For years the advertising industry has struggled in the grip of infamous holding companies such as IPG, WPP and Publicis. Without question, these global conglomerates have changed the face of advertising and forced everyone working in what was once a supremely creative business to focus, first and foremost, on the bottom line.
But not all the companies that have grown and thrived in the marketing arena in recent years have done so as part of a giant holding company. One company that continues to operate and expand with no ties to any of the faceless, often heartless conglomerates is the Chicago-based River North Group, headed by chairman Kevin Berg and CEO Vince Parrinello.
Privately held, the River North Group is comprised of four separate agencies. Legacy Marketing Partners specializes in event and experiential marketing. Marketing Drive focuses on promotional and shopper marketing, while Premium Surge handles incentive-based promotional marketing.
The fourth unit is Empower, which is all about social media. Empower led the Barack Obama social media campaign during his successful run for President of the United States in 2008, and Empower will do so again for Obama’s reelection bid in 2012.
The River North Group’s roots, however, were actually in the IPG conglomerate.
Berg and Parrinello are former Draftfcb executives
In 2004, Berg and Parrinello were executives at Draft/Chicago, part of the IPG family. But the two never felt comfortable working within the holding company bureaucracy, and they increasingly felt the urge to flex their entrepreneurial muscles.
So Berg and Parrinello negotiated a deal with IPG to acquire Marketing Drive, as well as an entity that would become known as Legacy Marketing Partners, and they formed the River North Group.
“I think Kevin and Vince really yearned for the flexibility that came with running a business that wasn’t part of a holding company,” explained River North chief marketing officer John Minnec.
River North is now headquartered in Chicago, but its four units have a presence in 76 markets and employ some 400 people. Altogether, River North’s units generate approximately $300 million in billings annually.
The four entities under the River North banner service a surprisingly wide range of clients. Among them are Kmart/Sears, Kraft Foods, L’Oreal Paris, Dannon and Burger King, which is at the start of a tricky attempt to refocus its marketing efforts on its menu rather than the young males on whom the burger behemoth fixated for a number of years.
The River North Group is obviously involved in many aspects of marketing, but it does not, as yet, include a traditional consumer advertising agency among its holdings. But Minnec said the company may also one day run a traditional ad agency — perhaps sooner rather than later. “We’re always looking at ways to grow the company,” he added.
In the meantime, Minnec said River North is selling itself to clients with the promise that it has the capabilities to deliver a broad-based branding experience. Chairman Berg told us River North is in fact a “network of agencies with one thing in common: a passion to accelerate a brand’s success.”
Spoken like a true marketer.
Contact Lewis Lazare at LewisL3@aol.com.
