2006 Agency Business Report: Euro RSCG Magnet

Magnet has suffered from its management churn, both in terms of client retention and morale, and John Margaritis, executive director, was brought in to steady the course, and also help align the group's agencies into a genuine network.

Magnet has suffered from its management churn, both in terms of client retention and morale, and John Margaritis, executive director, was brought in to steady the course, and also help align the group's agencies into a genuine network.

Margaritis boasts a good success rate with new-business pitches since his arrival at the end of 2005, and is also feeding referrals to sister ad agency Euro RSCG.

"[Euro RSCG] has never been able to build a powerhouse in the US," he says. He says he intends to change that, and is eyeing consumer acquisitions.

Name of parent division/company:
Euro RSCG Worldwide, the largest unit of Havas

Name of global CEO and US CEO (or most senior equivalent):
John Margaritis, executive director, Euro RSCG Worldwide PR

Name of person, if any, the most senior person named above reports to:
David Jones, Global Chief Executive Officer, Euro RSCG Worldwide

What is your current headcount, and how has it changed from this time last year?
105, down 10%

What was the percentage of staff turnover?
35%

Did you make any senior hires in 2005 (VP and higher)?
John Margaritis, Asprey
Melanie Vigliotti, Edelman

What senior staff have departed the firm?
Aaron Kwittken, CEO; Paul Jensen, President; Matt Wolfrom, Executive Vice President & General Manager
Other senior management changes

How many offices do you have globally?
29 owned, 18 countries
North America:

7 (New York; Washington, DC; Pittsburgh; Los Angeles; Southern California; San Francisco; and Chicago)
Europe:
15 (Belgium; Finland; Germany; Poland; The Netherlands; UK; Czech Republic; France; Italy; Portugal; and UK)
Middle East:
3 (Israel; UAE; and, Lebanon)
Asia Pacific:
4 (India; Indonesia; Philippines; and Australia)

Is there a particular region, US and globally, that is growing right now?
Europe, North America

How many practice areas do you have?
9

What practice areas showed the most growth?
Corporate

What key account wins did you have in 2005?
Yahoo!Hot Jobs, Exalead, PerkinElmer, and Skoll Foundation

What key accounts did you lose in 2005?
Mercedes-Benz USA and Towers Perrin

Did you expand any existing accounts into new domestic or international markets?
Exalead

What proportion of your clients are on a retainer?
68%

Has this changed over the past year?
No

Did you experience top-line or bottom-line growth in the past year?
No

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
Fell short of expectations.

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