Arun Sudhaman 07 Feb 2023 // 7:27AM GMT
SYDNEY — Enero CEO Brent Scrimshaw believes that a focus on performance marketing will help key group PR firm Hotwire navigate the worst of the technology slowdown, which has seen several major companies make tens of thousands of layoffs.
Scrimshaw's comments come after it emerged that Hotwire was conducting a "strategic review" of its UK workforce. The Enero PR firm has made a series of acquisitions in recent years, including UK performance marketing agency McDonald Butler Associates, Asia-Pacific B2B tech marketing firm GetIT, and B2B digital marketing shop ROI DNA in San Francisco.
"In line with the rest of the industry in the UK, definitely we’re seeing a need for more integrated solutions," Scrimshaw told PRovoke Media. "Where that leads to right now is under advisement as we get to the end of the review. It’s very clearly about the acceleration of our reputation, relationship and revenue based services."
Separately, PRovoke Media today revealed that Hotwire had named its first UK CEO, hiring Jeremy Lucas from Edelman.
Specifically, Scrimshaw thinks that B2B technology companies, which form the vast majority of Hotwire's client base, are more sophisticated about the newer services that the firm has acquired. "There's definitely been some conservatism," he admits. "But they are quite quickly catching up to the notion that these type of three services provided together, is something quite unique."
"[They] probably adopt that type of thinking earlier, maybe earlier than traditional B2C based businesses," continued Scrimshaw. "We’ve seen an increased focus on ROI; 'how do I extract the most value whether it's around brand management and DNA or direct marketing return on my investment'."
Scrimshaw added that "there is still strong growth in the areas we operate: cloud, digital transformation and cybersecurity."
After selling PR firm Frank back to its management in 2021, Enero now owns two PR firms in Hotwire and CPR, the latter of which specialises in government relations in Australia. It is clear, said Scrimshaw, that Hotwire is "a core brand within the Enero portfolio and one that can offer global solutions."
While further short term acquisitions are not expected, Scrimshaw expects investment in Hotwire to focus on the firm's geographic capabilities. "You can expect us to invest in reputation management and relationship skills in [Asia-Pacific] to complement GetIT, whereas in the UK and US, we had a media/advisory-based capability, but through other investments, we’ve built out marketing-based capabilities."
Enero reported 35.5% revenue growth for Q1 of its 2023 fiscal year, which runs to the end of June.