Some Minnesota ad firms still expanding

Marketing: Risdall, Fallon both continue to gain business, add employees

Finance and Commerce
February 6, 2009
By Bob Geiger

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At a time when profit-squeezed advertising executives quip that “flat is the new up,” Risdall Marketing Group and Fallon Minneapolis have managed to gain business.

New Brighton-based Risdall Marketing Group (RMG) expanded from 60 to 80 employees, up 33 percent, during 2008, when the agency picked up 101 new clients or projects from existing clients.

Fallon, which produced edgy advertising for Travelers Insurance and ex-clients BMW Cars North America, Citigroup and EDS, has garnered more than $50 million in ad spending from three clients in the first weeks of 2009.

Fallon’s gains include the estimated $30 million Boston Market account, $20 million Totino’s frozen pizza and pizza rolls business, and ALPO brand dog food, the fourth Nestle Purina pet food brand for which the agency will create marketing.

RMG’s gains reflect “having the right people and the right stuff at the right time,” said John Risdall, chairman and chief executive officer of the firm, which has 14 separate divisions, including the superfluous “Risdall Museum of Luminous Sculpture.”

During better days, when Minneapolis was a gleaming hub of creative advertising, RMG had trouble drawing big-city talent to New Brighton.

“We used to not be able to get them to cross the river and come up to (Interstate) 694,” Risdall said. “Today, that’s no problem.”

RMG’s specialty in Internet technology and interactive design began more than 15 years ago, when agency staffers wrote their own computer code during internet marketing’s infancy.

Website design and a host of other interactive marketing opportunities helped expand the tech side of RMG, which complemented the agency’s business-to-business marketing.

Risdall followed 2008 with a record new-business month in January, when the agency landed print advertising, public relations and website design, online marketing or social media projects for seven clients and another major client Risdall declined to identify.

Additional employees and work volume forced the shop to expand onto the second floor of an 80,000 square-foot building southwest of Interstates 694 and 35W.

RMG has been adding divisions for years – the most significant ones being Risdall McKinney Public Relations (RMPR), Risdall Integration Group, Risdall Online Marketing Group and Risdall Strategic Consultation Group.

These disciplines play roles in larger firms that specialize in mass media advertising. But with conventional broadcast and print advertising migrating online, tech-savvy RMG is positioned to garner revenues from clients seeking exposure in a web-driven ad world.

“Social media was a big killer,” said Risdall, referring to the February 2008 creation of Risdall Integration Group (RIG), a division that intertwines social media with the firm’s client marketing efforts.

“It’s the core of an ad agency,” Risdall said. “The cool thing is PR supports web, web supports PR, and both support advertising – so you’re in a better position to have it go around and around and around.”

Jared Roy, president of RIG, returned to the agency last year from the Winston-Salem, N.C. office of Mullen, a Wenham, Mass.-based ad agency.

“We treat (social media) as a new media channel that you have to pay attention to,” Roy said. RMG created a mapping process to determine which social networking venues make the best marketing sense for its clients.

Other RIG clients include Fairview Health Services, Premier Mounts (a California manufacturer of flat-screen TV mounting products) and McNally Smith College of Music in St. Paul.

Although not as large as Fairview, music school McNally Smith is a good example of how social marketing can help reach prospective students. Roy said high school-age students interested in attending music colleges use the web to determine where they will go to school.

So RMG keeps track of musicologists and students discussing music school experiences on such social networking sites as Facebook and Twitter – and offers information about McNally Smith at key decision-making times.

Other recent hires of talent from downtown agencies include Cindy Lord, president of Risdall Strategic Consultation Group, and Helen Lauen, who joined Lord this week as director of strategic planning from Minneapolis shop Gabriel deGrood Bendt.

“I usually just introduce myself as strategy gal,” said Lord, whose division focuses on business and marketing strategy related to its communications and branding efforts.

At RMG, she said, “There’s a lot more focus on just doing the right thing for the client. At larger agencies, there is more focus on getting the right kind of work in front of the right people in the right place.

“There’s no pressure just to meet some sort of marketplace,” Lord continued. “That just doesn’t exist here. I’ve found that very freeing.”

The agency’s public relations division, Risdall McKinney Public Relations (RMPR), also has turned out to be a revenue generator.

Headed by Rose McKinney, who joined RMG in 2006 from the PR business unit of Minneapolis agency Martin/Williams, RMPR has expanded to a 12-employee firm with $3.5 million in annual revenues.

The firm has tapped PR and corporate execs, including Joel Swanson, former communications director at Blue Cross Blue Shield Minnesota; Brant Skogrand, ex-communications director at Thrivent Financial for Lutherans; and Eva Keiser, who joined RMPR from Minneapolis firm Padilla Speer Beardsley.

The good fortune at RMG and Fallon creates a sense of hope and confidence during quiet days on the agency front. It is embodied by a quote in a Fallon news release about landing the ALPO assignment.

“We’ve all seen the picture of the dogs playing poker,” said John King, director of brand innovation for Fallon. “That photo represents the ALPO brand and the ALPO dog. We believe dogs haven’t changed; people have, and people changed dog food to meet their needs. ALPO is going to call a timeout and give permission for dogs to be dogs again.”

The agency’s first work for ALPO, a venerable brand that once had Bonanza star Lorne Greene as its spokesman, is scheduled to break later this month.

About Risdall Marketing Group
Founded in 1972, Risdall Marketing Group has annual capitalized billings of $190 million in 2008 and over 80 employees. Headquartered in New Brighton, Minn., Risdall is heralded as one of the oldest and most successful agencies in the Twin Cities market and is recognized nationally for its leading-edge interactive marketing capabilities. The full-service agency embraces an integrated approach offering marketing, advertising, public relations, promotion and collateral development, traditional and interactive media, research and fundraising capabilities. According to the 2008 Twin Cities Business Annual Business Information Guide, RMG is ranked as the largest Web developer, fifth largest PR agency and the seventh largest advertising agency in Minnesota. For more information, visit www.risdall.com.

John Risdall
Risdall Marketing Group
651.286.6702
john@risdall.com

Lisa Grimm
Risdall McKinney Public Relations
651.286.6761
lisa@risdall.com

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John Risdall (above), founder of New Brighton-based Risdall Marketing Group, attracted executives from larger Minneapolis ad agencies 2008 as the number of agency employees expanded to 80. (Photo: Bill Klotz)