2005 Agency Business Report: <strong>Ketchum</strong>

Owned by Omnicom (part of Diversified Agency Services group)

Owned by Omnicom (part of Diversified Agency Services group)

Ray Kotcher, CEO

Number of offices: Eight in the US; 23 worldwide.

Staff numbers and turnover: Not supplied

Senior hires: Al Jackson, former VP of political affairs at the American Hospital Association, as SVP, public affairs; Paul Baverstock, former director of strategic communications for the Conservative Party, as managing director of the UK corporate practice; Mark Owens of Davie-Brown Entertainment as MD of Ketchum Entertainment Marketing.

Senior management changes: Susan Molinari became president of Ketchum public affairs, continuing her role as chairman and CEO of The Washington Group. The global corporate practice was reshuffled, with Rob Flaherty becoming MD, and John Weckenmann becoming North American director.

Senior departures: Chris Atkins, partner/director, global corporate practice; Michael O'Brien, SVP/associate director, global brand marketing practice; Gary Stromberg, CEO, Stromberg Consulting; David Weiskopf, SVP/associate director, Ketchum West.

Office consolidations: Atlanta and Dallas operations merged to form Ketchum South; Los Angeles and San Francisco became Ketchum West; and Chicago and Pittsburgh became Ketchum Midwest.

Number of practice areas: Five global practices - brand marketing; corporate; food and nutrition; healthcare, technology. Specialist areas include The Washington Group (lobbying and public affairs), Ketchum Entertainment Marketing, Ketchum Sports Network, and Stromberg Consulting (change management and workplace communications).

Which areas are new? Ketchum Professional Writers Group; Women 25to54.

What areas were strong? Corporate communications, brand and healthcare.

Distribution of accounts across practice areas: More than 40% of the agency's income comes from multinational, multi-practice accounts.

Key account wins: Include Aetna; Best Buy Geek Squad; ConAgra; Genworth Financial; GlaxoSmithKline; HSBC/Household International; Ortho-McNeil (Topamax); World Economic Forum's Global Institute for Partnership and Governance

Incremental new business: Includes Bank One/Chase Card Services; FedEx; The Home Depot; Merck; Procter & Gamble.

Key account loses: Include Genentech (Avastin).

Outlook: Currently under scrutiny for its work with the Department of Education, Ketchum is staying focused on the future by looking to launch client initiatives in creativity and measurement, and to further its previously stated commitment to first-class media relations. CEO Ray Kotcher says, "2004 was a record year. We won more new business than ever before." He added that all financial metrics, including profitability, had improved.

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