Offices: Minneapolis and New York
Revenue: $17.8 million
Padilla Speer Beardsley's commitment to providing more well-rounded services meant letting some clients go.
“We parted ways with clients that weren't in a position to take advantage of the services we've grown over the past few years,” says CEO and chair Lynn Casey, referring to the firm's research, digital, and creative practices.
The exodus occurred over several months and consisted of b-to-b clients.
“In the short term, PR firms that focus on core competencies such as strategic media relations seem to be doing fine,” she says. “Long term, providing the most value to clients as well as maintaining relevancy really demands that PR firms at least consider how they will provide a fuller offering.”
Jefferson Lines, which operates transit in a 13-state region from Minnesota to Texas, is an example of a new client for which Padilla provided an integrated marcomms campaign. The initiative's approach was designed to draw in younger riders.
As clients continue to expect a multiplatform approach to outreach, Casey realizes that can be done without purchasing an advertising or digital firm.
“We could handpick people from digital firms, ad agencies, and design firms who would be a cultural fit versus acquiring or merging with one of those firms and then trying to blend cultures,” she explains.
One such hire was Dave Schad, a 20-year veteran of several Minneapolis ad agencies, who will lead Padilla's 16-person creative group as executive creative director. Greg Tarmin, who had been with American Express, MSLGroup, and Cohn & Wolfe, was hired as MD in New York.
In 2011, Padilla posted US revenue of $17,834,808, up 4.5% from last year. Growth was 18% new business and 82% organic.
Consumer and corporate/investor communications was a practice that had solid growth. For 2012, the firm wants to work on ramping up its manufacturing practice, which dropped 8% last year for a variety of reasons, including a new hire that was unable to build traction in the area. Despite this, the firm plans to redouble efforts for this sector as it foresees more manufacturing opportunities coming back to the US.
Casey is hopeful that Curtis Smith, the firm's new business development and marketing director, will be able to give that practice area the help it needs.