American clients that we rebranded. For them the first project we delivered in three weeks. Their incumbent agency had spent nine months and wasn’t halfway done. So speed matters.

Also, you have to understand how to operate outside your country. It’s not obvious. You have to make it very simple for the client. You need people on the ground. If you’re working in the U.S., you can’t show up as clueless Lithuanians. You need partners, freelancers, someone local who understands the market. And you have to communicate your value very clearly.

With the American client, we spent years nurturing that contact. We saw things weren’t working for them with their current agency. We positioned ourselves as fast and reliable. And when they hit a wall, we were there and ready. That’s how it works.

Lastly, you have to prospect. A lot. You need tens of leads to land one client. And that takes relentless effort. Many of our peers just don’t have that kind of ambition. It’s easier to get a local client where the competition is limited.

Do you think the lack of ambition is part of the problem?

Yes, absolutely. Expanding to new markets means disruption, hard work, and risk. And international clients don’t come to you. You have to go to them. I went to Cannes this year and finally understood why people go there – not for the festival, but for business. I spent days in 35°C heat chasing meetings. It was exhausting, but that’s what it takes.

You mentioned not all services are exportable. Which ones are?

Most of what we export is design and web development. A bit of creative as well, but primarily design. It doesn’t require local campaign execution. Design is more universal. That might also be because our portfolio looks best in that space, and global buyers respond better to it. Creative work often needs local insights, which makes it tougher to sell internationally.

We’re doing a large packaging project in Sweden right now. I won’t name the brand, but it’s significant. We hired Swedish people to help judge the creative work. That’s how we always operate abroad. We either hire local freelancers or partner with local agencies. You can’t bring Lithuanian sensibilities to Sweden and expect them to work. You need local judgment.

So it’s like having a retail vs. wholesale strategy?

Exactly. Sometimes we go retail – direct to clients. Other times we work through partners. Either way, we always involve people on the ground. It’s growing too. In fact, it’s the only part of our business that’s growing significantly right now.

 Speaking of Lithuania, what’s the business mood like?

The economy is doing well, and businesses are optimistic. But the marketing sector still isn’t growing as fast as it could. Investment in creativity remains low across all three Baltic countries. Maybe we’re seeing the early signs of a creative renaissance, but it’s still early.

What’s your take on AI? How do you use it day-to-day?

We use AI constantly. Everyone does. It’s like a tool or a collaborator. But 99% of that use is for prototyping—idea generation, rough drafts, sketching. Very little makes it into the final product.

I don’t really believe persona concept usefulness, so I’m skeptical about AI-generated ones too.

BalticBest 2025

You can find rules HERE.

Submission deadline: 08.08.2025 -> extended until 12.08.2025 5 PM (Estonian time)

Shortlist published: 19.08.2025

Live judging and awards announced: 27.08.2025

SUBMIT YOUR WORK HERE!