Shop Adds Clients in Long-Term Care, Hotel Arenas
LOS ANGELES-Kovel Kresser and Partners has picked up a pair of new accounts, including a client in the fast-growing long-term healthcare arena.
The Santa Monica, Calif.-based agency has won the estimated $10 million account of long-term healthcare provider U.S. Care, after a review. The shop will handle creative and media duties for the company, also in Santa Monica, and eventually develop a national branding campaign. Separately, KKP has also won the $1 million account of Baja Hotel Reservations, Irvine, Calif., which operates a pair of luxury hotels on the Baja peninsula. The client had previously handled all marketing and advertising in-house.
The U.S. Care review initially included 10 shops from around the country and was later narrowed to four finalists, according to Beverly Spadotto, vice president of marketing communications. KKP was selected "because they have a reputation for creative advertising and we were impressed with their work on Kaiser Permanente," Spadotto said. KKP handles several regional accounts for Oakland, Calif.-based Kaiser, but U.S. Care does not consider that relationship to be a conflict since Kaiser does not operate in the long-term care area, Spadotto said. KKP is not involved in Kaiser's current review for an estimated $30 million corporate branding assignment.
"We're pleased to have been selected to handle an across-the-board marketing effort for [U.S. Care]," said KKP chief creative officer Lee Kovel. "It's terrific to be in a category that's growing so quickly."
The two account wins come after the shop recently secured the estimated $15 million Energy Pacific business.
U.S. Care, which previously used a variety of shops, will mainly employ print ads and direct marketing, eventually expanding into TV, Spadotto said. The client plans to spend about $10 million on advertising annually.
Long-term care, which involves nursing home and home-care patients, is one the largest growth sectors in the insurance industry, noted U.S. Care chairman Sam Kaplan. "Every eight seconds someone turns 50; every day 5,500 people turn 65; and every month 1,000 people turn 100. By the year 2030 we will have over a million centenarians in this country," said Kaplan, who founded the company in 1989. "So there's a big need to educate people about this issue." The sector grew at an average growth rate of 23 percent from 1987-1995, according to industry reports.