Austin monolith GSD&M first opened in 1971, heralding a newer, cooler era for the city that never naps too late in the afternoon.

It was a bold move in a quiet town. Twenty-six years later, the agency has a national client roster and boasted billings of $1.15 billion US in 2001, in a city that recently topped the US census bureau's list of fastest growing cities. And it's spawned an entire local industry in the process.

Creative/account planning team Bryan Jessee and Mark McGarrah left GSD&M after working together for five and a half years. McGarrah/Jessee opened in 1996 and is now 25 people strong with a client base including sports drink Hydrade and Frost Bank, Texas' largest. The shop recently won a pitch for the Texas Stampede (now in its third year in Dallas), the campaign for which will include a television element for northern Texas.

"Roy Spence [president of GSD&M] really pushed you to think like an entrepreneur," says Jessee. "He'd divided the agency into three different companies. Mark and I ran a business unit. Our next big challenge was a huge account that Mark won but we didn't really think we wanted to do. We decided it was time to step off on our own."

Doug Lyon is the latest spawn. The young creative hot-shot set up Lyon Advertising in an inauspicious Austin house in 1997 after five years of successful campaigns for GSD&M. His creative team now includes alumni from Wieden + Kennedy and Leo Burnett. The agency concentrated mainly on freelance business for GSD&M in their first year and later picked up its own clients. Lyon is pursuing the contract for a national video game campaign, which is sure to put the boutique on the map.

"GSD&M is the reason I'm here," Lyon says. "They're the reason a lot of people are here. We've got a New York-type agency in beautiful Austin, Texas and it breeds great talent."

Lyon's goal is to offer big ideas to small brands. Three spots for local salon INNU were bold in concept and execution. Simple cut-outs slowly scroll across a pastel background to a square box in the center, and scroll out transformed. Caterpillars turn to butterflies, water drops to snowflakes, and washroom people turn to sexy hipsters.

"What's really cool is seeing it on TV," Lyon says. "All of a sudden, boom! Here's this moment of peace."

Lyon is now at work on a follow-up to their last St. Edwards University campaign that used a green screen to place students on the moon, illustrating the real life experience the college offers.

Creative editorial house 501 Post opened its doors around the same time as Lyon and has had no problem attracting talent or work. Editor Gavin Tatro moved to Austin last year to do national work and raise a family. Editor Angelo Valencia, who joined 501 at the same time, recently left the company. Executive producer George O'Dwyer is sad to see him go, but is also pleased to have had a part in creating a top notch, sought-after editor.

Says O'Dwyer, "Austin is just the right place to be. And we've got everything here that we need to attract the right people."

I'll barbecue to that.

501 Post> http://www.501post.com
GSD+M> http://www.gsdm.com
Lyon Advertising> http://www.lyonadvertising.com
McGarrah/Jessee> http://www.mc-j.com
Tequila Mockingbird> http://www.tequilamockingbird.com