The Council of PR Firms' first ranking of agency income didn't deliver any surprises. Burson-Marsteller held onto to its No. 1 status by inching its worldwide revenue above the $258 million mark. Next were WPP-owned Hill & Knowlton ($206 million) and Omnicom-owned Porter Novelli International ($183 million).
In total, eight firms had income above the $100 million mark, but the ranking also underscores some robust, new growth leaders - the survey's real punch.
This bodes well for the profession and serves as a kind of manifesto for further growth in a field where second-tier firms continue to keep the larger agencies - the Edelmans and BMs of the world - in an eminently competitive mode. While the top-10 were the usuals, growth leaders include some younger brands, such as Weber Public Relations Worldwide, a network partially run under the direction of Larry Weber, a guru of technology deals.
The growth leader list starts with No. 1 contender BSMG Worldwide, whose revenue grew by 84.8 percent, ballooning from $70.7 million to $130.7 million, a jump the firm's President Jack Leslie links to in-house growth in the practice areas of consumer marketing, healthcare, technology and financial services and some smart acquisitions. (Its high-profile clients include Hewlett-Packard and Merck.)
Last year, BSMG brought into its folds Brussels-based Adamson Associates and The Financial Relations Board, adding about $30 million in income to its existing operations with the two buys. Indeed, with the rest of the business world - the SEC and Wall Street in the lead - examining the global M&A climate, the PR industry was churning out similar deals.
Other key acquisitions last year include Ogilvy's impressive acquisition of Alexander Communications, a media relations trail blazer in the technology corridor. No. 2 growth leader Ogilvy Public Relations Worldwide boasted revenue growth of 40.9 percent, from $55.3 million to $77.9 million.
Ranked three through 10, in that order, are Schwartz Communications, Weber, Earle Palmer Brown, Cohn & Wolfe, Chandler Chicco Agency, Cramer-Krasselt, Publicis Dialog and Ketchum. (In the March 29 issue, PR NEWS will feature a Q&A with Publicis Dialog President and CEO Andy Hopson.)
Predictions are that M&As will continue to expand agency revenue this year as well (Ketchum began the year by acquiring Sheppard Associates), with even vendors joining the mix. Medialink just acquired The Delahaye Group, a media analysis growing in leaps and bounds on the brand side.
But depending on which side you're on, M&As can be a frightening prospect, with the largest of firms looking to round out their services by swallowing up mid-sized operations.
"They become targets of people like ourselves," says Leslie. BSMG, for instance, is looking to "fill out" its global network in the largest markets accounting for 75 percent of its business.
The firm already has overseas offices, albeit some very small, in London, Frankfurt and Hamburg, Brussels, Beijing, Hong Kong, Tokyo, Strasbourg and Geneva. In the U.S., BSMG offices span the continent, including Omaha.
(Council of PR Firms, 877-PRFIRMS, BSMG, 212/445-8000; Weber, 617/821-2937)
| Top 10 Council of PR 1998 Income Ranking | |
| Burson-Marsteller | $258.4 million |
| Hill & Knowlton | $206 million |
| Porter Novelli | $183 million |
| Shandwick | $170.3 million |
| Edelman | $161.3 million |
| Fleishman-Hillard | $160.6 million |
| BSMG | $130.7 million |
| Ketchum | $125.2 million |
| Weber | $83.5 million |
| GCI Group | $79.6 million |
| Weber's Completed Acquisitions in 1998 | |||
| Date | Company | Location | Practice/ Specialty |
| 1/98 | Neva Group, merged into Weber | Cambridge, Mass. | Technology |
| 3/98 | Ryan McGinn, renamed Weber/Ryan McGinn | Washington, D.C. | Public Affairs |
| 3/98 | B&L, renamed B&L/Ludgate | Frankfurt | Financial/ IR |
| 5/98 | Marketing Directions, merged into Ludgate's office | Hong Kong | Technology |
| 6/98 | PR Bonn Public Relations | Bonn, Berlin | Consumer/ Germany |
| 8/98 | Julie Davis Associates, Interpublic-owned agency merged into Weber | Atlanta | Consumer |
| Weber PR was one of the growth leaders in the Council of PR Firms' income 1999 ranking for 1998 revenue. | |||
| 1999 Growth Leaders | '97/'98 Revenue (in millions) | % Change | |
| 1. | BSMG Worldwide | $70.7/$130.7 | 84.8% |
| 2. | Ogilvy Public Relations Worldwide | $55.3/$77.9 | 40.9% |
| 3. | Schwartz Communications | $10.9/$15.0 | 37.4% |
| 4. | Weber Public Relations Worldwide | $61.0/$83.6 | 36.8% |
| 5. | Earle Palmer Brown | $6.5/$8.8 | 35.7% |
| 6. | Cohn & Wolfe | $30.2/$40.5 | 34.1% |
| 7. | Chandler Chicco Agency | $6.9/$9.2 | 34.0% |
| 8. | Cramer-Krasselt | $6.1/$8.2 | 33.4% |
| 9. | Publicis Dialog | $8.7/$11.3 | 30.9% |
| 10. | Ketchum | $96.6/$125.2 | 29.6% |