OutCast Communications: Agency Business Report 2008

Chosen as PRWeek's 2008 Midsize Agency of the Year, OutCast has built a client roster of companies that are on the cusp of trends and innovations in the technology sector, such as Facebook and Mozilla.

Outlook
Chosen as PRWeek's 2008 Midsize Agency of the Year, OutCast has built a client roster of companies that are on the cusp of trends and innovations in the technology sector, such as Facebook and Mozilla.

"In 2008 we are continuing to look for clients who are leading and disrupting their respective industries," says co-president Caryn Marooney.

The agency's overall objective is to develop more long-term clients like Yahoo, VMWare, and salesforce.com that evolve from industry disrupters to industry leaders, she adds.

The agency's growth in the consumer tech sector will also assist it in recruiting
top talent interested in working with such popular brands as Facebook.

"We've added more gadgets and more consumer, and we're looking for people who are interested in playing in those areas," says Marooney.

Staff

OutCast characterized 2007 turnover as "typical" for a midsize agency.

The agency reported that 4% of its staff remains on-board after eight years with the firm, 7% after four years, and 13% after three years.

There were no senior hires in 2007, but Julia Blystone and Tim Turpin, both VPs, departed the agency.

Practice areas

OutCast does not distinguish practice areas, but specializes in tech clients. Within that category, the agency represents entities in hardware, software, consumer Internet, clean tech, and consumer-gadgets sectors.

Financial performance
Revenue hit $11,704,154, a 16% in-crease over 2006, with a 2007 global profit margin of 25%.

Top-line growth was 19% over the previous fiscal year. Bottom-line expenses increased 12% and wages and salaries rose 15%. Bottom-line profit margins increased 7%.

In addition, new business increased 65% over 2006 and it accounted for 16% of revenue.

Revenue growth exceeded the goals set by OutCast's leadership team by 7%.

Accounts
OutCast added 17 clients for both project and ongoing services. The agency won 81% of the business it pitched.

New accounts for 2007 included Amazon Digital, Cisco, Clinique, Facebook, Mozilla, Nickelodeon, Nokia, and Xerox.

The agency declined to disclose which clients it parted ways with last year, but states, "We chose to retire a handful of clients for staffing reasons."

OutCast does not bill on retainer.

Key facts

Principals: Margit Wennmachers (l) and Caryn Marooney, co-presidents

Ownership: Next Fifteen

Offices:
Two in the US - San Francisco and New York
Even with that philosophy, enterprise accounts like VMWare and EMC continue to be a large part of the agency's business and its evolving reputation as a dynamic tech agency.

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