Lucid, which will be headed by London-based producer Daniel Healy, will concentrate on producing campaigns for leading advertisers in Scotland and has already secured work for the Scottish Executive and Scottish Enterprise, as well as a pan-European drive for Velux Windows.
In addition, it has just completed production of the new on-screen station branding for STV across Scotland.
Although Lucid's initial focus will be on agencies covering the Scottish market, plans are already being formulated for a move into London within 12 to 18 months.
The new company will be led by Healy, a former producer with London-based production companies Rose Hackney Barber and Ridley Scott's production company RSA.
Healy has worked on a wide range of campaigns for advertisers including Sony, Dove, Walls, Actimel, Eurostar and McDonald's.
Lucid is already a member of the Association of Production Agencies and is the only production company in Scotland to be part of the body.
Sean Duffy, commercial director at SMG, said: "Our strategy in targeting the agencies is to adopt a creative, lateral and flexible approach to every campaign we pitch for.
"The objective is to assess the agency's creative reference for their client and then source directors to match that.
"Although Lucid will be based initially at SMG's new Pacific Quay headquarters in Glasgow, the long-term aim is to build a solid platform in Scotland for the business before making the move into the London market."
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