The US billings

Transcription

The US billings

THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS REPORT - MARCH 2005
The Media Agency Networks
Projected Billings & Rankings 2004
--------------- MARCH 2005 –RECMA Report n°w 25 --------------
PART 4
The US Billings & Rankings:
an industry landscape
• Methodology p.163-164
• Key findings in the US p.165-167
• Ranking by Group of networks p.168
• Ranking by agency p.169
• Independently-owned media agencies p.179
• Communication Groups’ media entities p.172-173
• Major US accounts moves affecting 2004 p.174
• Major US accounts moves affecting 2005 p.175
• Accounts in review with decisions expected before mid-2005 p.175
• Split of the P&G billings for the US p.176
US NETWORKS PROFILE
• Carat profile p.179
• OMD profile p.205
• Initiative profile p.183
• PHD profile p.209
• MediaCom profile p.189
• Starcom; MediaVest profiles p.213
• Mediedge:cia profile p.193
• Universal McCann profiles p.219
• MindShare profile p.197
• Zenith; Optimedia profiles p.223
• MPG profile p.201
Copyright © 1999-2005 Recma | All Rights Reserved | Content Cannot Be Reproduced Without Written Permission
RECMA Report W25 •www.recma.com •olivier@recma.com •+44 1628 623 357 •eudes@recma.com
161
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS & RANKINGS MARCH 2005
Projected 2004 BILLINGS / Definitive 2003
USA Methodology
RECMA local
investigation
* last market investigation: September 2004
* RECMA met, at least once, with all the networks’ local managing directors since 2003
Media Core billings
For each international network, RECMA established an “Agency Profile sheet” including all the
agency clients with spending greater than M$5. RECMA presents spending tracked by TNS Media
Intelligence/CMR (Analyse of the Top 2500 advertisers). The “projected 2004” figures are
calculated from the CMR data mid-2004 (Jan-Jun) which are doubled in order to estimate data for
the whole year 2004.
In the “Agency Profile sheets” details on the assignments are given client by client except when the
agency handles the entire media account (no specific comments).
Sources &
Methodology
Particular cases:
* When the planning and buying accounts are clearly split between two media agencies:
RECMA allocated half of the budget to each media agency.
i.e.: General Motors: planning handled by Starcom (GM Planworks) and buying handled by Universal
McCann (GM Mediaworks)
* When the buying is handled by a network and the planning by a full service agency:
RECMA allocated 2/3 of the budget to the network – 1/3 to the full-service agency.
i.e.: Burger King: MindShare handled the buying account while Crispin Porter was assigned for the
planning account
* When a client works with several media agencies:
RECMA provides details on the parts handled by each agency, then we looked either at the Top
Advertisers by brands or the breakdown by media and allocate the amount corresponding to the
assignments.
i.e.: Ford: shared between MEC and MindShare (handles Ford brand and dealers only)
The TNS/CMR data 2004 are based on 17 Media: Network TV, Cable TV, Spot TV, Syndication TV,
Hispanic TV, Magazines, Sunday Magazines, B-to-B Magazines, Local Magazines, National
Newspapers, Newspapers, Network Radio, National Spot Radio, Outdoor, Internet, Hispanic Magazines
and Hispanic Newspapers.
In order to take into account the spending not monitored by CMR, RECMA considers each local
office (typically handling 15 accounts) of a network bills M$1 for each client. See details in the
“Agency Profile sheets”. It varies from M$45 for MediaVest (3 offices) to M$315 for Initiative (21
offices).
* Nest step: the “projected billings 2004” will be revised in the next report further to an analyse of the
TNS/CMR Top 3000 advertisers with data 2004.
Diversified Services (DS) in the US :
Methodology for estimating theoretical billings
1
Most of the networks declared to us a percentage of their income coming from the “diversified services”. Nevertheless,
these rates, which vary from 10% to 30%, are hard to justify and cannot be retained for calculating DS billings. Indeed, it
will falsely increase the billings volumes and change the networks’ hierarchy based on media core business.
After developing a robust methodology to estimate billings for the core media business, which consist in compiling the
networks “Client Portfolio” and estimate the accounts value thanks to the TNS/CMR ad monitoring data (accounts with
spending greater than M$5 only), RECMA does want to add inaccurate DS billings figures which will result in distorting
the ranking and annual growth rates.
2
The starting point to estimate DS billings is to understand the practices of the industry.
In November 2004, RECMA submitted to each network a one-page inventory of their diversified services split into 13
categories. These tables were returned to us with staff figures by unit and billings for some of them.
Copyright © 1999-2005 Recma | All Rights Reserved | Content cannot be reproduced without written permission
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163
THE WORLDWIDE MEDIA AGENCY NETWORKS: BILLINGS REPORT MARCH 2005
USA Methodology (2)
2
According to these figures, we found out that the average ratio “billings/ staff “ of 4 was consistent for several networks,
and therefore could be applied to the other agencies.
