2006 Agency Business Report: GCI Group

Last year, former GCI President and CEO Bob Feldman predicted growth in both the firm’s consumer and tech practices, and that prediction became reality, particularly in terms of digital entertainment industry efforts.

Last year, former GCI President and CEO Bob Feldman predicted growth in both the firm’s consumer and tech practices, and that prediction became reality, particularly in terms of digital entertainment industry efforts.

"Almost overnight, we went from being a non-player to being asignificant force," says GCI's Worldwide President & CEO Jeff Hunt.

Expectations for growth in healthcare, however, fell short, though the firm did add several new clients in that sector. Hunt says GCI will continue to focus on bolstering its healthcare business in 2006, as well as look to expand into the financial services and automotive sectors.

The agency also plans to reinvigorate its pres- ence in the Bay Area, and continue to emphasize the development of new measurement and creative techniques. In 2005, GCI launched a client-satisfaction program; this year, Hunt said GCI intends to make a "significant investment" to train and develop its own talent.

Name of parent division/company (enter both where applicable)
WPP

Has your ownership status changed in the past year?
GCI was acquired in 2005 by WPP.

Name of global CEO and US CEO (or most senior equivalent)
Jeff Hunt is GCI's Worldwide President & CEO

Name of person, if any, the most senior person named above reports to
Jeff reports to Donna Imperato, who was named Chair of both GCI and Cohn & Wolfe following the WPP acquisition of GCI.

What is your current headcount, and how has it changed from this time last year?
Our NA headcount has not seen any significant change in the past year.

Did you make any senior hires in 2005 (VP and higher)? What senior staff have departed the firm?
Jennifer Cohan
, president, GCI NY was replaced by Stephanie Marchesi from MS&L
Dan Relton, SVP, Human Resources left and was replaced by Stephanie Lapham Howley of GCI
Walter Jennings, SVP, Corporate Communications. Ray Kerins left GCI and a search is underway for his replacement
Bob Feldman, President and CEO GCI replaced by Jeff Hunt
Vish Ganpati, Corporate Strategy
Jeff Angel, President GCI Toronto replaced by Marion MacKenzie, Nortel

How many offices do you have globally?
North America
Atlanta – GCI Group Wholly Owned
Austin – GCI Read Poland Wholly Owned
Canada – GCI Toronto Wholly Owned
Chicago – GCI Group Wholly Owned
Houston – GCI Read Poland Wholly Owned
Los Angeles – GCI Group Wholly Owned
New York – GCI Group Wholly Owned
San Francisco - GCI Group Wholly Owned
Latin America
Argentina – Consultores Del Plata Affiliate
Brazil – Gaspar & Associados Wholly Owned
Chile – GCI Strategies Wholly Owned
Colombia – Strategic PR Group Affiliate
Ecuador – GCI Ecuador-Guayaquill Wholly Owned
Mexico – GCI Mexico Wholly Owned
Peru – GCG Affiliate
Puerto Rico – Wing Latino Group Wholly Owned
Venezuela–Fischer Grey Affiliate
Asia–Pacific
Australia – Blackie McDonald (Melbourne) Affiliate
Blackie McDonald (Sydney)
India – GCI India (Mumbai) Wholly Owned
GCI India (Delhi) Affiliate
GCI India (Bangalore) Affiliate
GCI India (Ahmedabad)
Japan – GCI Sun Pub
Korea – Shinhwa Communications
Malaysia – GCI Malaysia Wholly Owned
New Zealand Wholly Owned
Singapore–Blackie McDonald Affiliate
Europe
Belgium – GCI Brussels
Bulgaria - M3 Communications Group Partner Office
Croatia – GCI Zagreb Wholly Owned
Denmark – GCI Mannov (Aarhus) Wholly Owned
GCI Mannov (Copenhagen)
Estonia – Havera AS Affiliate
Finland – GCI Finland Wholly Owned
France – GCI Groupe Grey, Paris Wholly Owned
Germany – GCI Berlin Wholly Owned
– GCI Hering Schuppener (Dusseldorf)
– GCI Hering Schuppener (Frankfurt)
GCI Healthcare (Hamburg)
Greece – GCI Athens
Hungary – GCI Budapest Wholly Owned
Iceland - GCI Iceland Affiliate
Ireland - Carr Communications
Italy - PRP Pepe, Rossi e Partner Affiliate
Latvia – Havera PR Affiliate
Lithuania – Inorek & Grey UAB Affiliate/owned
Netherlands – GCI Holland Wholly Owned
Norway – GCI Monsen Wholly Owned
Poland – GCI Warsaw Wholly Owned
Portugal – YoungNetwork Affiliate
Romania – DC Communications Affiliate
Russia – APCO Moscow Partner Office
Slovakia - Media In Affiliate
Slovenia – GCI Ljubljana Wholly Owned
Spain – GCI Agora (Madrid) Wholly Owned
– GCI Agora (Barcelona) Wholly Owned
Sweden – GCI Sweden (Stockholm) Wholly Owned
– GCI Sweeden (Gothenburg)
– GCI Sweeden (Malmoe)
Switzerland – Musqueteers AG Wholly Owned
Turkey – GCI Istanbul Wholly Owned
Ukraine – GCI Kiev
United Kingdom - GCI London/GCI Healthcare
Africa
Nigeria – The Quadrant Company Affiliate
South Africa – GCI South Africa Partly Owned
Middle East
Lebanon – Grey Beruit Wholly Owned
Israel – Stern-Ariely PR Affiliate
United Arab Emirates – Headline PR Affiliate

