Headquarters location: Co-headquarters in New York and Chicago
Full-time US staff (as of June 1, 2004):
Full-time staff outside US (as of June 1, 2004):
Please list all office locations around the world, identifying which ones are affiliates, partnerships or wholly-owned.
Edelman?s wholly-owned offices are located in:
US: Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, Portland, Sacramento, San Francisco, Seattle, Silicon Valley, Washington, DC
Canada: Montreal, Toronto
Latin America: Buenos Aires, Mexico City and Sao Paulo
Europe: Amsterdam, Barcelona, Brussels, Dublin, Frankfurt, Hamburg, London, Madrid, Milan, Munich, Paris and Stockholm
Asia-Pacific: Beijing, Guangzhou, Hong Kong, Kuala Lumpur, Melbourne, Seoul, Shanghai, Singapore, Sydney and Taipei
Edelman?s network of affiliated companies are located in the following countries:
Latin America: Puerto Rico, Dominican Republic, Guatemala, Costa Rica, Panama, Ecuador, Columbia, Venezuela, Peru, Chile, Bolivia and Uruguay
Europe: Bulgaria, Greece, Hungry, Finland, Denmark, Turkey, South Africa, Russia, Norway, Czech Republic, Slovakia, Latvia, and Poland
Middle East: Gulf Cooperation Council (GCC), Levant, North Africa, Eastern Mediterranean and Pakistan, Israel, United Arab Emirates
Asia Pacific: Australia, New Zealand, Thailand, China, Indonesia, Philippines, India and Japan
Please describe how your agency is structured globally
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 11 practice areas globally: Corporate, crisis & issues management, diversified services, diversity solutions, food, employee engagement, financial communications & IR, interactive solutions, public affairs, sports and entertainment marketing 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.
Please list three of your biggest international accounts:
Regions serviced: Asia Pacific, Canada, Europe, Latin America and US.
Type of work: Edelman provides a wide-variety of support to Microsoft, including consumer, corporate communications, business-to-business, public affairs and corporate social responsibility
Client since: 1994
Management structure: Global client relationship manager: Pam Talbot, US president & COO (based in Chicago)
Billing: Not available
Budget size: Not available
Regions serviced: Pfizer is supported by wholly-owned offices located in US, Canada, Europe, and Asia Pacific. Each region enjoys Pfizer?s preferred vendor status.
Type of work: Edelman?s work spans across a range of Pfizer prescription and consumer products, as well as corporate and non-product specific work. The core health teams servicing the business range in size and typically include members from the traditional health and bioscience groups and other practice and service areas including consumer, corporate communications, public affairs, interactive, events & entertainment, and research.
Client since: 1994
Management structure: Global client relationship manager: Nancy Turett, president of Edelman?s global Health practice (based in New York)
Billing: Not available
Budget size: Not available
Regions serviced: US, Canada, Europe, Asia Pacific, Latin America
Type of work: Edelman?s work spans across a range of prescription product and non-product specific work, including, US agency of record for the investigational cholesterol treatment, Crestor; Seroquel, an atypical antipsychotic for the treatment of Schizophrenia; Toprol-XL, a beta blocker for hypertension, angina and heart failure; Atacand, an angiotension receptor blocker for hypertension; and the company?s investigational anticoagulant Exanta.
Client since: 1999
Management structure: Global client relationship manager: Susan Isenberg, general manager, health (based in New York)
Billing: Not available
Budget size: Not available
How have international revenues changed from one year ago? Revenue is defined as revenue generated by all regions excluding the region in which your agency is headquartered.
Edelman?s revenue increased by U.S.$200,000, which means it was basically flat
How has international staffing changed from one year ago?
Edelman?s full-time headcount decreased by 1%
Did performance meet or exceed expectations, or not? Please explain why. What external factors such as the war in Iraq, political issues, cultural issues, affected performance?
Canada: Calendar 2003 was a strong year for Canada (revenue up 20%+) with crisis work emanating from the SARS scare and West Nile virus plus continued strong Consumer practice growth. Edelman Canada?s performance was in sharp contrast to the current economic uncertainty, which has created a business environment characterized by hesitancy and stagnating revenue.
Latin America: Below expectations. Although the decline in revenue (down 23%) is accounted for by Edelman?s divesture of a firm in Rio de Janeiro. During 2003 Argentina experienced a total economic slump, Brazil only began to see some turnaround in the last quarter; Mexico fees now being negotiated downwards; our Miami office, which acts as our regional hub coordinating pan-Latin America programs, was slow. The good news is that there are signs that the recession is easing.
Europe: In Europe, performance was less than expected, due mainly to the economic challenges in some big markets like Germany and France. The Brussels market slowed down for the months before May as political attention turned to the enlargement process and the June European elections.
Asia Pacific: Strong organic growth (revenue up 20%) as new management, led by Alan VanderMolen (joined in February 2002) really drives our growth. We?ve had good success at moving business from the rest of the network into Asia, as well as winning regional programs and sending business from Asia into the rest of the network.