How to explain that this ratio is much lower than the average ratio “billings/ staff” of 10 estimated for the media core
business?
Does it mean that the staff in DS units is twice less productive than in the traditional media departments such as
broadcast buying?
Or, does it mean that the budget amounts spent into DS are too small to achieve economy of scale like in the traditional
media buying?
3
From our perspective, the main reason is that a major part of the budgets allocated to the “non-traditional media” is
spent in the traditional media, hence already included in the « media core business » figures.
The networks’ managers would only be able to indicate to us the amount of the specific fees paid for the diversified
services and capitalized in theoretical billings, but without double counting the buying figures from traditional media.
4
Hence, RECMA evaluates the DS billings volume according to the staff numbers.
To this end, we have collected the staff numbers 2004 for all the networks’ DS units, and multiplied the total “DS staff”
by 4 in order to obtain a theoretical billings’ amount, to be added to the “CMR media core” billings.
In the ranking “by brand”, RECMA excludes the specialties that are “distant” from the media core business such as
companies specialised in research (i.e.: MMA), directory and yellow pages (i.e.: The Wahlstrom Group), wholesale of
print and newspapers (i.e.: Novus or Newspaper Services of America), etc.
5
This tentative methodology is a first step.
During the year 2005, RECMA will investigate further on the diversified services in the US and will improve the
accuracy of its DS billings and staff numbers by modulating the ratio of 4 according to the specialty categories
DIVERSIFIED SERVICES BY AGENCY
Estimated
Brand
Creation Staff
Principals
capitalized
& status
date
04
billings 04
*subsidiaries
Diversified services
1
Outdoor, Ambient
2
Multicultural
3
Sponsoring
4
Events
5
Sports Marketing
6
Programming;
Product Placement
7
Bartering
8
Expertises by Specific Media
9
Yellow Pages; Directory
10
Interactive /Digital
11
Direct Response
12
Consulting & Econometrics
13
Other
Ratio
Bill/
staff
Definition of the
services;
Tools Key clients
TOTAL
164
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS REPORT March 2005
Projected Billings 2004 / Definitive 2003
USA Key findings
* M$ 83 575 in 2004; 8% growth over 2003
Size of the
market (based
* The US market weights 37% of the global media activity (Europe 33% and Asia 27%
including most of the local players)
on the ranking by
Agency)
* staff number: +2.3% for the networks (8 669 staff)
Market Share
* The 11 networks account for about 55% of total market volume
* Ad spending totalled more than $141 billion in 2004, an increase of 9.8% over the
previous year, according to figures released by TNS Media Intelligence/CMR
(this figure is not comparable with the RECMA media activity billings)
* 40% of the US ad spending are handled either by full-service agency (see table),
independent media agencies or through in-house marketers’ media departments or
directly by advertisers (locally).
Market
particularities
* In the US, two networks operate two separate agencies:
- SMG: Starcom (hq Chicago) and MediaVest (hq New York) have different
management teams, positioning, profile and process while the two brands are linked in
all other markets.
- ZenithOptimedia: Zenith Media and Optimedia are also distinct with a different
management and profile.
Consequently, RECMA ranked the four agencies individually in the ranking by Agency,
and combined them into two groups in the ranking by Group of networks.
Independent
agencies from
the
international
networks
Ratio
billings/staff
* The leading US media independent agency is Horizon Media with $1bn of billings and
300 staff (half of the smaller agency part of a network, Optimedia)
* RECMA identified 13 independent media agencies weighting 7.6% of the market
(M$ 6 370 and 1157 staff)
*The ratio Billings / Staff for the Independents is 5.5 compared to 8.4 for the Networks
* average market ratio: 7.5 (8.4 for the networks)
* above:
Optimedia 10.5; MediaVest 10.2; OMD 9.9; Universal McCann 9.9;
MindShare 9.5 mainly due to high-profile accounts (high productivity).
* below:
Carat 6.1; Zenith Media 6.5; MPG 6.9 due to their average size (ranked n°8, 11 and 12)
* the staff numbers includes all the departments and subsidiaries (Diversified Services):
Staff number
hierarchy
1-Initiative US Gr 1 549;
4- Starcom 1 009;
7- Universal McCann 730
10- PHD 519;
2- OMD 1 058;
5- MindShare 950;
8-MediaCom 675;
11-MediaVest 515
3- Carat US Group 1 020;
6- Mediaedge:cia 800;
9-Zenith Media 587;
12-MPG 409;
13- Optimedia 209
News in 2005
* with the integration of MediaCom into WPP, the tri-media network group’ market
share would reach 25% in 2005
Next report
* publication of the Local RECMA report “Consolidated Evaluation in the US” in June
2005 based on the admonitoring Taylor Nelson Sofres research for 2004.
