A Washington public relations firm known for public affairs and crisis communications is diversifying into advertising.
WPP's PR Agency
APCO Worldwide(安可公关) has acquired Strawberry Frog LLC, a small privately owned New York-based ad agency. Terms of the deal weren't disclosed.
Launched in 1999, StrawberryFrog has created award-winning work for Emirates, BlackBerry, Frito-Lay, Google, Pampers, PepsiCo, Heineken, Microsoft, Mitsubishi, Morgan Stanley and Onitsuka Tiger
The Agency now has roughly $10 million in revenue from its U.S. operations, and, works on behalf of marketers such as Procter & Gamble Co. and spirits maker Beam Inc.
APCO has about 30 offices around the world and has worked for companies such as Dow Corning Corp., WorldCom Inc. and Procter & Gamble Co. It helped Hewlett-Packard Co.'s board when that company ousted its former chief executive, Mark Hurd.
APCO's global presence will "give us the ability to work with clients in more markets around the world," said Scott Goodson, chief executive of Strawberry Frog.
The deal is the latest sign of how the lines between advertising and public relations are blurring. Increasingly being charged with helping marketers manage their social media marketing, PR firms are now finding themselves having to make creative content for marketers.
As a result, many PR firms have hired Madison Avenue creative executives and some firms have built out strong creative divisions within their companies.
"We invested in an advertising agency because as communications disciplines converge we need to be" in all areas, said Margery Kraus, APCO's founder and chief executive.
Richard Edelman, chief executive officer of Edelman, says about 20% of the employees in his firm's digital practice, which currently has about 600 staffers, have come from the advertising business.