MWW Group: Agency Business Report 2006

In 2005, MWW got a boost into the big league by landing a share of the hotly contested Sun business.

In 2005, MWW got a boost into the big league by landing a share of the hotly contested Sun business.

The win precipitated opening an office in San Francisco with a staff of 10, initially for the Sun account alone; but CEO Michael Kempner is bullish about that market, and aims to evolve it into a full-service operation.

Several people were hired from outside the industry to prominent posts at the firm, adding a touch of celebrity to its roster.

Kempner says that he strives to hire people with different life experiences, to better serve client needs. "[Our] culture allows people to be great," he adds.

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

Name of subsidiary companies:
MediaMixx (radio promotions and sponsorships), Financial Relations Board (investor relations/financial communications)

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

What is your current headcount, and how has it changed from this time last year?
218 vs. 196

What was the percentage of staff turnover?
12%; MWW boasted 88% staff retention in 2005

Did you make any senior hires in 2005 (VP and higher)?
US Chamber of Commerce lobbyist William Morley as SVP, Managing Director to head MWW Group's Washington, DC office, from the US Chamber of Commerce; Award-winning broadcast television producer

Leslie Linton
as Vice President to MWW Group's media relations team, from CNN; Former Deputy Chief of Staff for New Jersey Governor Richard J. Codey

Mark Matzen in MWW Group's National Public Affairs Practice. Matzen also served as New Jersey Assistant Commissioner of Transportation and Chief of Staff to NJ Congressman Rush Holt.

Successful Political Campaigner Tony Bawidamann as VP. Bawidamann brings more than 17 Years of experience managing political campaigns in New Jersey, Florida and throughout the United States to MWW Group, in addition to experience serving as Legislative Assistant to Several Florida Congressmen, Political Director of Florida House Democratic Caucus and Executive Director of South Carolina House Democratic Caucus. He was recently named a "Rising Star" in Politics by Campaigns and Elections Magazine; To head MWW Group's new San Francisco office, MWW brought in two executives with experience managing all aspects of corporate and executive communications for some of the most respected technology brands in the nation: Monica Sarkar, former director, corporate media relations at Hewlett-Packard (HP) as Vice President and Larry Yu, former manager, executive communications at Cisco Systems, Inc. as Vice President.

What senior staff have departed the firm?
Harvey Englander, SVP

Other senior management changes:
Don McIver was promoted to Chief Operating Officer from Senior Vice President, Management Services

How many offices do you have globally?
North America:
10 Full-Service offices; East Rutherford, NJ; New York; Chicago; Washington; Los Angeles; San Francisco; Seattle; Trenton, NJ; Irvine, CA; Dallas, TX

Europe:
London; Pan-European by end of 2006

What offices opened in 2005 or early 2006? (State when)?
Our San Francisco office opened in September 2005 and our London office opened in early 2006

Is there a particular region, US and globally, that is growing right now?
Our San Francisco office has seen tremendous growth in its first five months. All of MWW Group's offices nationwide have seen healthy growth in 2005, particularly our East Rutherford, NJ headquarters and New York City offices, with the addition of significant new business wins in 2005.

Is there a particular region, US and globally, that's shrinking?
No, all of our offices have been showing strong growth in 2005 and early 2006.

How many practice areas do you have?
Our practice areas include:
Consumer Lifestyle Marketing
Corporate Communications
Financial Communications
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
Fashion & Image Marketing
Entertainment
Radio Services & Promotions
New Media/Internet Marketing
Creative Services

Which ones are new?
Sports Marketing and Sponsorships
Fashion & Image Marketing
Entertainment
DialogueMedia (New Media/Internet Marketing)

Of those, which ones are part of the core strategy of the agency?
DialogueMedia (New Media/Internet Marketing)
Sports Marketing and Sponsorships

What practice areas showed the most growth?
Consumer Lifestyle Marketing, Corporate Communications, Public Affairs, Technology Marketing and Healthcare

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

What key account wins did you have in 2005?
Sun Microsystems
Bank of America
Sara Lee
Deloitte Consulting
Roche Diagnostics
Hain Celestial Group
Dassault Falcon Jet Corporation
Pfizer
City of Cape May Tourism Commission
VisitScotland
Capital Group

What key accounts did you lose in 2005?
Getty Images - change in marketing leadership Capital One - project successfully completed
Whitney Education Group - appropriations procured, project complete Blue Hippo - company funding didn't go forward
Amazing Savings - company declared bankruptcy Bobby Shriver for City Council - campaign successfully completed

Did you expand any existing accounts into new domestic or international markets?
Using our focus on strong client relationships to drive significant organic growth, MWW was able to gain an 8% increase in business from existing clients, including a 20% retainer increase from one of MWW Group's top clients and additional work from Nikon, McDonald's and the NJ Department of Health and Human Services.

What proportion of your clients are on a retainer?
70%

Has this changed over the past year?
It is approximately the same

What was your 2005 US revenue?
2005 US Revenue was $41,059,516

What was the % change over 2004 US revenue?
5%

>How did your performance, in terms of revenue and growth, meet expectations you had for the year?
MWW Group's performance in 2005 exceeded our expectations. In addition to celebrating our 19th consecutive year of significant revenue growth and posting both top-line (5%) and bottom-line (17%) increases, MWW won more than 80% of its new business pitches in 2005, winning more than 100 new clients with operating budgets of more than $15M, and exceeding our goal of adding at least five world-leading brands and winning 100% of our "must win" pitches. Using our focus on strong client relationships to drive significant organic growth (MWW Group was ranked #1 in the Holmes Report Agency Client Satisfaction Survey for the 3rd year in a row), MWW was able to gain an 8% increase in business from existing clients, including a 20% retainer increase respectively from one of MWW Group's top clients and additional work from Nikon, McDonald's and the NJ Department of Health and Human Services.

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