2005 Agency Business Report: Carmichael Lynch Spong

Owned by Interpublic Group (part of the Independent Agencies group)

Owned by Interpublic Group (part of the Independent Agencies group)

Doug Spong, CEO

2004 revenue: $10,828,256

2003 revenue: TK

Up 33%

Number of offices: Four in the US: Minneapolis, New York, Chicago, Denver

US staff: As of March 1, 2005, CLS employs 51 professionals. This is an increase of 44% from January 1, 2004.

Staff turnover: 20%

Senior hires: Jill Schmidt, partner and chairwoman of the corporate practice, previously VP of corporate communications for International Multifoods; Kendra Calhoun, partner and chairwoman of the public affairs practice and healthcare industry group, formerly corporate VP of public relations, communications and marketing for Allina Hospitals and Clinics.

Senior departures: Julie Wohlford, senior partner, to spend time with family.

What region is growing? Most of CLS' 33% growth came from the Midwest and East Coast regions.

Practice areas: CLS has four practice areas: brand marketing, corporate, employee communications, and public affairs. Also, four industry group specialized areas: home and garden group, food and beverage, outdoor and leisure, and healthcare.

Which ones are new? The healthcare industry group is the newest industry group, led by 2004 hire Kendra Calhoun.

What areas were strong? Both brand marketing and corporate practices continued double-digit growth in 2004. In particular, the firm's home and garden industry group grew by nearly 20% and represents over half of the firm's total revenue.

Key account wins: 14 new clients, including Harley-Davidson Motoclothes, Hoover, National Marine Manufacturers Association, and Pentax cameras.

Key account losses: EAS nutritional supplements in Denver.

Proportion of clients on a retainer: CLS typically is compensated on a reconcilable monthly retainer. With the exception of two clients - one of which is hourly and the other is a fixed monthly retainer fee - agency fees are billed in a

How did revenues meet expectations? Year-end fee revenue exceeded the firm's fiscal goal by 18%.

Outlook: Carmichael Lynch Spong saw the addition of what managing partner Doug Spong refers to as "like-minded achievement addicts," with Kendra Calhoun joining to lead the firm's new practice, the healthcare industry group. According to Spong, "We also achieved our goal of strengthening our corporate practice with the addition of Jill Schmidt," who serves as partner and chair. In 2004, the firm more than doubled its goal of 15% growth.

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