May '11 PR Rankings Issue - Odwyerpr.com

SPECIAL REPORT
PR firms attribute recent growth to social media
Only one of the ten biggest firms reporting their numbers to
O’Dwyer’s experienced a down year in 2010 — a sharp contrast
to 2009, when eight of the ten reporting firms showed
net fees in the minus column. Nearly all cited a single factor
— social media — as a reason for the sudden rebound.
WPP head Martin Sorrell on
March 4 told the Financial
Times that he expects “new
media” will make up to 35-40% of
WPP’s revenues in the coming years.
During a speech to the Institute for PR in
November 2008, Sorrell similarly said
social media is made to order for PR people
because they are used to interaction
and “nuanced” communication.
WPP, one of the two biggest ad agency
holding companies with $15 billion in
revenues, owns many PR firms including
Hill & Knowlton and Burson-Marsteller.
WPP and the other conglomerates have
not allowed any dollar or employee totals
to emerge from their PR firms since 2001
because of Sarbanes-Oxley considerations.
Blue chip companies were told last
year to approach the web with caution
during a press conference held by Vision
Critical, which does research for blue
chips. Social media is an “expensive and
potentially explosive medium” but tends
to represent “the bleeding edge of humor,
provocativeness, candor or shock value,”
the conference was told.
PR industry rebounds with big gains
Of the largest firms reporting their net
earnings to O’Dwyer’s, 11 of the top 25
and 22 of the top 50 showed double-digit
gains, a contrast to 2009 when 32 of the
top 50 had downturns.
Seventy-one of 152 firms reporting had
double-digit gains vs. only 22 of 135
reporting having such gains in 2009.
See O’Dwyer’s rankings of
TOP U.S. PR firms, pg. 26
WCG, formerly WeissComm Group,
had the biggest gain in the top ten — up
37.6% to $37 million, in fifth place
behind Waggener Edstrom at $111.9 million,
up 5.9%, and Ruder Finn, at $97
million, up 8.8%.
Soaring past the half-billion mark was
top-ranked Edelman with an $81.8 million
gain to $521.9 million, a jump of
18.6%.
Richard Edelman, President and CEO
of Edelman, said much of the 2010 gain
10
MAY 2011 WWW.ODWYERPR.COM
By Jack O’Dwyer and Kevin McCauley
was from current clients expanding their
budgets.
“Clients took advantage of our expanded
digital offerings,” he said.
The firm built online “embassies” for
Unilever and eBay on Twitter and
Facebook, among its digital assignments.
“Our global network hit full stride in
2010 as accounts based in New York and
London ran campaigns out of overseas
offices,” he said. “Especially active”
were Shell and liquor marketer Diageo.
International work generated 34% of
the fee total, rising 18.2% to $179 million.
The firm operates in 27 markets
overseas. China revenues grew 27.7% to
$10.4 million; Brazil up 68% to $6.8 million;
Singapore up 36% to $6.3 million,
and Hong Kong up 21.3% to $5.3 million.
“Clients are no longer asking ‘just for
press’ but for a range of things,” said
Edelman. “Clients are now operating
from a different runway, they now ask us
to tell them what to do.”
Digital, social media drives PR growth
Atomic PR, a tech, consumer and
entertainment firm, posted the biggest
gain in O’Dwyer’s top 50 — up 46% to
$11.1 million.
Atomic PR CEO Andy Getsey,
described the “Atomic style” as “lots of
re-contextualization, content strategy,
media relations, digital and social media,
community outreach and video all working
together.” He said such techniques
were applied when the firm kicked off the
year with the re-launch of Polaroid at the
Consumer Electronics Show which
included the participation of Lady Gaga.
Another major account was the Trust
for Public Land. The firm developed a
high-profile campaign to “Save the
Land” surrounding the iconic
“Hollywood” sign that sits on a mountainside.
Said Getsey: “This included a
huge stunt, public affairs, press conferences,
top Los Angeles political leaders,
the ‘Governator,’ A-list celebrities and
even the Vatican News Service plus a
microsite about the Sign and Facebook,
Twitter and custom applications.”
Playboy’s founder Hugh Heffner gave
a $1 million donation and even Tweeted
about it.
Existing clients expanding budgets
including Verizon, Intuit/Mint.com,
Living Social, Hotwire and RealityTrac.
New business wins included Netgear,
Citrix Online, Pioneer, LendingClub,
PeopleMedia and Shopkick.
The 46% jump in fees to $11.1 million
required the addition of 35 staffers.
Kathy Bloomgarden, co-CEO of Ruder
Finn, said: “Social
and digital media
are now part of
almost all of our PR
programs. Online
channels have
changed conversation
and engagement
with all stakeholder
groups.
“Ruder Finn
Innovation Studios
is a critical partner
in helping us to create
integrated campaigns
with social
media expertise
deeply embedded
in all of our practices.
This has created
more robust
Richard Edelman,
President and CEO
of Edelman, said
much of the 2010
gain was from current
clients expanding
their budgets
who “took advantage
of our expanded
digital offerings.”
programs with larger budgets. Activism
and market uncertainty have reinforced
corporate reputation efforts and issues
management plans.”
Bloomgarden said corporate attention
is focused on emerging markets such as
China. RF campaigns in China for
Chinese companies and multinationals
have “grown expansively,” she said.
Healthcare, “non-traditional” growth
Healthcare specialist WCG (formerly
WeissComm Group) grew 37.6% to $37
million.
WCG CEO Jim Weiss cited growth in
its core healthcare business as well as
expansion into consumer and technology
categories. “We had great strategic hires
in the past year,” he said.
See O’Dwyer’s rankings of top
HEALTHCARE PR firms, pg. 30
These included Creative/Interactive
and Global Practice Leader Gail Cohen,
formerly at Burson-Marsteller; Group
Creative Directors Trip Hosmer from
Chandler Chicco and Scott Schindler
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