The enormous growth was derived from more than 100 new accounts -- 36 percent from existing clients. Although Grey Worldwide has traditionally been considered a consumer goods shop, the agency picked up 20 percent of its new business from retail clients (among them Club Bertelsmann), 35 percent from financial ser-vices clients (such as Planet Home), 40 percent from high tech clients (Unisys, Oracle) and corporate accounts E.ON (energy) and Thyssen Krupp.
Just last month, Grey announced the win of premium-priced dairy marketer Weihenstephan from incumbent JvM am Main, and the agency has now picked up Seagram's deodorant brand Mum, an account that had been dormant for more than two years.
The results were achieved without any acqui-sitions. "This is the best result we have ever accomplished," says Bernd M. Michael, chairman of Grey Global Group Middle Europe. "Two factors are responsible for it: a change in the(age) generation of our management, and the setting up of independent companies that were previously departments of our agency."
Pressed about the agency's profitability, Mr. Michael claims the profit margin on billings of $809 million was more than 2.5 percent.
On Jan. 1, Grey Global Group will set up a new customer relationship marketing agency, branded Dynamic CRM. It'll be headquartered in Hamburg and headed by Martin Nitsche.
Grey Global Group Germany is the second biggest agency in Germany after BBDO Worldwide. Grey employs 1,500 people and has 45 offices in nine German cities.
Copyright December 2000, Crain Communications Inc.