| Top Ad Holding Groups Ad Age, April 30, 2007 reported:
"The Big Four last year kept the same worldwide-revenue rankings in place
since 2003: Omnicom, WPP, Interpublic and Publicis.
Interpublic was No. 1 as recently as 2000. It fell to second, behind
Omnicom, in 2001, and third, behind WPP, in 2003. Interpublic could
slump to No. 4 in 2007; Publicis, with its faster organic growth and the
Digitas acquisition, is coming up fast. Interpublic's position will
depend in part on how much progress it makes this year in its stated
goal to achieve organic revenue growth "comparable to industry peers ...
by 2008."
1.Omnicom Group Inc. -(NYSE:
OMC) New York
http://www.omnicomgroup.com
Founded in 1986, Omnicom Group is a strategic
holding company..... Omnicom Group includes:
BBDO Worldwide- BBDO
Worldwide has 287 offices in 77
countries. BBDO won the most Lions
at Cannes. BBDO does work for
Bayer AG, DaimlerChrysler, FedEx, GE,
Mars Inc., Motorola, PepsiCo, Procter
and Gamble and The Wm. Wrigley Jr.
Company. DDB Worldwide-DDB
Worldwide has 206 offices in 96
countries. In January 2006 Tribal DDB,
was named Adweek’s Interactive
Agency of the Year. In April 2006, DDB’s
McDonalds “I’m Lovin’ it” campaign was
awarded a Global EFFIE for the most
effective marketing communications
campaign and DDB won a total of 11
EFFIES.
TBWA Worldwide.
-TBWA has 239 offices in 75 countries.
TBWA clients are Absolut, Adidas,
Apple, Beiersdorf, Häagen-Dazs, Henkel,
Masterfoods, McDonald’s, Michelin,
Nissan and Sony PlayStation.
Omnicom Media Group (OMG) The Group consists of two full service
media companies,
OMD
Worldwide and
PHD Network, as well as
several media specialist companies.
2.WPP Group plc (NASDAQ:
WPPGY )
http://www.wpp.com
WPP Group has over 2000 offices in 106 countries.
Based on information from the WPP website,
Martin Sorrell established the group in 1985-86. He acquired ad agency
JWT, PR firm Hill
and Knowlton Inc and market research network
MRB Group,
in 1989
WPP bought
Ogilvy & Mather Worldwide, Ogilvy
Direct and Ogilvy
Public Relations Worldwide and Millward Brown and Research
International, in 1992 launches
CommonHealth, an international healthcare communications network,
later in the 1990's expands with
MindShare, in Europe and Asia
invests in Batey
Holdings, Singapore-based advertising group, Chime
Communications and Latin American media research business
IBOPE,
and forms strategic alliance with
Asatsu-DK Inc, Japan's third largest advertising agency
and acquires corporate identity
specialists
Lambie-Nairn, and sports marketing company
PRISM Group.
Last seven years
WPP bought
Y&R Advertising,
Burson-Marsteller,
Spafax
(in-flight media) and Premiere
Group (the sports marketing/sponsorship company), launches
Red Cell, form Mediaedge:cia
and Acquires majority interest in Korean advertising agency AD Venture
Worldwide, strengthens its presence in China and Taiwan and Korea.
Acquired
Bates
and formed GroupM
to oversee Group's media management. WPP also owns
AGB and Nielsen Media Research, Grey
Global Group outdoor
media company Kinetic.
Recently, WPP acquired,
TAPSA group to expand operations in Spain.
The top adverting clients for WPP include Alteria,
American Express, BAT, Ford, GlazoSmithKline, IBM, Microsoft, Proctor&
Gamble, Pfizer, and Unilever.
3. The Interpublic Group of Companies, Inc. (NYSE: IPG)
http://www.interpublic.com
According to Reuters, Interpublic is " organized into five divisions
and a group of stand-alone agencies that are grouped into two reportable
segments, IAN and CMG. Within the IAN segment, McCann Worldgroup,
Draftfcb, Lowe Worldwide and Initiative provides an array of global
communications and marketing services, each offering a range of
solutions for the clients. CMG, which includes Weber Shandwick, MWW
Group, FutureBrand, DeVries, GolinHarris, Jack Morton, and Octagon
Worldwide, provides clients with diversified services, including public
relations, meeting and event production, sports and entertainment
marketing, corporate and brand identity and strategic marketing
consulting."
Interpublic's top clients are General Motors, Johnson & Johnson,
Microsoft, Unilever and Verizon.