165
USA Key findings (2)
Billings
ranking
by
Networks
Growth for 04 over 03
1
1
Starcom MediaVest
M$ +1 305
1
MediaCom
+13.4%
2
2
OMD US Group
+790
2
Carat US Group
+12.8%
3
3
MindShare
+750
3
Starcom MediaVest
+10.9%
8
4
Carat US Group
+670
4
MindShare
+9.0%
9
5
MediaCom
+640
5
OMD US Group
+8.9%
4
6
Universal McCann
+455
6
PHD
+7.6%
6
7
Mediaedge:cia
+440
7
Mediaedge:cia
+7.4%
7
8
ZenithOptimedia
+375
8
Universal McCann
+6.7%
10
9
PHD
+310
9
ZenithOptimedia
+6.7%
5
10
Initiative US Group
+15
10
Initiative US Group
+0.2%
11
11
MPG Media Planning
(-155)
11
MPG Media Planning
(-5.2%)
All networks M$ +5 595
All networks
+7.8%
•
Starcom MediaVest Group posted the highest billings increase in absolute value (MediaVest +585;
Starcom/Starlink +720) with a growth rate of 10.9% (12.6% for MediaVest; 9.9% for Starcom/Starlink).
•
The Top 3 Networks grows stronger: the Three first networks in terms of billings show the biggest billings increase
accounting for half of the total networks’ growth. Besides recording significant new business wins, they also benefited
from a strong spending increase from key clients.
• Initiative
US Group is stable while the only declining network is MPG (excluding the losses of Volkswagen and
Intel for 2005)
• MediaCom
posted the highest growth rate in 2004 partly due to a significant spending increase of its key clients
(Warner +215, GSK +175) and an additional +M$350 new business wins. The loss of P&G will in majority be
reflected into the billings 2005 (offset by the win of Volkswagen for 2005).
Groups of competitors
The market is now clearly dominated by three Groups / Agencies (with a common management) weighting for 40% of
the US market estimated by RECMA:
• GroupM (CEO Irwin Gottlieb): nearly 20% market share in 2004, which should increase to 25% minimum
in 2005 with the integration of MediaCom and consequently will overtake the leader, Publicis.
• Starcom
MediaVest Group (CEO Jack Klues): with nearly 16% market share in 2004, SMG is the leading
group operating two strong media agencies
• OMD
(CEO Joe Uva): with 12% market share, the network is majority fuelled by clients from Omnicom
advertising agencies: BBDO, DDB and TBWA.
166
USA Key findings (3)
(see methodology page 163)
Billings
ranking
by
Networks
rk
5
1
Initiative US Group
1 840
1
Carat US Group
30 %
8
2
Carat US Group
1 790
2
Initiative US Group
26 %
1
3
Starcom MediaVest
1 595
3
MediaCom
18 %
2
4
OMD US Group
1 500
4
Mediaedge:cia
16 %
6
5
Mediaedge:cia
1 030
5
OMD
16 %
9
6
MediaCom
960
6
MPG Media Planning
12 %
3
7
MindShare
820
7
Starcom MediaVest
12 %
10
8
PHD
390
8
MindShare
9%
11
9
MPG Media Planning
350
9
PHD
9%
7
10
ZenithOptimedia
225
10
ZenithOptimedia
4%
4
11
Universal McCann
200
11
Universal McCann
3%
Diversified Services
M$ Diversified Services Billings
All networks
Part of the total billings
All networks
10 700 M$
14 %
• The
Networks’ DS accounts on average for 14% of the total billings
has the biggest share of DS because of the integration of MMA and Copernicus (billings amounted to M$670).
On the other hand, Initiative US Group includes Newspapers Services of America (M$1000) and ID Media (M$300)
among other affiliated companies.
• Universal McCann and ZenithOptimedia have the lowest billings volume from diversified services due to the few
specialised units developed.
• Carat
“Agencies Profiles” sheets (p.179+)
The “Agencies Profiles” will be updated in the “Definitive billings 2004” report after processing the TNS/CMR data
2004 (Analyse of the Top 3000 Advertisers).
Also, Projected figures 2005 will be established according to the account moves recorded during the last 6 months (see
tables “Major US accounts moves”).
167
THE WORLDWIDE MEDIA AGENCY NETWORKS: BILLINGS REPORT March 2005
1a-USA
2
6
1
3
4
5
7
By
Networks
By
Groups
RANK 2004
MARKET SHARE
2004 (%)
Ranking by Group of Networks
Communication
Groups / Media
Branch Organisations
Media Networks
Local Brands
Planning &
Buying Billings
(estimates from the
TNS/CMR data)
in US $m
Activity BILLINGS
Estimates (in US $m)
Definitive
2004
(June 05)
Projected
Definitive
2004
2003
Growth
Projected
rate %
2004
2003
04 vs. 03
Div.Serv.
