Podcast
Sam Shennan talks about growing INCUBETA into the largest independent agency in Australia
INCUBETA founder Sam Shennan joins Steve on the latest episode of Give It A Nudge to talk about growing INCUBETA into the largest independent agency in Australia.
About the guest
Sam Shennan
Founder at INCUBETA
Sam Shennan is the founder of INCUBETA, Australia’s largest independent digital agency. He left Google after being headhunted by a Cape Town-based agency that had no Australian presence, set up operations from his Bondi bedroom 10 years ago, and built the business to 30 Australian staff, 40 in Cape Town, and more than 50 active Australian retail clients including Les Mills in 74 countries. Prior to INCUBETA, Sam was one of the founding members of Google’s retail team in Australia during the early years of Australian e-commerce.
Episode overview
Sam Shennan joined Steve Grace on Give It A Nudge to tell the story of building INCUBETA from a Bondi bedroom into Australia’s largest independent digital agency. The conversation covers the decision to leave Google, the cash flow lessons learned after large Australian brands went under owing hundreds of thousands of dollars, the structural change INCUBETA made to have clients pay publishers directly, TikTok’s rise in the digital advertising landscape, and a personal belief shift that took Sam from thinking a triathlon was physically impossible to registering for an Ironman.
Leaving Google for a bedroom startup
Sam was one of the founding members of Google’s retail team in Australia, working with the first wave of Australian e-commerce businesses including David Jones and Harvey Norman when they barely had more than a catalogue on their website. A Cape Town agency that managed some of his largest clients had no Australian presence. In true South African fashion, they convinced him to leave the breakfast, lunch, dinner, and weekly Swedish massage of Google to set up their Australian operations from his Bondi bedroom.
“Long story short, in true South African way, they convinced me to leave Google. And I said goodbye to my breakfast, lunch, and dinner and my weekly Swedish massage with a six-month-old child and set up the business in my bedroom in Bondi.”
Sam Shennan 4:00
The cash flow lesson that changed the model
The biggest mistake in the business’s early years was not staying on top of cash flow and debtors. INCUBETA had well-known Australian brands go under owing in excess of $250,000, which they had to write off. After it happened a second time with a larger brand, Sam concluded that a third occurrence could put the business under. The response was structural: INCUBETA moved all clients to a model where they pay publishers directly. Some clients left as a result. The risk profile dropped dramatically.
“We basically went, we’re not prepared to bankroll anyone anymore. And we now get our clients all to pay the publishers directly. We lost probably clients as a consequence of that but our risk profile now is way, way, way lower.”
Sam Shennan 14:00
TikTok and the future of digital advertising
Sam sees TikTok as the most significant change coming to the social advertising landscape. The younger demographic has already shifted from Facebook to Instagram and is continuing to move toward TikTok. He predicts Google’s dominance in search will hold, but notes that the social landscape is evolving fast. He also predicts that consumer privacy concerns will pull back the degree to which advertisers can target individuals, describing the current level of behavioral targeting as having gone too far.
“From search I think Google will dominate. But I think you’ll see a lot of changes around how dominant TikTok will become. The growth of that platform is astronomical.”
Sam Shennan 27:00
From triathlon to Ironman: the belief shift
Sam used to watch friends complete triathlons and be unable to imagine doing more than a team relay. After committing under social pressure to an individual triathlon, he trained during COVID and discovered that what he thought was physically impossible was achievable with consistent work. He was completing an Ironman in the week the episode was recorded. The lesson transferred to business: anything is possible if you are willing to do the work.
Key takeaways
Chapters
0:00Introduction and INCUBETA overview2:00Google’s retail team in Australia and early e-commerce5:00Leaving Google and setting up INCUBETA from a Bondi bedroom10:00Growing to 50-plus clients and 30 staff in Australia12:00The biggest mistake: large brands going under owing $250K+14:00The model change: clients pay publishers directly17:00Services: SEM, paid social, programmatic, and consultancy20:00Going global: Les Mills in 74 countries24:00Automation, privacy regulation, and the end of granular targeting27:00TikTok’s rise and where search is headed29:00Belief change: from impossible triathlon to Ironman31:00Culture, retention, and why join INCUBETA
Mentioned in this episode
Frequently asked questions
What is INCUBETA and what makes it different?