4. Publicis Groupe S.A. (NYSE:
PUB) - http://www.publicis.fr
Publicis operates in over 200 cities in 104 countries. Publicis, Saatchi
& Saatchi and Leo Burnett provide the backbone for advertising
operations. Other companies in the Publicis group are Hal Riney, Burrell
Communications and Bromley Communications, Publicis Dialog, the
Facilities Group, Fallon, Bartle Bogle Hegarty (BBH), the Kaplan Thaler
Group,Marcel in Paris, ZenithOptimedia and Beacon Communications.
Publicis has started to expand into interactive and digital marketing
with the recent acquisition of Digitas and by acquiring a stake in Moxie
Interactive. Publicis launched Denuo, for consulting on and monitoring
of technologies and OnSpot Digital Network,
Pharmagistics, a digital and multi-channel marketing targeting doctors
and other practitioners. More international expansion is forecast with
the acquisition of Yong Yang (China) a marketing services agency
with 29 offices in China. Revenue and Clients are noted in this
press release.
U.S.
Agency Revenue Jumps 8.8% to $28.2 Billion
Sea Change: Internet Drives Marketing- Services Gains; JWT Top U.S.
Agency Brand; Dentsu Leads World Chart
By
Bradley Johnson
Published: April 30, 2007 Ad Age
CHICAGO (AdAge.com) -- Revenue for U.S. marketing-communications
agencies jumped 8.8% to $28.2 billion in 2006, the strongest growth
since ad spending began to rebound from recession in 2002.
The hot growth came from marketing services, fueled by digital.
Traditional ad agencies, grappling with a shift from old media, saw
tepid growth.
.....
In 2006, U.S. agencies collectively generated less than half of their
revenue -- 46.4% -- from traditional advertising and media
planning/buying, with the rest coming from a range of marketing services
including digital/interactive, direct marketing, sales promotion, health
care and PR. Marketing services grabbed 53.6% of U.S.
marketing-communications agency revenue. That was up from 51.5% in 2005,
the first year that marketing services topped advertising/media.
Impact of interactive
What's behind the change? No surprise: the internet. U.S.
interactive-agency revenue rocketed 23.1%, driving the increase in
marketing services. But digital is more than interactive shops; it's an
integral part of marketing services from direct to promotion.
"Interactive is huge," says Chris Weil, chairman-CEO of Momentum
Worldwide, a promotions agency owned by Interpublic Group of Cos. "If
anybody in marketing is not a big part of interactive, they won't be
around much longer."
Traditional advertising certainly is under pressure. The 4.2% U.S.
revenue growth for traditional advertising/media agencies roughly tracks
with ad spending: U.S. measured spending on traditional media last year
grew a soft 3.2%, according to TNS Media Intelligence data.
Among key points from the Agency Report:
- Dentsu ranked as world's largest consolidated agency network,
with 2006 revenue of nearly $2.5 billion. The consolidated-network
ranking is new this year, and adds up the revenue of ad agencies and
allied marketing-services ventures, excluding media, health care,
market research and public relations.
- WPP Group's JWT was the No. 1 U.S. agency with estimated revenue
of $445 million from traditional advertising, followed closely by
BBDO and McCann. The trio has always been near the top. In the first
Agency Report, in 1945, the three shops ranked Nos. 1, 6 and 4.
JWT's estimated 1944 U.S. revenue: $9 million, or $101 million after
adjusting for inflation.
- Omnicom's Rapp Collins Worldwide ranks as the top
marketing-services agency.
- AQuantive's Avenue A/Razorfish was the No. 1 interactive agency.
AQuantive ranked as the ninth-largest marketing organization,
becoming the first interactive operation to crack the top 10.
- Omnicom, WPP, Interpublic and Publicis accounted for 52.6% of
revenue for U.S. marketing-communications services. The Big Four's
combined U.S. revenue was split evenly between advertising/media
(50.8%) and marketing services (49.2%).
- Reliance on traditional advertising varies widely by company.
Omnicom last year generated just 42.8% of worldwide revenue from
traditional advertising/media, lowest among the top four; Publicis
drew 70% of revenue from traditional advertising/media, highest
among the four.
- The $1.3 billion purchase of Digitas by Publicis was the largest
acquisition over the past year by a marketing organization, but it
was far from the only digital deal. Since January 2006, the Big Four
have bought, or made investments in, more than 20 interactive
ventures.
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