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FOR IMMEDIATE RELEASE: Agencies fret over flat fee income Bob Geiger Star Tribune Published April 26, 2003 Business at Twin Cities ad agencies ranged from OK to dismal in 2002, but a lot depended on whose numbers you believe. Nationwide, ad agencies eked out a small rise in fee income last year, according to trade journal reports this month. In its annual agency income report this week, Advertising Age said nationwide fee income rose 0.6 percent in 2002, while Adweek estimated that 2002 agency income rose 1.6 percent in a report earlier this month. Regardless of which trade journal was closer to the reality, the industry narrowly averted a second consecutive decline in yearly agency fees after a decade of double-digit growth. The prevalence of estimated numbers by trade magazine editors was a sign of behind-the-scenes fretting at publicly owned ad agency holding companies, which declined to provide figures to Ad Age and Adweek. And in some cases, the publications came up with substantially differing estimates. That was the case with numbers for the two largest Twin Cities agencies. Adweek estimated that Minneapolis-based Campbell Mithun's 2002 ad billings, or client spending, rose 2 percent to $1.2 billion, resulting in fee income of $118 million, flat with the previous year. However, Ad Age estimated that Campbell Mithun's U.S. fee income fell 5.2 percent in 2002 to $95.5 million from $100.7 million in 2001. In the case of Minneapolis-based Fallon Worldwide, owned by Paris-based Publicis Groupe, Adweek estimated 2002 U.S. fees of $82 million, down 5.7 percent from 2001, and client spending of $550 million, down 4.7 percent. Ad Age editors estimated that Fallon generated $73.9 million in U.S. fees, an 11.3 percent decline, and had U.S. client spending of $800 million. And while Ad Age's estimated 2002 fees for Fallon are about $8 million less than Adweek's, Ad Age's estimated 2002 client spending was $250 million higher than the number for Fallon published by its rival. The dueling numbers caused some confusion about the relative ranking of the third and fourth largest Twin Cities Agencies. According to Ad Age figures, Carmichael Lynch edged out Martin/Williams Advertising for the No. 3 spot, which had been held by M/W for years. Ad Age estimated Carmichael Lynch's 2002 fee income at $34 million, up 2.3 percent, compared with an estimate of $30 million for M/W, up 5.3 percent. However, Adweek flip-flopped the rankings, based on estimates of $46 million in 2002 fees for M/W vs. $40 million for Carmichael. Adweek also gave M/W the No. 3 spot in client spending, with an estimate of $320 million last year compared with Carmichael's estimated $295 million. Other Ad Age estimates for 2002 included:
Edina ad agency Kerker has hired Jeanne Carpenter as director of public relations, starting in early May. Carpenter joined Bloomington firm Weber Shandwick seven years ago as senior vice president in charge of new business development. A former president of the Minnesota Advertising Federation, Carpenter replaces Gary Young as director of Kerker's PR department. Young left Kerker at the end of December to join Minneapolis agency Riley Hayes Advertising as head of the shop's Riley Hayes Young PR business unit. Bob Geiger is editor and publisher of the Geiger Report, 4924 Emerson Av. S., Minneapolis, MN 55409. Phone: 612-825-3217. E-mail: BGAE4924@aol.com. For more information, contact:
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