Makovsky & Company: Agency Business Report 2008

The firm saw both top- and bottom-line growth this past year, with 80% attributed to new business and 20% to organic growth. CEO Ken Makovsky says the firm's two biggest sectors are health, which he's hoping will be a $4 million practice this year, and financial and professional services.

Outlook
The firm saw both top- and bottom-line growth this past year, with 80% attributed to new business and 20% to organic growth. CEO Ken Makovsky says the firm's two biggest sectors are health, which he's hoping will be a $4 million practice this year, and financial and professional services. The firm, which saw a jump in the branding and visual practice area, is forecasting 25% growth in 2008.

"There's increasing recognition among clients that the Web site is a content-oriented communications technique; the first stop for [those] who we're trying to communicate with," says Makovsky.

Makovsky says his firm's success also comes from nurturing its talent. In addition to annual bonuses, incentive programs, and other HR offerings, the firm offers internal Mak Awards for the year's best campaigns, a continuing lifestyle committee, and a "We Achieve" program that encourages staffers to acknowledge the accomplishments of their peers.

"We have a lot of talent in the right spots, but [more] talent is always something we can use," says Makovsky.

Staff
Current headcount is 47 with 15% turnover. Total change since 2006 is more than 10%. Key hires included Tim Kane, EVP, and David Rosen, VP.

Regional performance
Makovsky works in extended areas as a founding member and partner in IPREX.

Practice areas
Five, including health (25% growth), financial and professional services (up 64%), tech and business services (flat), IR, and branding and visual communications (up 54%).

Accounts
Key wins include Arrow Electronics, Booz Allen Hamilton-SDT, Diageo, AMB Property Corp., Coldwell Banker, Johnson & Johnson, and Covidien. Clients that left include EMS, Pfizer, and Gene Logic. The client base is 85% on retainer.

Financial performance
Makovsky reported $9,241,000 in revenue - up 26% over 2006.

Key facts
Principal: Ken Makovsky, CEO
Ownership: Independent
Offices: New York

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