+
Affiliated STAFF
Billings
(in US$m)
Projected
2004
2004
1 850
1 750
-
18.5 WPP / GroupM
15 465
14 275
+8.3
13 615 12 610
3
10.8 MindShare
9 045
8 295
+9.0
8 225
7 555
820
950
6
7.7
Mediaedge:cia
6 420
5 980
+7.4
5 390
5 055
1 030
800
9
6.5
MediaCom / Grey (1)
5 420
4 780
+13.4
4 460
3 915
960
675
-
23
PUBLICIS
19 235
17 555
+9.6
17 415 15 920
1 820
2 264
1
15.8
Starcom MediaVest
SMG
13 235
11 930
+10.9
11 640 10 495
1 595
1 524
7
7.2
ZenithOptimedia
6 000
5 625
+6.7
5 775
225
740
-
17.1 INTERPUBLIC
14 350
13 880
+3.4
12 310 11 860
2 040
2 279
4
8.6
Universal McCann
7 215
6 760
+6.7
7 015
6 580
200
730
5
8.5
Initiative US Gr. (2)
7 135
7 120
+0.2
5 295
5 280
1 840
1 549
-
16.8 OMNICOM (3)
14 040
12 940
+8.5
12 150 11 240
1 890
1 577
2
11.6 OMD US Group
9 665
8 875
+8.9
8 165
7 525
1 500
1 058
10
5.2
PHD US Group
4 375
4 065
+7.6
3 985
3 715
390
519
-
7.0
AEGIS Media
5 890
5 220
+12.8
4 100
3 610
1 790
1 020
8
7.0
Carat US Group (4)
5 890
5 220
+12.8
4 100
3 610
1 790
1 020
-
3.4
HAVAS
2 805
2 960
-5.2
2 455
2 645
350
409
11
3.4
MPG
2 805
2 960
-5.2
2 455
2 645
350
409
77 205
71 610
+7.8
66 605 61 800
10 700
9 974
MediaCom included in 05
Publicis Groupe Media
Magna Global
Omnicom Media Group
TOTAL Networks
5 425
(1) MediaCom US Group includes Beyond Interactive
(2) Initiative US Group includes Media First, Media Partnership, ID Media, NSA, Outdoor Services, The Wahlstrom
Group and PicTV
(3) OMD US Group / PHD US Group include Novus and Icon
(4) Carat US Group includes MMA and Copernicus
168
THE WORLDWIDE MEDIA AGENCY NETWORKS: BILLINGS REPORT – MARCH 2005
-
Market Share
2004 (%)
AGENCY Rank 04
1b-USA - Ranking by Agency (Local Brands)
Media
Agencies
Operational
groups of
networks (3)
Communication
Groups
Activity BILLINGS
Estimates (in US $m)
Definitive
2004
(June 05)
Projected Definitive Growth
2004
2003
rate %
04 vs. 03
Planning &
Buying Billings
Div.
(estimates from the Serv.
TNS/CMR data) Billings
in US $m
Proj.
2004
2003
Proj.
2004
Ratio
Staff
Bill./
Staff
2004 2003 2004
15 465 14 275
+8.3
13 615
12 610 1 850 1 750 1 725
8.8
13 235 11 930
+10.9
11 640
10 495 1 595 1 524 1 331
8.7
3
WPP
18.5 GroupM (1+5)
Starcom
Publicis
15.8
MediaVest (3+7+18)
WPP
10.8 MindShare
Omnicom
10.7 OMD
Publicis
8.9 Starcom SMG
4
8.6
Universal McCann
Interpublic
7 215
6 760
+6.7
7 015
6 580
200
730
727
9.9
5
6
7
8
9
10
11
12
13
7.7
7.2
6.5
6.3
6.2
5.6
4.8
4.6
3.4
2.6
WPP
Mediaedge:cia
Publicis
ZenithOptimedia
Grey-WPP
MediaCom
Publicis
MediaVest SMG
Aegis Media
Carat
Interpublic
Initiative
Omnicom
PHD
Publicis
Zenith Media ZO
Havas
MPG
Publicis
Optimedia ZO
6 420
6 000
5 420
5 245
5 215
4 685
4 035
3 810
2 805
2 190
5 980
+7.4
5 390
5 055
1 030
800
775
8.0
5 625
+8.4
5 875
5 425
225
740
740
8.2
4 780
4 660
4 460
4 620
675
515
1 115
852
600
375
785
8.0
10.2
4 100
3 915
4 095
3 610
960
625
4 615
+13.4
+12.6
+13.0
4 435
+5.6
4 685
4 435
-
650
887
7.2
3 760
+7.3
3 985
3 715
50
434
434
9.3
3 550
+7.3
3 665
3 420
145
587
587
6.5
2 960
-5.2
2 455
2 645
350
409
406
6.9
2 075
+5.5
2 110
2 005
80
209
209
10.5
+8.3
65 380
60 515 7 040 8 669 8 480
+16.8
-41.9
-6.2
515
305
305
440
525
325
75
-
54
59
30
45
62
30
10.9
5.2
10.2
TOTAL Agencies reporting to the networks
72 420 66 855
505
590
525
305
325
305
1 200 1 355
-11.4
1 125
1 290
75
143
137
8.4
TOTAL Affiliated & subsidiaries to the networks
3 585
3 400
+5.4
na
na
na
1 218
na
2.9
900
+11.1
-
-
-
300
280
3.3
790
+8.2
-
-
-
150
150
5.7
590
+3.4
-
-
-
75
70
8.1
1
2
(incl. GM Planworks)
(incl. GM Mediaworks)
