United colors of GlobalHue: Don Coleman has positioned his agency to make a play on markets of every stripe and color

Black Enterprise, June, 2003 by Alan Hughes

On a blustery March afternoon Don Coleman, 51 sits behind his spacious desk in his Southfield, Michigan, headquarters and collects his thoughts. Meetings with creative teams, finance staff, and clients crowd today's agenda. The next few days will find him on the road, holding even more meetings in Philadelphia and New York.

Rising to his full height of six feet, three inches, the 245-pound former linebacker heads to a conference room where crystalline municipal and charitable awards rest beside University of Michigan football memorabilia. On bookshelves, one can find a 400-plus page hardcover copy of The Vibe History of Hip-Hop sandwiched between other titles like Profit Patterns and Quotable Business. Such diverse interests might seem out of place in other corporate offices, but these elements blend together seamlessly at GlobalHue (No. 1 on the BE ADVERTISING AGENCIES list with $350 million in billings)--the advertising agency where Coleman conducts business, as he works toward his vision of creating a multicultural marketing powerhouse.

And he's well on his way. With clients that include Chrysler, Verizon Wireless, American Airlines, Miller Brewing Co., and Johnson & Johnson, GlobalHue is a full-service advertising agency to the entire multicultural market. In addition to targeting different ethnic groups, the agency focuses on the urban, young adult, gay, and transgender markets. With offices in New York Miami, San Antonio, and Los Angeles, the firm is positioned in the main geographic areas where most minority populations reside.

Formerly Don Coleman Advertising (DCA), GlobalHue posted 2002 billings of $350 million, a 6% gain over the $330 million billed in 2001--all during one of the most brutal advertising environments on record. The new name, which took effect in 2002, reflects DCA's acquisition of Montemayor y Asociados, a San Antonio-based Hispanic advertising agency with nearly $90 million in annual billings, and Innovasia, a Los Angeles-based Asian American advertising agency with an estimated $20 million in billings.

Why reinvent an already successful business? The answer is clear after looking at America's changing demographics. According to the 2000 census, African Americans, Hispanics, and Asian Americans will represent 40% of the U.S. population by 2020. Spending power among minority groups is expected to exceed $2 trillion by 2007--$852.8 billion for African Americans, $454.9 billion for Asian Americans, and $926.1 billion for Hispanics, according to the Selig Center for Economic Growth, a research arm of the University of Georgia. This growth is attributed to population increases as well as rising income levels. "We're talking about populations that are now 37% of this country [and] are growing at seven times the rate of the white population," points out Coleman, who says by 2010, over 50% of all people in this country under 21 will fall within this category of consumer: "So marketers are seeing that this is no fad, this is for real."

Despite their surging numbers, less than half the Fortune 1000 companies actively market to this sector. As spending power among minority groups increases, it's likely that more corporate giants will allocate advertising dollars in this area--making the multicultural segment a true emerging market. "I definitely think this industry is just scratching the surface," says Corliss Green Thornton, associate professor of marketing at the Robinson College of Business at Georgia State University. "There's a lot more work to be done in this area."

As chairman and CEO of GlobalHue, Coleman is positioning his firm on the forefront of this burgeoning sector. The company's demonstrated ability to remake itself and grow in today's harsh business climate has earned GlobalHue its selection as the 2003 BE Advertising Agency of the Year.

FROM THE GRIDIRON TO MADISON AVENUE

The road to becoming an advertising executive began when Coleman was still in the National Football League. While on injured reserve, Coleman, who holds an undergraduate degree in journalism from the University of Michigan, attended classes at Hofstra University, eventually receiving an M.B.A. in marketing. He wound up playing four seasons with the New Orleans Saints and New York Jets until knee injuries permanently sidelined him in 1977. Landing a position at Warren, Michigan-based Campbell-Ewald Advertising, Coleman worked his way up the ranks, eventually becoming a vice president. In the '80s, he left that firm to work at Burrell Advertising where he learned about target marketing.

By 1988, he decided to venture out on his own and formed DCA, which consistently ranked among the nation's largest black-owned agencies. Coleman joins serial entrepreneur Don Barden of Barden Companies Inc. (see "The House Always Wins," this issue) as CEO of a BE 100s company that has twice earned the distinction of being a company of the year. In 1998, DCA was named BE Advertising Agency of the Year for its innovative approach to gaining market share.