INCUBETA is Australia’s largest independent digital agency, specialising in SEM, paid social, programmatic media, and digital consultancy for Australian retail brands. It operates with 30 staff in Australia and 40 in Cape Town. Its competitive advantage is deep retail vertical expertise and the ability to run global campaigns, managing clients like Les Mills in 74 countries.
Why did Sam Shennan leave Google to start INCUBETA?
Sam was approached by a Cape Town-based agency that managed some of his largest Google clients but had no Australian presence. He had the opportunity to build their Australian operations from scratch and made the decision to leave Google’s perks to set up the business from his Bondi bedroom. The business has grown consistently over the 10 years since.
What is programmatic media buying?
Programmatic media buying is the automated process of bidding for digital advertising inventory across thousands of websites simultaneously, targeting specific audience segments rather than buying space on individual sites. Instead of buying an ad on the Sydney Morning Herald, you programmatically bid to reach your target audience wherever they are browsing, at the best available price.
How did INCUBETA change its cash flow model after client defaults?
After two large Australian retail brands went under owing INCUBETA more than $250,000 each, Sam changed the operating model so that all clients pay publishers directly. INCUBETA removed itself from the cash flow chain entirely. The change cost some clients but eliminated the risk of large receivables defaults that could threaten the business.
Is TikTok going to become a major advertising platform in Australia?
Sam believes TikTok is already significant and its growth trajectory makes it the most important emerging channel in Australian digital advertising. The younger demographic has shifted from Facebook to Instagram and is continuing to shift to TikTok. For retailers targeting consumers under 30, TikTok is already a material part of the media mix.
Topics discussed
Full transcript
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Show full transcript (32 minutes, 6 sections)
0:00 Introduction and background
Steve welcomes Sam, noting he has worked with mutual contact Dana for years. Sam introduces INCUBETA and describes his background as one of Google’s founding retail team members in Australia during the early days of e-commerce, when David Jones and Harvey Norman barely had more than a catalogue online.
5:00 Leaving Google and building from the bedroom
Sam describes being convinced by the Cape Town agency to leave Google’s perks and set up their Australian operations. The business started with him as account manager, sales, bookkeeper, debt collector, and ad copywriter, and grew to 30 staff in Australia, 40 in Cape Town, and 50-plus active Australian retail clients over 10 years.
12:00 The biggest mistake: cash flow and client defaults
Sam describes two major defaults involving well-known Australian brands owing more than $250,000 each. The second occurrence was larger than the first and triggered a fundamental change to the operating model. INCUBETA moved all clients to paying publishers directly, removing the agency from the cash flow chain entirely.
17:00 What INCUBETA does and the global opportunity
Sam explains the full service mix: SEM, paid social, programmatic media buying, and digital consultancy. He describes managing Les Mills in 74 countries and the global capability INCUBETA offers to Australian retailers wanting to expand internationally.
24:00 The future of digital advertising
Sam predicts automation and privacy regulation will reshape digital advertising. He describes the current level of behavioral targeting as having gone too far and calls TikTok the most important new social platform, noting the younger demographic is already spending more time there than on Facebook or Instagram.
29:00 Belief change and why join INCUBETA
Sam’s belief change is personal: he went from thinking a solo triathlon was impossible to registering for an Ironman during COVID. The lesson applied to business too: anything is achievable with sustained effort and the willingness to admit you were wrong about your own limits. He closes with a pitch for INCUBETA as a place where staff stay for a decade and develop real expertise.
About the host
Steve Grace is the founder and CEO of The Nudge Group, a technology-focused recruitment and advisory business. He has built and scaled companies across Australia and the US, and hosts Give It A Nudge to spotlight founders and operators building something meaningful.
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