Revenue surge justifies B-M practice structure

Burson-Marsteller’s fee income in Europe surged by 15 per cent last year, supporting the agency’s claim that its shift to a ’practice’ structure has led to greater productivity.

Burson-Marsteller’s fee income in Europe surged by 15 per cent last

year, supporting the agency’s claim that its shift to a ’practice’

structure has led to greater productivity.



Client fees for 1996 - the last year to see results broken down

according to country markets - reached pounds 50 million compared to

pounds 43.3 million in 1995. The Europe region accounted for around 35

per cent of B-M’s total global revenues of pounds 156 million, which

itself increased by eight per cent.



The UK led the field with a 25 per cent leap from pounds 10.6 million to

pounds 13.3 million, followed by Norway and Germany, which each netted

fees of just under pounds 4.3 million. Income generated from B-M’s

Prague office increased almost threefold to pounds 963,000.



The worst performers were Denmark and Poland, where fee income dropped

by pounds 31,000 and pounds 40,500 respectively.



Ferdinand de Bakker, president and chief executive for Europe, said the

results were a vindication of B-M’s decision last year to restructure

along practice lines. In particular, he said, the agency drew increased

business from existing clients because it was able to offer expert

advice regardless of geography.



’We immediately saw the results of the restructuring, which started to

take effect in the first quarter of 1996,’ he said. De Bakker added that

the biggest increase occurred in corporate work. Among the clients which

contributed to growth in 1996 were Unilever, McDonald’s and Zeneca.



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