Is there a particular region, US and globally, that is growing right now?
We are seeing strong growth potential across all our offices in North America. We are particularly proud of the growth of our California and Texas operations which late last year were bundled under a GCI West umbrella under Jake Drake.. We continue to grow our strength in the area of digital entertainment, an area that Jake committed to developing -- we expect that to flourish more in the coming year. We also shifted Bill Marks role from president GCI Atlanta to head of our Technology practice which sets us up for renewed growth in this space. Our North America leadership team has never been stronger with new leadership in Atlanta (Donna Fleishman,) in NY (Stephanie Marchesi) and in Toronto (Marion Mackenzie). In Europe, we are ranked the best agency in Denmark and with Steffen Luders now at the helm of our GCI Europe network, we are going to see more widespread growth throughout the region.

How many practice areas do you have?
We have five key practice areas: Healthcare, Consumer Marketing, Corporate/Media Relations, Public Affairs and Technology

Of those, which ones are part of the core strategy of the agency?
All our practices play a key role in our corporate strategy.

What practice areas showed the most growth?
Our healthcare practice has maintained its best in class reputation, literally sweeping the industry awards for their work on behalf of Medtronic and attracting such new clients as Genentech. Our consumer marketing practice continues to excel on behalf of long term clients such as Starbucks, IHG, and RadioShack as well as for newcomers such as Lowes, Remy Martin, Whole Foods and Paramount. In the tech space, we maintain a thriving relationship with Dell and with newcomer Vignette.

Which practice areas showed the least growth?
We had a steady growth across all practices.

What is the distribution of accounts across practice areas?
Approximately:
40% healthcare
25% Consumer
20% Corporate
15% Technology

What key account wins did you have in 2005?
Cephalon
Genentech
Whole Foods
Lowes
Remy Martin
Paramount
Vignette
Sony Pictures Home Entertainment
Major League Baseball
Listerine
Endo
Continental

What key accounts did you lose in 2005?
We have retained all our top 20 clients.

What proportion of your clients are on a retainer? Confidential

Has this changed over the past year?
No

What was your 2005 US revenue?
We cannot share specific financial results.

Did you experience top-line or bottom-line growth in the past year?
We met both our top and bottom line growth goals.

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