Administaff Selects NextMedia

Administaff has awarded its media account to NextMedia.

The Dallas agency won the account following a review against undisclosed regional contenders. The Perrault Company, the Houston incumbent, did not participate. Billings are undisclosed.

NextMedia is charged with handling local planning and buying and developing a national media strategy for the Kingwood, Texas-based company, which has relied on spot radio in its 21 markets.

Administaff is seeking a national audience for two reasons: To offset future marketing costs of introducing the brand in new markets and because it is able to work for companies outside of its primary territories, said client vice president of marketing Greg Morton.

Administaff is a personnel management company that serves as a human resources center for small to midsize businesses.

The client had tried unsuccessfully to go national in past years, said agency principal Mike Ritzman. NextMedia was able to present a “more sophisticated anal-ysis of how network radio would help them,” he said, which “turned out to be the difference maker” in the review.

Ritzman and his staff have experience in upgrading clients from spot to national radio sponsors. Ritzman, for example, was with The Richards Group when that Dallas agency transitioned Motel 6 andT.G.I. Friday’s into national advertisers. More recently, NextMedia helped Telocity expand nationally before it was acquired by Hughes Electronics.

Morton said he was impressed with the agency’s experience working with different media. TV and print advertising, however, are not planned for the near future, he said.

Administaff plans to begin a national advertising program in early 2003. Creative continues to be handled by Radio Works of Houston.

The company, whose chief competitors include ADP and Gevity HR, has plans to expand to 40 U.S. markets. Today the outsourced segment of the human resources marketplace accounts for less than 3 percent of the HR industry, according to the client.

Administaff spent $6 million on advertising and marketing last year and $3 million during the first half of this year, according to company documents. The company reported 2001 revenue of $4 billion.

A rise in health claims led to Administaff’s reporting a net loss of $3 million for the second quarter versus a net income of $4 million during the same period last year.

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