As the fortunes of Los Angeles businesses go, so go the fortunes of the public relations agencies that represent them. And most of the county’s top shops reported healthy revenue growth in 1996.
Of the 21 agencies on last year’s List that reappear this year, 14 reported gains in fee income while four reported decreases. Three had the same fee income.
Century City-based Rogers & Cowan retained its No. 1 ranking from last year, reporting an L.A. County fee income increase of 12.9 percent, from $9.3 million in 1995 to $10.5 million in 1996.
In the No. 2 position was Hill and Knowlton Inc., which swapped places from last year with No. 5 Fleishman-Hillard. Hill and Knowlton posted a 24 percent fee income increase, up to $9.2 million in 1996 from $7.4 million in 1995. Fleishman-Hillard recorded a revenue drop of 21 percent compared to 1995, down $6.4 million from $8.1 million in 1995.
Notably absent from this year’s List is Pacific/West Communications Group Inc, which ranked No. 3 last year and was the biggest independently owned P.R. agency in the county. The Mid-Wilshire-based agency is currently involved in a lawsuit with the California Department of Transportation over billing practices. Pacific/West did not complete the Business Journal’s survey.
No. 13 Edelman Public Relations Worldwide was the biggest gainer on this year’s List, up from No. 24 in 1995. The L.A.-based agency posted county fee income of $2.8 million, up 75 percent from its 1995 revenues of $1.6 million.
George Drucker, executive vice president and general manager of the L.A. office, said his agency has found success by concentrating on acquiring public affairs, consumer products, technology and entertainment clients.
“The terrain in L.A. is very different from Chicago and New York we don’t have the mega, mega headquarters here,” Drucker said. “Our clients are what’s fueling the economy: the small and mid-sized startup companies.”
Porter/Novelli also leaped ahead on the List, up seven spots to land at No. 6 this year. The agency reported an 82 percent increase in its fee income, up $5.1 million in 1996 from $2.8 million in 1995.
There were four agencies new to the List: No. 15 Murphy O’Brien Communications, based in Beverly Hills; No. 22 GCI Los Angeles, based in L.A.; No. 24 Cohn & Wolfe, based in Century City; and No. 25 Pacific Visions Communications, based in L.A.
Karen Murphy, president of Murphy O’Brien, said this was the first year her agency submitted data to the List. She said her company had an “awesome” year, which she attributed to her agency’s focus on media relations for global travel and tourism clients.
“We’re very niche-oriented, but I really do think there’s a lot of business for everyone,” she said. “Business’ public relations budgets are back to where they were (before the recession) and sometimes they’ve expanded.”
Other agencies appearing on last year’s List but not on this year’s include Santa Monica-based Casey & Sayre Inc., whose 1996 revenues were insufficient to make top 25, according to senior associate Karen Diehl. Downtown L.A.-based Imada Wong Communications Group Inc. and West L.A.-based Laufer Associates both may have qualified but failed to submit their data by press time.
