2005 Global Profile: Edelman

CEO: Richard Edelman

CEO: Richard Edelman

Headquarters location

New York, Chicago

Total US staff

1,075 (full-time)

Total non-US staff

758 (full-time)

Worldwide office locations

Wholly-owned: Atlanta, Austin, Chicago, Dallas, Los Angeles, Miami, New York, Portland, Sacramento, San Francisco, Seattle, Silicon Valley, Washington, DC, Montreal, Toronto, Buenos Aires, Mexico City, Sao Paulo, Amsterdam, Barcelona, Brussels, Dublin, Frankfurt, Hamburg, London, Madrid, Milan, Munich, Paris, Stockholm, Warsaw, Beijing, Guangzhou, Hong Kong, Kuala Lumpur, Melbourne, Seoul, Shanghai, Singapore, Sydney, and Taipei

Affiliated: Puerto Rico, Dominican Republic, Guatemala, Costa Rica, Panama, Ecuador, Colombia, Venezuela, Peru, Chile, Bolivia, Uruguay, Greece, Hungary, Finland, Denmark, Turkey, South Africa, Russia, Norway, Czech Republic & Slovakia, Iceland, Latvia, United Arab Emirates, Israel, Australia, New Zealand, Thailand, China, Indonesia, Philippines, and Vietnam

Proportion of the wholly- and majority-owned agencies that carry the parent's brand name


Global structure

Edelman operates a matrix structure that combines local country and regional knowledge with specialists experienced in specific practices and disciplines around the globe. The firm operates in primarily 17 practice areas globally: Corporate, Crisis & Issues Management, Corporate Social Responsibility, Design, Diversity Solutions, Editorial, Employee Engagement, Entertainment, Food, Financial Communications & IR, Government, Interactive, Litigation, Marketing, Public Affairs, Sports, and Travel & Tourism; and five global industries including: Consumer Brands, Health, Financial Services, Industrial and Technology.

In addition, Edelman's network includes four specialty firms: Blue (advertising), First&42nd (management consulting), StrategyOne (research), and BioScience Communications (medical education and publishing) to create PR-centric communications programs.

Key clients


Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

Asia Pacific, Europe, and the US.

Length and type of engagement

Client since 1994.

Management structure of the account

Global client relationship manager: Pam Talbot, US president & COO (based in Chicago)

How account is billed

Not supplied.

Size of budget

Not supplied.


Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly owned office of the firm

Pfizer is supported by wholly-owned offices located in US, Canada, Europe, and Australia. Each region enjoys Pfizer's preferred vendor status.

Length and type of engagement

Client since 1994.

Management structure of the account

Global client relationship manager: Nancy Turett, president of Edelman's global Health practice (based in New York)

How account is billed

Not supplied.

Size of budget

Not supplied.


Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

US, Canada, Europe, Asia Pacific, and Latin America

Length and type of engagement

Client since 1999.

Management structure of the account

Global client relationship manager: Susan Isenberg, General Manager, Health (Based in New York)

How account is billed

Not supplied.

Size of budget

Not supplied.

Global revenues change from one year ago (Global revenue is defined as revenue generated by all regions)

Increased 11.8%

International revenues change from one year ago (International revenue is defined as revenue generated by all regions excluding the region in which the agency is headquartered)

Increased 14.9%

Global staffing change from one year ago

Increased 10.60%

International staffing change from one year ago

Increased 12.0%

Performance in light of expectations and the sociopolitical factors affecting performance

Canada: The revenue decline in the Canadian market (revenue down 1.9%) followed two years of exceptional growth. In 2003, revenue jumped by 20% and was aided by crisis-related client work emanating from the SARS scare and the West Nile virus. The fees for managing those substantial crises were obviously a one-off.

Latin America: The modest decline in revenue (down 2.2%) was exceptional given the continued geo-political and economic uncertainty in key markets including Brazil and Argentina, where the economic situation remains tenuous.

Europe: Europe significantly exceeded expectations (up 17.8%) despite generally sub-par economic growth throughout the continent. This is a testament to the leadership team in the region, which has driven strong organic growth and complemented it with key acquisitions such as Britain's leading consumer consultancy, Jackie Cooper PR and Paris-based Public Affairs Consultancy, SCH Consultants. We recently opened a wholly-owned office in Warsaw, Poland, in June 2005.

