Despite severe social and economic problems last year saw a return to solid PR growth

Despite severe social and economic problems last year saw a return to

solid PR growth

The German Association of Public Relations Agencies (GPRA), which

represents 38 of the country’s top PR consultancies, reports an average

increase of seven per cent in fee income last year among the 32 of its

members who agreed to participate in research. The fee rise was matched

by a seven per cent jump in the number of clients to 1,050, showing that

much of the growth was driven by new business.

This is an encouraging performance, given the severe social and economic

problems faced by the country at present. Commerce and the general

population is confronted by the post-unification burden of high

taxation, as central government has poured money into the east in an

attempt to modernise its industries and institutions.

The cost has been unwelcome in other ways too. Unemployment now stands

at about the six million mark, a post-war high. Against this background,

some of the older, more established agencies have found the going tough.

‘Fees are the same as last year and clients are being squeezed, so

agencies are looking for new kinds of revenue,’ says Leipziger and

Partner owner Jurg Leipziger.

But for many other agencies, as the GPRA’s research flags up, last year

saw a return to solid growth. That pattern seems likely to continue.

Some agencies are bullishly predicting growth of about 10 per cent for

1996, with some specialist agencies forecasting up to double that


One of these is Wiesbaden-based hi-tech specialist Fink and Fuchs, a

member of the Euro Plus network. ‘The need for PR services has grown and

grown and grown,’ says managing partner Stephan Fink. ‘Clients are

starting to have broader needs like events and customer publications.

The computer industry certainly knows the worth of PR.’

New clients at Fink and Fuchs include Tandem Computers and Dell

Computer. Last year it also picked up BT, for which it will work in the

run-up to liberalisation of the German telecoms industry on 1 January


Another area of growth is crisis management. Shandwick recently held on

to its account (after a review) working for the central marketing

organisation of the German food industry. Its brief includes the

promotion of German beef at a time of plunging sales triggered by the

BSE scare.

According to Hering Schuppener GCI managing director Ralf Hering, the

entertainment and media sector is also pretty vibrant. Hering cites the

commitment of his client Warner Bros to Germany.

‘This is a market which is more and more concentrating into specialised

services,’ says Hering. ‘The big full-service agencies are getting into

trouble. But the smaller agencies that are concentrating on just two or

three sectors are mainly doing well.’

However, with both consumer and business confidence still shaky, many

clients are retaining a tight hold on their purse strings. There has

been a trend towards shorter agency contracts and more project work.

At the beginning of this month Manning Selvage & Lee acquired medium-

sized German agency Backhaus Togotzes and merged it with its existing

German operation. The new entity, known as Backhaus Togotzes - MSL, has

24 staff.

‘Last year we were pitching for accounts such as Expo Hanover and we

were told that although our concepts were good we were too small,’ says

BT - MSL director Erica Backhaus.

Other interesting changes in the industry include the recent decision of

Dieter Schulze van Loon, chief executive of Euro RSCG International

Communications in Germany (which owns leading agencies ABC and IPR&O) to

stand down. Head of Euro RSCG Germany Andreas Danyliuk is temporarily

filling the role of PR operations chief until a replacement is found.

High staff costs in Germany continue to be a problem, but there remains

plenty of optimism regarding international opportunities. ‘The

tremendous investment of German industry into eastern Europe will give

German PRs the chance to be lead agencies going into the east,’ says



Euro Consultancies: Germany (part one)


Rank  Company                    Fee income (pounds)      Location

                                   95           94

 1    Euro RSCG                13,650,000   12,547,000    Hamburg

 2    Khotes & Klewes          10,213,000      866,300    Dusseldorf

 3    Leipziger & Prtnr         8,700,000    8,900,000    Frankfurt

 4    ABC                       3,680,588    4,449,194    Dusseldorf

 5    Daniel J Edelman          3,541,486            *    Frankfurt

 6    B-M Germany               3,488,000    3,235,000    Frankfurt

 7    Thielenhaus & Prtnr       3,200,000    2,600,000    Wuppertal

 8    Trimedia Comms            3,200,000            *    Frankfurt

 9    Shandwick Germany         2,724,000            *    Bonn

10    HF&P                      2,584,000    2,336,000    Dusseldorf

11    MPC                       2,489,138            *    Munich

12    Charles Barker/CBCC       2,489,138      837,256    Frankfurt

13    Ketchum                   2,129,000    1,675,000    Munich

14    Ursula Lucas-Bachert      1,771,814    1,945,091    Frankfurt

15    Ferck Euro-PR             1,650,000    1,570,000    Frankfurt

16    Medical Relations         1,481,053    1,198,199    Langenfeld

17    WBPR                      1,400,000    1,400,000    Munich

18    Publipress                1,400,000    1,100,000    Munich

19    GCI Germany               1,381,000      902,713    Dusseldorf

20    Fleishman-Hillard         1,356,722    1,092,398    Frankfurt

21    Public Relations Prtnrs   1,330,000      970,000    Kronberg

22    PR bonn                   1,225,000    1,200,000    Bonn

23    Kochs & Kochs             1,118,000    1,120,000    Cologne

24    HBI Helga Bailey          1,100,000      900,000    Munich

25    Key Communications        1,000,000            *    Paris

26    Fink & Fuchs                952,000      850,000    Wiesbaden

27    APR/Wilkens                 950,000      700,000    Hamburg

28    Text 100                    940,000      857,000    Munich

29    Manning Selvage & Lee       823,490      727,000    Frankfurt

30    Klinksiek & Klinksiek       636,000      573,000    Frankfurt

* Figures not available. 1 CBIC abbreviation for Charles Barker

International Connnections. PR Week 1995 top ten agencies Marketing

Communication Organisation and Master Media did not submit figures iin

time for publication



Euro Consultancies: Germany (part two)


Rank  Company                       Status

 1    Euro RSCG                     Euro RSCG subsidiary

 2    Khotes & Klewes               Comms International

 3    Leipziger & Prtnr             Independent

 4    ABC                           Euro RSCG subsidiary

 5    Daniel J Edelman              Edelman subs

 6    B-M Germany                   B-M subsidiary

 7    Thielenhaus & Prtnr           Independent

 8    Trimedia Comms                Trimedia subsidiary

 9    Shandwick Germany             Shandwick subsidiary

10    HF&P                          Independent

11    MPC                           Independent

12    Charles Barker/CBCC           CBIC1 member

13    Ketchum                       Ketchum subsidiary

14    Ursula Lucas-Bachert          Worldcom member

15    Ferck Euro-PR                 Grayling assoc

16    Medical Relations             Independent

17    WBPR                          Pinnacle member

18    Publipress                    Independent

19    GCI Germany                   GCI Europe subsidiary

20    Fleishman-Hillard             F-H subsidiary

21    Public Relations Prtnrs       Pinnacle member

22    PR bonn                       Independent

23    Kochs & Kochs                 Med Grp Int. member

24    HBI Helga Bailey              Globalink member

25    Key Communications            Trimedia/Key affiliate

26    Fink & Fuchs                  Euro Plus member

27    APR/Wilkens                   Wilkens/Intl member

28    Text 100                      Text 100 subsidiary

29    Manning Selvage & Lee         MS&L subsidiary

30    Klinksiek & Klinksiek         Shire Hall Int member

* Figures not available. 1 CBIC abbreviation for Charles Barker

International Connnections. PR Week 1995 top ten agencies Marketing

Communication Organisation and Master Media did not submit figures iin

time for publication


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in