Five independent firms have invested in a think tank-like project to come up with new PR tactics and pitch new business.
Carter Ryley Thomas, Paine PR, Patrice Tanaka & Co., Peppercom, and Padilla Speer Beardsley, which combined billed $30 million last year, are calling the joint venture, Lumin, an R&D shop for PR.
Top executives of the firms told this website each firm will remain independent but will collaborate on everything from accounts and staff training sessions to where they buy healthcare coverage.
Mark Raper, chairman/CEO of Carter Ryley Thomas, stressed the move is not a prelude to a merger. He added that if Lumin is viewed as "another PR network," he will consider it a failure.
Raper said research the firms conducted found that corporate clients - which include American Express, General Electric, Wyeth and others - cited innovation and ideas as their top priorities. CRT and PT&Co. are currently working together on a couple of GE projects and Paine and PT&Co. have worked together for a tech client.
Raper also said Lumin, which operates as an LLC, will allow the firms to potentially pursue accounts that might not have been within reach of the individual firms and to compete with larger competitors on a new level.
"Collectively, we're pretty formidable," said Edward Moed, managing partner at New York-based Peppercom, who added larger agencies have become somewhat homogenous or stale in their PR offerings. He said the firms will collaborate on accounts, in addition to R&D of new PR "products.
"The firms brought in Darryl Salerno, former chairman/CEO of Magnet Comms., to serve as executive director of the venture, which they bill as an "intellectual collaborative.
"Raper said Lumin expects to roll out three "products" from its "R&D PR lab" this year.
The venture is governed by two senior execs from each firm.
Reprinted with permission by Jack O'Dwyer
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