86.7
TOTAL NETWORKS
Publicis
18 0.7 Starlink SMG
Interpublic
26 0.4 Media First
27 0.4 Media Partnership Interpublic
9 045
8 935
8 295
+9.0
8 225
7 555
820
950
950
9.5
8 220
+8.7
8 165
7 525
770
903
870
9.9
7 400
6 765
+9.4
6 505
5 960
895
955
875
7.7
6.1
8.4
14
15
16
1.2
1.0
0.7
Horizon Media
independent
Active Media Serv
independent
RJ Palmer
independent
1 000
855
610
17
0.7
Richards Media
independent
600
565
+6.2
-
-
-
55
55
10.9
19
0.7
JL Media
independent
570
560
+1.8
-
-
-
107
107
5.3
20
21
22
23
24
25
28
29
0.6 The Media Kitchen
0.5 Empower MMkg
0.5 KSL Media
0.4 Palisades Media
0.4 TargetCast
0.4 Corinthian Med
0.3 Harmelin Media
0.2 Southwest Media
7.6 INDEPENDENTS
independent
540
e400
e400
e360
335
e325
e225
150
6 370
510
+5.9
-
-
-
68
60
7.9
400
=
-
-
-
e100
100
4.0
400
=
-
-
-
e100
100
4.0
360
=
-
-
-
60
50
6.0
50
+570
-
-
-
42
6
8.0
325
=
-
-
-
e45
e45
7.2
225
=
-
-
-
e30
e30
7.5
150
=
-
-
-
e25
e25
6.0
5 825
+9.4
-
-
-
1 157 1 078
+7.9
-
-
-
11187
independent
independent
independent
independent
independent
independent
independent
TOTAL All Agencies
83 575 77 435
na
5.5
7.5
The media spending handled by media departments from creative agencies or direct by advertisers are not included in
this table. Taylor Nelson Sofres estimated a total ad spending 2004 of $141 bn for the US market (+9.8% over 2003).
169
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS MARCH 2005
Proj
2004
14
Horizon
Media
2003
Bill / Staff
US RANK 04
ACTIVITY
BILLINGS
ESTIM
(in US$m)
STAFF
US Independently-owned media agencies
Key Facts
(creation date, ownership, key clients)
Proj
04 04
Created in 1989, is independently owned and operated by the managers of the
1000 900 300 3.3 company. 4 offices: Atlanta,, NY, San Francisco & L.A.
Key clients: Food Maker, Jack in the Box, IKEA
15
Active Media
855 790 150
Services
5.7
Active International provides its clients an innovative service by purchasing
under-performing assets such as excess inventory, capital equipment, and real
estate in exchange for a trade credit that is utilized to acquire electronic and
print media, as well as other goods and services including sponsorships,
printing, travel and event planning.
16
R.J. Palmer 610 590 75
8.1
Founded in 1979, based in NY, RJ Palmer bought itself back from Panoramic
Communications, which owns ad agency Earle Palmer Brown
Key clients: DSW, American Legacy Foundation, etc.
17
Richards
Media
Media
19
J.L. Media
20
The Media
Kitchen
600 565 55 11
The Richards Group became a full-service advertising agency in 1976. In 1999,
they branded their media unit as Richards Media. Key clients: Red Lobster
570 560 107 5.3
Jerry Levy formed his media agency in 1981. Offices in NY, Miami and Tulsa.
65% are advertiser direct with the remaining 35% coming from agencies.
Key clients: Getty Oil, British Knights and Great Foods of America (H-O Oats,
Smart Beat), Norwegian Cruise Line
Media agency within the MDC & Partners network (which also includes
540 510 68 7.9 advertising agencies such as Crispin Porter, Cliff Freeman, Kirshenbaum Bond)
Key clients: KAO Corp / Andrew Jergens, B.A.T., Mohican Sun Casino & Resorts
e400 400 100 4.0
Based in Cincinnati. Formed in 1985 as Media That Works, offers a full range
of strategic and innovative media/marketing planning, research, consulting &
buying services. Key Clients: Bush Brothers & Co., 1-800-CONTACTS, Dicks
Sporting Goods, Stanley Steemer
e400 400 100 4.0
Founded in 1981. Three offices: New York; L.A.; San Francisco.
