July 1999

Hoffman’s think3 Global Account Fuels Asian Offices

by Mark Johnson

One of the fastest expanding hi-tech PR firms, San Jose-based The Hoffman Agency, has signed CAD software company think3 as its first global client for fees of US$1.2 million, with fees in Asia-Pacific around $320,000.

The tech firm won the account as it announced the forthcoming opening of its Hong Kong office this month, to be headed by San Jose-based Michelle Herman, who has been named director.

Think3, which is part owned by computer chip maker Intel Corp, launched its Asia-Pacific operations in Singapore through distribution partners in May, and has briefed Hoffman for campaigns in several Asian markets.

“The programmes will focus on Japan, Korea, Singapore and Malaysia, with regional press activities co-ordinated out of Hong Kong,” said Ms Herman.

The brief includes direct marketing, customer activities, product launches and brand building programmes as part of a full public relations campaign for the firm’s 3-D mechanical design software.

Hoffman will also handle visits for think3 CEO Joe Costello.

The “conservative” regional fee of $320,000 for think3 also included income from a further regional retainer--Hewlett-Packard’s Product Services Division--and a project for infoEx-World Services in China.

The regional wins are fuelling Hoffman’s fast expansion in the region, with revenue from the firm’s Beijing, Singapore and Tokyo offices accounting for 12 per cent of global revenue.

“By 2003, we expect Asia to generate roughly 20 per cent of our revenue,” said Hoffman Agency president Lou Hoffman.

Expansion has been hampered, however, by a long-term search for a regional managing director.

“We have short-listed several candidates since January, but it’s been difficult to find the right person,” said Mr Hoffman.

With four Asian offices at present, the agency will aim to have seven branded offices in Asia by the end of 2001, with plans to grow organically or acquire, said Mr Hoffman.

A Taiwan office is a likely next step, “but we are thinking about how quickly to move,” Mr Hoffman told APRN.

Hoffman’s structure aims to bridge the market gap in IT PR, between the multinationals and local boutiques through regional coverage and brand recognition.

“We need to be based in the US and leverage that market--it’s not unusual for domestic fees in the US to surpass $1 million,” said Mr Hoffman.

Based on in-house research, Hoffman estimates more than 70 per cent of outsourced PR dollars sit in the US.

Back to top