Brodeur Partners: Agency Business Report 2006

Brodeur is working to transition from a tech specialist to a more full-service firm, and plans to grow by bringing in more talent and concentrating on more consumer-oriented b-to-b technologies.

Brodeur is working to transition from a tech specialist to a more full-service firm, and plans to grow by bringing in more talent and concentrating on more consumer-oriented b-to-b technologies.

The India expansion is a key element in the firm's development plan for the whole Asia-Pacific region.

Brodeur sees its client wins with Toshiba and The History Channel as highs for 2005, and backing up its move away from tech. Says Andrea Coville, CEO.

"Where I hope to bring Brodeur in this coming year is to differentiate us from our competitors on our service approach.

Name of parent division/company (enter both where applicable) :
Omnicom Group

Name of subsidiary companies:
Beaupre & Co.
InComm Brodeur (Korea)

Name of global CEO and US CEO (or most senior equivalent):
Andrea Coville

Name of person, if any, the most senior person named above reports to:
Dale Adams, President, DAS, Omnicom

What is your current headcount, and how has it changed from this time last year?
Unfortunately, due to SEC rules and Omnicom policy, Brodeur can no longer make public its revenue, employee numbers or any financial information.

Did you make any senior hires in 2005 (VP and higher)?
No new senior hires in 2005.

What senior staff has departed the firm?
Beth Ann Kaminkow, who had served as COO, left at the end of 2005 to focus on a "Chief Talent Officer" role at a sister company within Omnicom.
Terresa Christenson left during the year for another opportunity in the San Francisco area.

Other senior management changes
Steve Marchant and Judy Feder have been elevated to EVP level. Jerry Johnson is focusing on building out the Brodeur Strategic Planning function. Ray Thomas has taken on the operational duties, in addition to continuing client work.

Have you made any acquisitions in the past year, or merged with another agency?
On February 8, 2006, we announced an expansion of Brodeur-branded operations in India by incorporating the Indian PR operations of our sister Omnicom advertising agency TBWA, giving ust immediate access to resources in six Indian cities. This move provides the springboard for Brodeur's expansion in the sub-continent, and is a key element in the agency's development strategy for the whole Asia Pacific region. Brodeur India has offices in New Delhi, Mumbai, Chennai, Bangalore, Pune and Coimbatore.

How many offices do you have globally?
Brodeur operates Brodeur branded and equity-owned offices in the United States, Korea and India, and serves clients in EMEA through the Brodeur | Pleon Worldwide network. The Pleon brand includes 31 offices in 15 European countries. Globally, including partners and affiliates, the Brodeur |Pleon Worldwide network operates from 80 offices in over 50 countries.

North America (6)
All branded Brodeur offices, Boston (Brodeur HQ); New York; Phoenix; Portsmouth - branded Beaupre & Company Public Relations, a 1999 acquisition; San Francisco; Washington, DC

South America (8)
Bogota (Colombia), Buenos Aires (Argentina), Lima (Peru), Mexico City (Mexico), Panama City (Panama), Rio de Janeiro (Brazil), Santiago de Chile (Chile), Sao Paulo (Brazil)

Europe (31)
Amsterdam (The Netherlands) - EMEA HQ, branded Pleon; Baar/Zug, Berlin, Bonn, Brussels, Bucharest, Budapest, Dresden, Duesseldorf, Frankfurt, Geneva, Genoa, Graz, Hamburg, Kiev, Klagenfurt, Leipzig, Linz, London, Milan, Moscow, Munich, Paris, Prague, Rome, Salzburg, Stuttgart, Tiel, Vienna, Warsaw, Zagreb
EMEA Affiliates / Partners: Baar (Switzerland), Brastislava (Slovakia), Brussels (Belgium), Dubai (United Arab Emirates), Dublin (Ireland), Johannesburg (South Africa), Oslo (Norway), Sofia (Bulgaria), Sri Lanka, Stockholm (Sweden), Tel Aviv (Israel)

Asia Pacific
Seoul (Korea) - AP HQ - equity ownership, branded InComm Brodeur
Brodeur India – equity ownership – with offices in New Delhi, Mumbai, Chennai, Bangalore, Pune and Coimbatore
Asia Affiliates / Partners: Auckland (New Zealand), Bangkok (Thailand), Beijing (China), Hong Kong - 2 offices, Jakarta (Indonesia), Kuala Lumpur (Malaysia), Manila (Philippines), Shanghai (China), Singapore, Sydney (Australia), Taipei (Taiwan), Tokyo (Japan)

What offices opened in 2005 or early 2006?
On January 10, 2006, Pleon announced six new offices in Central and Eastern Europe and Russia, joining Pleon through their existing relationships with the consultancy's parent company, BBDO Europe. They are located in Croatia (Zagreb), the Czech Republic (Prague), Poland (Warsaw), Romania (Bucharest), Russia (Moscow) and Ukraine (Kiev). Pleon already has an office in Hungary (Budapest).

Is there a particular region, US and globally, that is growing right now?
Our US clients are geographically dispersed, regardless of which office serves them. Globally, we are seeing increasing opportunities in EMEA as well as in China, Korea and India.

Is there a particular region, US and globally, that's shrinking?
No

How many practice areas do you have?
Four: consumer, technology, financial services and healthcare

Which ones are new?
None

Of those, which ones are part of the core strategy of the agency?
All of them are core to the agency.

Which practice areas have been phased out in the past year?
None

What practice areas showed the most growth?
Consumer and Financial Services

Which practice areas showed the least growth?
B2B, Technology, and Healthcare

What is the distribution of accounts across practice areas?
Our business is divided between B2C and B2B accounts, spread across four practice areas: consumer, technology, financial services and healthcare. About three-fourths of our business is in consumer, healthcare and financial services, and about one-fourth in technology.

What key account wins did you have in 2005?
Starz Entertainment Group, Orbitz, M-Systems, The History Channel, WorldSpace, DualCor Technologies

What key accounts did you lose in 2005?
There were no major account losses in 2005.

Did you expand any existing accounts into new domestic or international markets?
Our work with Avnet expanded in several countries, and we did an increasing amount of global work with several other clients.

Did any dormant clients start to spend with you again?
Not in 2005

What proportion of your clients is on a retainer?
The vast majority of Brodeur clients are on retainer.

Has this changed over the past year?
No

What was your 2005 US revenue?

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
We have met or exceeded our global expectations. In the US, we have seen growth in our consumer business, partly in consumer electronics with clients like Toshiba and Memorex, but also in the entertainment sector through such clients as The History Channel, Starz Entertainment Group and Discovery Communications. Our B2B growth with companies such as WorldSpace (global satellite radio) and M-Systems (flash storage technology) connects with consumers as well. We are also seeing strength in Europe, and growing opportunities in China and India. The Brodeur | Pleon Worldwide network formation last year clearly strengthened our EMEA presence, and the recent Brodeur India announcement is part of a process for expanding the Brodeur brand in Asia.

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