Gibbs & Soell: Agency Business Report 2010

As the firm enters its 40th year, Mallozzi is optimistic that both new business and organic growth are picking up.

Principals: Cos Mallozzi, CEO and chairman; Luke Lambert, president
Ownership: Independent
Offices: New York, Chicago, Raleigh, NC, and Zurich, Switzerland

Staff
Current headcount is 91, down about 10% from 2008. As part of the agency's succession planning, Luke Lambert, MD in New York, was promoted to president. Cos Mallozzi remains CEO and assumed the new title of chairman. SVP Jeff Altheide was promoted to lead growth strategy and innovation for the agency, and SVP Doug Hampel was named MD in Chicago.

Practice areas
Practice areas are advanced manufacturing and energy; agribusiness and food; consumer lifestyle; building solutions; professional services; and tech and general science. Digital and social media offerings increased. Professional financial services and consumer home business declined.

Accounts
The agency has 25 to 30 clients. It lost two (Delta Faucet and a law firm), and many clients cut budgets. Wins for 2009 included ERA Real Estate, Miele USA, Panasonic, and added business from client Novartis.

Financial performance
Revenue decreased approximately 12% to $16,888,152 globally and $16,420,326 in the US. Profit held steady. Mallozzi says relocation to reduce rental outlay in New York helped contain costs.

Analysis
As the firm enters its 40th year, Mallozzi is optimistic that both new business and organic growth are picking up.

"Q1 and Q2 were pretty dismal," he says. "By Q3 and Q4 we saw more new business and clients who had cut budgets were back at the planning table. Clients are definitely less panicked. They feel their employers have cut as far back as they can. They're looking at innovative programs and more creative approaches. I'm seeing reallocation, particularly into digital and social media."

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