US: Up by about 2%. The big three offices ? NY, Chicago and Washington, DC -- all had solid performances. The West Coast continues to grow, from LA to Silicon Valley to San Francisco to Sacramento right up to Seattle and Portland. The region is now the anchor of several national and global clients.
We grew our latest client (top 10 to 15) relationships by doing excellent work. Our work has been outstanding. We?re more at the center of our client?s biggest issues, from obesity for a number of companies; to helping a number of associations tackle illegally downloading music.
Our consumer and health practices (the firm?s biggest) and public affairs all performed well. Technology grew strongly.
What business have you won, or lost, in the past year due to a global consolidation of PR business by the client? Please list:
AstraZeneca: Expanded from New York to London and Asia
GlaxoSmithKline: Asia, Chicago and the UK
Huawei: From China to the US and Europe
Microsoft: Expanded from the US to Canada, UK, France, Germany, Holland, Hong Kong, Korea, Singapore, China and Mexico
Pfizer: From New York to Chicago, Washington, DC, Canada, UK and throughout Europe
Samsung: Hong Kong, Singapore, Mexico, Canada and US
UPS: Global -- introduced the UPS new corporate brand identity to 360,000 employees and millions of customers around the world
What regions are performing best right now and why? What regions are under-performing?
In Europe, London, Spain and Holland were the best performers with healthcare, consumer and public affairs as the practice area highlights. We?ve won a number of regional programs including Chiquita. We recently doubled our UK operation with the acquisition for Jackie Cooper PR in the UK.
Canada is performing well ? continuing from a strong ?03
The US, which accounts for 66% of the firm?s global revenue, is growing well. We?ve experienced a robust first six months in ?04, with expanding clients? budgets and additional new business across the board ? consumer, health, public affairs, corporate, technology and financial communications & IR etc. We?re excited about the prospects of a strong ?04, after two years of basically flat revenue.
Calendar 2003 was a strong year for Canada for the reasons mentioned above.
What region do you plan to invest more resources in this year than you did one year ago and why? What regions are you decreasing investment in and why?
Europe: Eastern Europe and the new nations of the EU are becoming more important. Russia figures highly also. We think public affairs and healthcare will continue to provide growth as well.
In the past two months, we acquired Jackie Cooper Public Relations in the UK. The merger gave Edelman and JCPR combined billings of more than ?15 million in fees and approximately 160 staff. JCPR?s 2003 revenues of ?4.3 million are generated from leading consumer brands clients such as Allied Domecq, Mary Kate & Ashley, Wembley Stadium, Kerzner International Resorts and the Sherry Institute of Spain.
Asia Pacific: We?re looking closely at a number of markets.
US: We just announced the establishment of a new entertainment unit, and appointed Ferris Thompson, who was formerly United Talent Agency?s head of marketing, to run the unit.
Edelman has currently NO plans to decrease any investments.
What new region/country will you consider entering this year and why? Are you considering international acquisitions or organic growth?
Edelman has been one of firms that has made sizeable acquisitions in the last several years and continue to invest in:
New geographical markets and expanding current offices
Specialist firms with value-add skills to add to firm?s range of communications services
New insights by conducting primary research such as the Edelman Trust Barometer and Edelman?s Catalyst Marketing.
Please describe some of the pro bono activities that you undertake internationally, or other ways that your firm connects with the international regions in which you operate.
The Edelman US network currently provides pro bono support for a range of national institutions, such as:
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 in several offices on internships for inner-city youth.
Edelman?s local offices provide tangible pro bono support commensurate with the size of our operation in those markets. For instance:
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.
Atlanta staff provided strategic messaging counsel and directed outreach to engage the corporate community on behalf of the American Red Cross.
Chicago Software Association, Business Marketing Association and Nano Business Alliance are supported by the Chicago office.
Washington, DC provides the Columbia Shuttle Memorial Trust with strategic counsel, messages and materials development, and executed the announcement establishing the fund.
The public relations industry has recognized Edelman?s pro bono work, most recently the firm received an International Public Relations Association Golden World Award, and the ?Non-profit Team of the Year? Award from PRWeek for supporting three sisters to raise money for the victims of 9/11 by washing cars. Edelman helped ?Wash America? become a national campaign and raised $84,000, one wet dollar at a time.
Edelman Canada fully supports and lives the Edelman VMV believing whole-heartedly that Mutual Benefits will accrue to all parties in a positive relationship, business as well as community. To that end we provide financial support to the United Way Foundation in Toronto ($20,000) and Montreal ($10,000) as well as contributing time to staff-determined United Way member agencies equivalent to 25 man-days/year, such as: Health practice assisted with and participated in the MS Walk; CPA provided pro-bono media training for a couple of member agencies, Administration is providing assistance to Meals on Wheels and Youth Assisting Youth, Consumer is assisting the Toronto East Literacy Project and Montreal is to be determined.