Key clients: Grey Goose Vodka, BBC America, Sweet 'N Low
Empower
21 Media
Marketing
22
KSL Media
23
Palisades
Media (PMG)
PMG, located in Santa Monica, California, was established in 1996 and is
e360 360 60 6.0 independently owned.
Key Clients: Miramax Films, Lions Gate Films, EA (buying)
24
TargetCast 335 50
25
Corinthian e325 325 e45
28
Harmelin
29
TCM
42 8.0
Media
Media
SouthWest
Media
Founded in 1982 in Philadelphia, Harmelin Media provides strategic media
Key clients: Aetna, Comcast, Yellow Book, America's Best Contacts & Eyeglasses
150 150 e25 6.0
Doner
-
Haworth Mark e400 e230 75
& Media
TOTAL
Founded in 1974, Corinthian Media is a service-driven results oriented media
buying and planning company. Key clients: Wakefern Food, etc.
e225 225 30 7.5 planning, negotiating and buying services to more than 100 clients.
-
(Media Dept)
7.2
Agency founded in mid-2002 by Steve Farella and Audrey Siegel. TargetCast
tcm was built from the ground up to provide strong independent brands with
the full service of advanced analytics and research they require. The agency
now handles 13 clients including 1-800 Flowers.com, Feld Entertainement, etc.
Based in Dallas. Key clients: Dillard's Department Stores, RH Donnelley Yellow
Pages, Whataburger, Service Corporation International and Joe's Crab Shack
e500 e500 190 2.6 Key Clients: May Dept. Stores, Buffet Inc., Six Flags, Mazda, Outback Steackhouse
5.3
Based in Minneapolis. Integrated marketing, media planning and placement firm
founded in 1970. Key clients: Mervyn; Target Stores; etc.
7270 6555 1422 5.1
171
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS REPORT MARCH 2005
Agencies
Rank 04
Groups
Rank 04
The Communication Groups’ media
entities in the US
Communication Groups
Media agency networks /
Full-services agencies /
3
INTERPUBLIC
A
MAGNA Global
Magna Global Entertainment
Magna Global Trading
B
4
Definition
MAGNA works on behalf of the Interpublic
Group’s media specialists, including Universal
McCann, Initiative, and other local media shops
around the world. MAGNA Global negotiates media
on behalf of aggregated clients from these agencies
9
na
na
na
UNIVERSAL
McCann
Media agency network
t:m
Operate independently within the McCann
WorldGroup network.
na
General Motors The Works
Consists of two integrated business units which
serve GM: GM Mediaworks and GM R*Works.
GM R*Works was created to assist General Motors
Divisions ( Buick, Cadillac, Chevrolet, GMC,
Oldsmobile, and Pontiac), and its five sales regions
identify, plan, and execute a variety of local and
regional events, promotions, and sponsorships.
na
INITIATIVE Group
C
AGENCY BILLINGS
BILLINGS Definitive STAFF
2004
Projected 04
2004
(US$m)
(US$m)
Initiative
Affiliates, subsidiaries, related companies
7 215
730
7 135
1 549
4 685
650
2 450
899
e300
150
e1 000
350
ID Media (50% Draft)
Direct response media services company
Newspapers Services. of
America (NSA)
Agency focused on the planning, analysis, rate
negotiation, placement and invoice auditing of
newspaper advertising.
Outdoor Services (OSI)
Buyer outdoor advertising
170
70
Wahlstrom Group
Services on directory advertising. Creating both
print and electronic programs
170
200
Pic TV
producer representative for promotional advertising
spots
200
40
26
The Media Partnership
Media agency based in Norfolk
305
30
26
Media First
Media agency based in NY; Minneapolis
305
59
Media departments of full-service agencies
D
na
Lowe Media
Full-service agency with a media department
na
na
Campbell-Ewald
na
na
Carmichael Lynch
na
na
Daily & Associates
na
na
DeutschMedia
Media department of Deutsch
na
na
FCB Media (planning only)
FCB benefits from the global media buying power
of Initiative
na
na
Hill-Holiday
na
na
The Martin Agency
na
na
Mullen
na
95
172
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS REPORT MARCH 2005
Agencies
Rank 04
Groups
Rank 04
USA-Inventory of the Communication Groups’ media entities (2)
2
6
Communication Groups
Media agency networks /
Full-services agencies /
BILLINGS BILLINGS
Definition
Projected
Definitive
2004
2004
STAFF
2004
WPP GroupM
1
MindShare
9 045
950
5
Mediaedge:cia
6 420
730
6
MediaCom (integrated into
5 420
675
WPP/GroupM from 2005)
A. Eicoff & Company
Specializes in results-producing broadcast advertising.
