EDELMAN, APCO, MAKOVSKY, DUKAS GAIN IN N.Y.

By Jack O'Dwyer

March 30, 2009

Edelman, APCO Worldwide, Makovsky + Co. and Dukas PR soared in New York in 2008, but about half of the 54 firms on the O'Dwyer rankings list were either level with 2007 or down.

Only three New York firms in the top 25 declined to provide information and only five among the next 29. Three dropped out because they were acquired.

Edelman boosted its New York total 29% by adding $21 million in fees for its new total of $93.2M. The growth rate was faster than the firm's overall growth rate, which was $13.1% (for a total of $449.2M).

CEO Richard Edelman said that more and more clients are coordinating U.S. and worldwide accounts out of New York.

Clients are also turning to PR for creative ideas that can be used in advertising and marketing campaigns, he said.

"We're taking business from the ad agencies," he said. We have supplied some good creative ideas and clients give them to their ad agencies to carry out."

Traditional press, as well as the new "social media," are being used to promote client causes and products, he said. Corporate social responsibility as well as healthcare and PA programs are going strong, he added.

Edelman, after 20 years in 100,000 sq. ft. at 1500 Broadway at Times Square, will move in the fall to 127,000 sq. ft. at 420 Hudson St., which is just north of the Holland Tunnel. It is about two blocks north of 75 Varick where Porter Novelli moved in 2007. The building is now also called Hudson Square.

APCO, MAKOVSKY, DUKAS GAIN

Makovsky + Co., following a 32% gain last year, added another 19% in 2008 to a total of $11M. It was the second biggest gainer among the top 10 after Edelman.

Chairman Ken Makovsky said that healthcare, financial and professional services, and technology and business services gained 20% or close to that while IR declined.
Companies feel there is less of an audience for financial news because of the stock market downturn, he noted.

Marketing, corporate image and issue-oriented and crisis-oriented PR are in strong demand, he said.

A major reason for growth, he continued, was integrating traditional and digital media strategy, making sure that client programs and aims are reflected in the company's website. "Reporters are going first these days to websites and everything must be in sync there," he said. Makovsky + Co. also added key personnel who are specialists in digital and social media, he added.

Richard Dukas, CEO of Dukas PR, asked about his firm's 47.7% gain to $3.4M after a 90% gain in 2007, said it was mostly due to placements obtained in traditional media and especially broadcast.

He counted 35 appearances for clients on major business programs (CNN, Fox, CNBC, etc.) in the previous 24 days. The firm also promotes clients via "social media" but Dukas says clients are mostly looking for "high quality media placements." His slogan is, "It's the media that matter."

Dukas PR pros also build media relationships via in-person contacts at lunches and other opportunities.

APCO Worldwide grew 63% to $6.6M after a 14.6% gain in 2007. Total fees of the firm grew 15.3% to $112.4 million.

Based in Washington, D.C., APCO's practice includes 20 different types of services from antitrust and competition counseling to restructuring communication and strategic philanthropy.

About $60M of its fees are U.S.-based with more than $50M in fees derived from abroad.