MWW Group: Agency Business Report 2007

MWW Group celebrated its 20th anniversary with a strong performance and national expansion.

MWW Group celebrated its 20th anniversary with a strong performance and national expansion.

Financial growth was led by the success of its consumer lifestyle practice, which has emerged as one of the leading ones in the country, winning accounts like Samsung and Volkswagen of America. Michael Kempner, CEO, says the agency also experienced "tremendous organic growth" through such existing clients as Sun Microsystems, McDonald's, Nikon, and Sara Lee.

The agency expanded globally in 2006, opening an office in London. "Growth across Europe will be a major priority for us in 2007," Kempner says, adding that the firm expects to open offices in two to four countries in Europe before year's end. He adds that there is potential for expansion to India and Asia in the next year or so.

Principal: Michael Kempner, CEO
Ownership: Interpublic Group
Subsidiary companies: Financial Relations Board
Offices: 11 US; one in London

Staff
MWW Group added nearly 40 employees in 2006, bringing the overall headcount to 241. The agency also reported an 89% retention rate. Seven senior staff members joined the agency, including Tina-Marie Adams, SVP and GM, Chicago; Don Bartholomew, SVP and GM, Dallas; Mark Matzen, SVP in the public affairs and government relations practice; and Peter Warrick, SVP in the corporate communications practice. VP John Digles and SVP Neil Dhillon left the agency.

Regional performance
In 2006, the agency opened offices in London, Dallas, Miami, and Irvine, CA. MWW reported healthy growth nationwide, particularly in the East Rutherford, NJ, headquarters and New York City offices, which were helped by key account wins. The San Francisco office has benefited from the business in the Bay Area, and the Dallas office experienced significant growth in only its first six months.

Practice areas
MWW Group has more than 20 practice areas, including consumer lifestyle marketing, corporate communications, IR, crisis communications, public affairs, healthcare, and technology marketing. In 2006, the agency added three practices: sustainable technologies, which offers clients advice in marketing its eco-responsible technologies; Dialogue Media PRO, aiding clients with new media; and the Campus Dialogue education practice. The consumer lifestyle marketing, sports, entertainment, and new-media/Internet practices showed the most growth.

Accounts
MWW's key account wins included Samsung Electronics, Volkswagen of America, The Motley Fool, and ING Direct. The agency lost some New Jersey state work
due to budget cuts.

Financial performance
The agency reported global revenue of $46,653,055 for 2006, a 4% increase over 2005, with both top- and bottom-
line growth.

Agency's full questionnaire follows below:

Name of parent division/company (enter both where applicable) 
The Interpublic Group of Companies

Name of subsidiary companies      
Financial Relations Board

Has your ownership status changed in the past year? If yes, please explain         
N/A

Name of global CEO and US CEO (or most senior equivalent)   
Michael W. Kempner

What is your current headcount?   
241

How has your headcount changed since FY 2005?
+39 since FY 2005

What was the percentage of staff turnover in 2006?        
89% retention

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company

Tina-Marie A. Adams was named senior vice president and Midwest General Manager of the agency's Chicago office. She joins MWW Group following seven years at Hill & Knowlton (H&K) where she served as Midwest director, public affairs & healthcare.

Don Bartholomew, senior vice president and Dallas General Manager, joined MWW Group from Bartholomew joins MWW Group from GCI Group where he held the positions of executive vice president, technology practice and executive vice president, director research & measurement.

Stephen Altobelli rejoined the firm as vice president, public affairs. Most recently, Altobelli served as senior vice president at Patronus Advisors, where he provided strategic counsel to corporate clients in all aspects of communications, including public affairs, employee relations, investor relations, community affairs and media relations.   

Garrett Glaser as vice president in the firm's corporate communications practice.   Glaser worked both as an on-air correspondent covering breaking stories around the world, as well as a public relations executive, assisting corporations and not-for-profit organizations. 

Mark Matzen as senior vice president in MWW Group's national public affairs and government relations practices.  Matzen joined MWW Group from the State of New Jersey Governor's Office where he was most recently Deputy Chief of Staff for Governor Richard Codey.  In that position he spearheaded many of the Governor's initiatives and was responsible for pro-active communication promoting the Governor's agenda.