Direct response TV and trade support advertising
expertise.
91
OMNICOM
4
2
10
Omnicom Media Group
OMD
PHD
Media departments of full-service agencies
8 935
4 035
903
434
1 000
226
10
3
500
130
600
e80
5 885
1 020
5 215
852
e470
118
e200
50
13 085
1 524
6 095
740
GSD&M
Full-service agency operating independently from
other Omnicom ag.
Martin/Williams
Zimmerman Partners Adv.
Goodby, Silverstein & Partn.
Full Circle Entertainment
Icon
Novus
Production company specializing in developing and
producing programming
Specialized finance company engaged in corporate
barter and other financial deals
Discount print media buying agency providing
strategic, cost-effective marketing and media
expertise.
Aegis Media
5
CARAT US Group
7
Carat
Marketing Mix Modeling
(MMA)
Copernicus Marketing
Consulting
PUBLICIS
1
Publicis Groupe Media
Starcom ;
MediaVest (SMG)
11 Zenith Media;
13 Optimedia
3
8
7
MMA works with clients to develop fact-driven
marketing strategies, comprehensive brand plans,
on-demand marketing effectiveness,
Subsidiary of Aegis Group plc since 2004. It works
with advertisers to create marketing programs
Publicis & Hal Riney
Full-service agency with a media depart
Fallon Media
Fallon Media remains a fully integrated and
bundled service department within Fallon.
Broadcast buying outsourced to Starlink
34
HAVAS
12
MPG / Arnold
2 805
409
TOTAL
173
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS March 2005
Major US Accounts moves
(>M$ 3 750) affecting
the media network billings in 2004
ADVERTISERS
WINNERS
INCUMBENTS
M$
BUDGET
Procter & Gamble
(planning only)
Paramount Pictures
Starcom-MediaVest Group
(SMG), Carat
Starcom, MediaVest, MediaCom,
Media Planning
1 500
Mediaedge:cia
MediaVest
480
Miramax (W. Disney)
Palisades Media
Zenith Media
250
Mitsubishi
PHD
Deutsch Media
175
ONDCP (The White House Office of
FCB planning / Initiative buying
MindShare
180
Toys R us
Mediaedge:cia
Starcom
130
Applebee’s
Starcom
Initiative
100
Nokia
MediaCom
The Richards Gr .
90
DirecTV
OMD
MediaVest
80
Levi Strauss
Initiative
OMD
60
Pier One
OMD
Campbell Ewald / Initiative
60
Vonage
MPG (with Arnold)
Freestyle Interactive (online media
duties); Inter/Media Adv. (offline media
buying chores)
50
Wyeth (planning)
TargetCast TCM
ZenithOptimedia; Universal;
others.
50
Zurich Financial
ZenithOptimedia
Wundermann
50
Enterprise Rent-a-car
PHD
MediaVest
45
Goodyear Tire & Rubber
MPG
PHD (buying)
45
Tyson Foods
MPG
OMD
45
Gateway
Carat
Starlink
40
Ikea
Horizon Media
Maxxcom
35
MGM Mirage
MediaCom
Initiative partly
35
General Motors
Starcom
In-house
30
Oracle
Starcom
MediaCom
30
Delta Airlines
MindShare
Starcom
25
Ferrero
Zenith Media
Universal McCann
25
General Nutrition Centers
Cramer-Krasselt
Media Partnership / Initiative
25
HSBC
MindShare
ZenithOptimedia
25
Vivendi Universal Games
Horizon Media
Kovel/Fuller
25
California Lottery
PHD
MediaCom
20
McDonald’s Operators of Chicago
and Northwest Indiana
OMD
Starcom
20
Boeing
Initiative
KSL
15
Baskin- Robbins
Hill, Holiday
Initiative
10
National Drug Control Policy)
(OOH buying)
174
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS March 2005
Major US Accounts moves
(>M$ 5 560)
affecting the media network billings in 2005
WINNERS
INCUMBENTS
M$
BUDGET
Nestlé
Optimedia
Universal McCann (Full Service:
beverages, nutrition, waters; Buying: All US
business); MindShare (select brands
planning); Optimedia (select broadcast +
select planning for Nestlé Ice Cream); MPG
(planning for Stouffers & Lean Cuisine);
PHD and Initiative (Nestle Purina Petcare)
550
Volkswagen
MediaCom
Mediaedge:cia (TV and outdoor
buying: M$390); OMD retained
MPG
430
OMD
390
ADVERTISERS
Cingular
newspaper and radio buying (M$440)
J.P. Morgan Chase
Zenith Media
Bank of America
Slim Fast (owned by Unilever)
Initiative
MindShare
Universal McCann (full service
Carat (Bank One); Initiative
(some buying for Chase)
DeutschMedia
300
MediaCom
200
100
