SEATTLE - Herring/Newman, a direct marketing shop that over the last two years has been expanding into general market advertising, has acquired small creative agency McMath & Gross. The move is meant to enhance H/N's broadcast advertising capabilities.
'Every major advertiser is rethinking the way they advertise,' explained Phil Herring, president of the $38-million shop. For some that's meant more direct marketing and a move to smaller shops willing to handle the whole package. 'Many clients spending 75% on brand advertising and 20% on direct, flipped that equation,' Herring said. 'Why would you want an agency that bills hundreds of millions of dollars handling 20% of your budget?'
Last year, Hewlett-Packard's Test and Measurement Group moved its business-to-business advertising from high-tech shop Tallant/LaPointe, S.F., to Herring/Newman, which already handled direct response for H-P. Direct marketing billings comprise about $4 million of that $6-million account.
For David McMath and Dan Gross, who join H/N as creative directors and equity partners Aug. 1 with nine employees, the move makes sense as it becomes tougher for general market agencies to survive, they said. The partners worked at now-defunct creative hot shop Mogelgaard & Associates before starting their agency in 1990. The shop's clients - including Cellular One, the Seattle Times and Bartell Drugs, are expected to make the move with combined billings of about $4 million, although it hasn't yet been determined if they will become involved in integrated marketing.
H/N's direct clients include Airborne Express, Australian Tourism Commission, Westin Hotels and Sun Microsystems.
Copyright Adweek L.P. (1993)