John Musella as vice president in the firm's Los Angeles office. Prior to joining MWW Group, he served as director of public relations at KB Home, a Fortune 500 company and one of America's largest homebuilders. Musella brings a well-rounded background that includes extensive media relations, public affairs, strategic issues development, corporate communications and government experience.

Peter Warrick as senior vice president in the firm's corporate communications practice.  A former labor and employment attorney, Warrick has spent the last 15 years providing high-level strategic investor relations, mergers & acquisitions, litigation support, issues management and financial and internal communications counsel to leading corporations and C-suite executives in the U.S. and abroad. Most recently, Warrick served as managing principal of The Weiser Group, where he spearheaded corporate communications for such clients as CEMEX and Coca-Cola FEMSA.

What senior staff have departed the firm? Please state name and previous title
John Digles, Vice President
Neil Dhillon, Senior Vice President

Please list any other senior management changes, including restructures and significant, senior-level promotions
Matt Rose
, to executive vice president from senior vice president.
Carreen Winters, to executive vice president from senior vice president
Richard Tauberman, to executive vice president from senior vice president
Kevin Frechette, to vice president and general manager of MWW Group's Trenton office

Have you made any acquisitions in the past year, or merged with another agency?      
N/A

How many wholly owned offices do you have globally?
North America:
Chicago
Dallas
East Rutherford, NJ
Irvine, CA
Los Angeles
New York
San Francisco
Seattle
Trenton
Washington, DC
Miami

Europe:
London

How many partly owned offices or affiliates do you operate globally?
None

What offices opened in 2006 or early 2007? (State when)
London
Dallas
Irvine
Miami
(all offices opened in 2006)

What offices closed in 2006 or early 2007? (State when)           
N/A

Which regions, US and globally, are growing, and why?
MWW Group is growing consistently, both nationwide and internationally. Our San Francisco office has been capitalizing on the business boom in the Bay area, continuing to grow at a significant pace, as has our new Dallas office, which has seen significant growth in its first six months. All of MWW Group's offices nationwide have seen healthy growth in 2006, particularly our East Rutherford, NJ headquarters and New York City offices, with the addition of significant new business wins in 2006 including Samsung, The Motley Fool, Anheuser-Busch and more. 

How many practice areas do you have? Please list.
Consumer Lifestyle Marketing
Corporate Communications
Investor Relations
Transactions Communications
Crisis Communications
Employee Communications
Public Affairs
Government Relations
Healthcare
Technology Marketing
B2B Marketing
Economic Development
Cause Marketing
Not-for-Profit
Sports Marketing and Sponsorships
Sustainable Technologies
Fashion & Image Marketing
Entertainment
Radio Services & Promotions
New Media/Internet Marketing
Creative Services
Campus Dialogue

Which ones are new?
Sustainable Technologies, DialogueMedia PRO and Campus Dialogue education practice

Of those, which ones are part of the core strategy of the agency? 
MWW Group views its new Sustainable Technologies practice, which offers clients focused expertise in marketing eco-responsible technologies and in effectively positioning technology companies for which environmental sustainability is a key tenant of their R&D regime and product set, as a core strategy of the agency.
  
The Sustainable Technologies practice is utilizing the expertise and best practices of the agency's technology,  corporate social responsibility and investor relations practices to up-level the value proposition of "green" technologies and processes from straight-forward consumption and efficiency statements to true business and corporate citizenship differentiators.
  
Through our work with Scottish Development International, MWW Group supports a number of UK-based renewable energy and green technology companies looking to develop partnerships and market products in the United States, including Ocean Power Delivery, the European Marine Energy Centre, Talisman Energy, the Beatrice Wind Farm Demonstrator Project and Renewable Devices.  MWW Group also represents the Office of Clean Energy at the New Jersey Board of Public Utilities which provides education, information and financial incentives for renewable energy systems and energy efficiency measures. Additionally, MWW Group works closely with Sun Microsystems on environmentally-responsible technologies as part of its corporate and executive positioning and corporate social responsibility initiatives.
  