MPG (with Euro RSCG)
100
In-house
Initiative
90
80
Carat
75
DeutschMedia
75
RJ Palmer
70
MediaVest
Draft / Initiative
Horizon Media
Y&R / Mediaedge:cia
70
60
CompUSA
Richards Media
Carat (TV & Outdoor buying for
Good Guy's);
Optimedia (some broadcast buying);
Italia (most of the buying)
50
Porsche
Weight Watchers
Samsung (corporate)
LEGO
Motorola
Western Union (TV buying)
E-Loan
Rent-A-Center
Virgin Mobile
THQ
Amica Insurance
Kastner & Partners
Mediaedge:cia
MindShare (Team Samsung)
Lowe Media (IPG)
Starcom
Starcom
Carat
KSL
Hill, Holliday
Carat
Starlink
MindShare
MPG
Universal McCann
MindShare
Carat
none
Palissades Media
Summit Media
Cossette Post
Intel
with McCann)
Autozone
Bally Total Fitness
Pfizer (Direct response TV buying)
Revlon
Church & Dwight
EarthLink
Computer Associates
MPG
Starcom
Mediaedge:cia (Wunderman
Media)
Carat
Universal McCann
(Frontier Communications)
PHD
FCB/ Initiative
45
45
40
30
30
30
30
25
25
20
10
Accounts in review with decisions expected before mid-2005
ADVERTISERS
General Motors (buying account)
L’Oréal
Charles Schwab
Shell Oil
Sun Microsystems
M$
BUDGET
GM Mediaworks (IPG)
1 700
Universal McCann (M$450) ; Optimedia (M$250)
700
PHD (planning and print buying); RPA (TV buying)
100
Initiative
90
Starcom
20
INCUMBENTS
175
THE WORLDWIDE MEDIA AGENCY NETWORKS. BILLINGS MARCH 2005
Split of the Procter &Gamble billings
2003 in the US
Total
spending
2003
(CMR):
M$ 2 685
Starcom (22%) MediaVest (56%)
M$
600
Print and OOH AOR
+ planning for
individual brands
M$
MediaCom (19%)
1 500
M$
TV buying & planning
MPG (3%)
M$
500
85
Planning for Bounty
& Zest
Planning for 18 brands
2004 in the US
(following P&G Communications planning review - effective from October 2004)
Starcom
MediaVest
MediaCom
Carat
MPG
(24%)
(55%)
(11%)
(8%)
(2%)
M$
Total
spending
estimated
for 2004:
M$
3 200
775
M$
Print and OOH AOR +
planning for individual
brands
+ extension P&G
Communications
planning
(4 divisions split with
MediaVest:
Beauty Care,
Fabric Care,
Home Care and Healthcare)
1 775
M$
TV buying & planning
+
extension P&G
Communications
planning
(4 divisions split with
Starcom:
Beauty Care,
Fabric Care,
Home Care and Healthcare)
35% of the new
assignments won by
SMG went to Starcom
65% of the new
assignments won by
SMG went to
MediaVest
+M$ 175
+M$ 275
M$ 350
Lost
Planning for 18
brands
(effective from
October 2004)
-M$ 150
250
Won
Communications
Planning
assignment for:
M$ 50
Lost
Baby Care,
Pet Care,
Family Care, Snack
and beverage
products
Planning for
Bounty & Zest
brands
(effective from
October 2004)
-M$ 35
20% of the
planning account
+M$250
Estimated 2005 in the US
Total Spending
estimated for 2005
(+ 10% over 04):
M$ 3 500*
•
Starcom (26%)
M$
MediaVest (56%)
900
M$
1 950
Carat (18%)
M$
650
This estimate 2005 does not take into account P&G acquisition of Gillette announced in January 2005.
Gillette US media account (M$400) currently handled by MindShare will be integrated into P&G this year.
A consolidation review of the combined account is expected shortly.
Split of the P&G media account outside the US
UK (M$380): MediaCom (print buying); Starcom Motive (TV & radio buying AOR); Starcom MediaVest (50% of
the planning); ZenithOptimedia (50% of the planning)
France (M$200): Starcom (strategy and TV buying); MediaCom (all buying except TV)
Germany (M$400): MediaCom (all buying + part of planning); Starcom (40% of the planning)
Italy (M$180): MediaCom (50% of the planning); Starcom MediaVest (50% of the planning & all buying)
Spain (M$200): MediaCom (tactical plan. and buying); Zenith Media (strategic plan.);
China (M$610): Starcom (all buying + tactical planning, scheduling and implementation + 50% of the planning);
ZenithOptimedia (strategic planning for about 70% of the brands)
India (M$140): Madison Media (all buying + some planning); Starcom (some planning)
176

The US billings

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