Asia Pacific: Asia Pacific performed well above expectations (up 21.8%) led by Korea, where we are now the top firm in the market. We have continued to grow our business across all practices including corporate and reputation, consumer and investor relations. During the year we also announced a 50/50 joint venture partnership with R&P Management Communications Pvt. Ltd., India's leading reputation management company. This spring we also re-entered the Japanese market by opening a new wholly-owned office in Tokyo.

US: The US performed above expectations (up 10.3%). Our three main offices - New York, Chicago, and Washington, DC - all turned in solid performances. While our West Coast operations enjoyed an even healthier growth spurt, led by Los Angeles and Silicon Valley. Healthcare also continued to be a big contributor to growth as did public affairs.

Business won, or lost, in the past year due to a global PR consolidation by the client

Abbott, Inbev, Almond Board of CA, Ikaria, American Heart Association, Johnson & Johnson (Baby), AMD, McKesson, Avid, Merck (HIV Vaccine), Axa, Merck (HPV Vaccine), Borders Group, Merck (CSR), BP Innovene, Merck (Developing World Media Relations), Burger King, MedImmune, CDC (Bone), Merisant, Chevron, Microsoft Windows, ChinaNex, Myogen, Chiquita, Cattlemen's Beef Assoc., Church & Dwight, Neiman Marcus, Symbol, Nestle, CNBC Europe, Novartis, CNN, Peregrine, Cordis, PWC Logistics, De Beers, Sears, Diageo, TIBCO, DuPont, Tourism Auth of Thailand, Fannie Mae, True Value, Georgia-Pacific, TruServ, Getty Images, US Depart. of Comm., GlaxoSmith Kline, Wi-Fi Alliance, General Electric, Wrigley, Genitope, ZLB Behring - Vivaglobin

Our most significant client loss was KFC, which we resigned as reported in PRWeek.

Best-performing regions

US, Europe and Asia are all performing very well currently. Our quality program continues to help drive client retention and we continue to win new business consistently. We have had success extending current client relationships into new markets across our network. Also we have experienced low turnover at the agency's senior levels.

Under-performing regions

Latin America continues to experience inconsistent growth; however, Brazil shows signs of rebounding from recent weakness. Nevertheless, political and economic uncertainty still weighs on the region.

Region targeted for increased investment of resources this year

Edelman has been more active in expanding its global footprint and investing in specialty skills than the most of the rest of the industry. We have no plans to stray from this tack.

Region targeted for decreased investment of resources this year

We have no plans to decrease investment in any region.

New region/country under consideration to enter this year, and consideration of international acquisitions or organic growth

After several years of international investment, we have built an extensive footprint across the globe. Therefore, there are few regions in which we do not have a meaningful presence. However, we are always considering investments that make strategic and economic sense.

International pro bono activities and other ways the firm connects with the regions in which it operates

The Edelman US network and local offices have provided pro bono support for a range of national and international causes institutions, such as:

Edelman is a pro-bono partner to the Global Business Coalition's fight against AIDS. The firm has pledged a commitment of $250,000 worth of professional services in 2005.

Edelman created, designed, and produced the Save the Children's Tsunami Relief and Reconstruction 6-Month Progress Report as part of our pro-bono support of Save the Children's tsunami relief and reconstruction programs.

Edelman New York helps the World Economic Forum run their media relations for their annual gathering of world leaders from business, government, NGO, and academia in Davos, Switzerland.

Cure Autism Now, the largest private funding source for autism research, for which Edelman has generated substantial media exposure, including the Los Angeles Times, USA Today, Family Circle, and Wired as well as local TV network affiliates.

Partnering with America's Promise to advance its mission of aiding inner-city youth. Edelman helped Colin Powell found the organization in 1997. Edelman offices also provide internships to students, placing special emphasis at several offices on internships for inner-city youth.

Key changes made over the past couple of years that were driven by clients' changing needs

We have established a dedicated word-of-mouth practice, which brings together existing expertise in guerilla marketing, interactive solutions, and research to help clients address the challenges and opportunities posed by the growth in new media technologies.

We have integrated proprietary research into many of our programs for clients. We have also developed a steady stream of intellectual capital including the Trust Barometer, research about brand positioning in online forums and a white paper about the impact of the rise of blogs on media and corporate communications.

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