MWW Group's DialogueMedia practice, which brings a deep knowledge of cutting edge technologies and trends to MWW Group clients, expanded further this year with the launch of DialogueMedia PRO, which optimizes client communications for maximum effectiveness with search engines, media sites, RSS feeds, industry sites and blogs. The practice guides clients on relationship building with bloggers, creating blogger- and search engine-friendly pressrooms, and other tactics, including press release podcasts.  DialogueMedia PRO is integrated throughout all of MWW Group's practice areas and tactics are integrated into almost every client campaign.

Which practice areas have been phased out in the past year?
N/A

What practice areas showed the most growth? Please elucidate. 
Our consumer lifestyle marketing, sports marketing and sponsorships, entertainment and New Media/Internet marketing practices have shown tremendous growth in 2006 and early 2007, with strategic account wins and significant revenue and staffing increases.  
  
MWW Group's consumer lifestyle marketing group added its first major automotive client with the addition of Volkswagen, and added to its strong consumer electronics client roster with the addition of Samsung. Our sports marketing and sponsorships practice handled Bank of America's Olympics and NASCAR sponsorships, Samsung's NFL sponsorship, and numerous other high-profile sports and sponsorship opportunities for clients. Our entertainment practice, which is integrated throughout our work for many MWW Group clients, included: leveraging the Black Eyed Peas' Fergie on behalf of Samsung MP3 players; raising the profile of Samsung's Four Seasons of Hope cause marketing initiative through the support of Dan Marino, Bob Costas, Faith Hill and Tim McGraw, Joe Torre, Boomer Esiasion, and Arnold Palmer; a star-studded post- Golden Globes party for MWW Group client 9900 Wilshire featuring "The Office" star BJ Novak, "Borat" star Sacha Baron Cohen, and movie stars Amy Smart and Darryl Hannah. In 2006, Dialogue Media new media strategies were integrated into almost every MWW Group program, which included blogger outreach for Nikon, Anheuser-Busch, Samsung and others, podcasts/vodcasts, RSS feeds, wiki and more.

Which practice areas showed the least growth? Please elucidate.
N/A

What is the distribution of accounts across practice areas?
About 30% of our accounts are in Consumer Lifestyle Marketing, 20% are in Public Affairs, 25% in Corporate Communications, 10% in Healthcare and 15% in Technology Marketing.

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
Key account wins in 2006 include: Samsung Electronics, Volkswagen of America, The Motley Fool, Time Warner Center/Related Companies, Floam, Ball Park Franks, Jimmy Dean, ING Direct, American Chamber of Commerce Peru, Cott Beverages, Blackhawk Network, Cisco Systems, Coca Cola FEMSA, comScore Networks, Inc (Germany, France, UK and The Netherlands), Diabetes Centers of America, John Deere & Company, Shell Renewables and Hydrogen

Of your 2006 wins, how many were across three or more countries?
comScore Networks, Inc.

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
Hain Celestial (resigned to take Gardenburger in January 2007)
New Jersey Lottery (funding for client lost due to statewide budget cuts)
New Jersey Department of Health Services (funding for client lost due to statewide budget cuts)

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
MWW Group expanded a large number of its existing accounts into new domestic and international markets.

What proportion of your clients are on a retainer? Has this changed over the past year?
75%
This represents an increase over 2005.

What was your 2006 global (including US) revenue?
$42,653,055

What was the % change over 2005 global revenue
$4%+

What was your global profit margin in 2006?
N/A

What was your 2006 US revenue?
$42,653,000

What was the % change over 2005 US revenue
+4%

What was your US profit margin in 2006?
N/A

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.
Top-line growth and bottom-line growth.

How much of your growth was organic, and how much was due to new business won?
While much of our growth in 2006 was due to significant new business wins, organic growth continued to be a strong contributor to MWW Group's bottom-line growth.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
MWW Group's performance in 2006 exceeded expectations, with the addition of major new client brands to our roster, the opening of four new offices, significant senior staff additions and our 20th straight year of top-line and bottom-line growth.

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