Media: Top 50 Media Agencies

MediaCom comfortably retained its position as the UK's biggest agency for the sixth year running. The ballooning budget of flagship client Sky, which significantly increased its marketing spend in 2007 to offset the launch of Virgin Media, was key to this growth. Business wins, including Eos Airlines, eBookers and Great Ormond Street Hospital, also helped to ensure a solid performance for Group M's biggest agency.

Group M posted a 7.7% increase in billings by holding company. The phenomenal buying power of its agencies has made it imperative that its rivals differentiate themselves, and the year brought continued investment in digital strategy and content creation.

Tom George, chief executive of Mediaedge:cia - Marketing's media agency of the year 2007 - says that the agency landscape has evolved significantly over the past 12 months as the scope of business has broadened. 'Media agencies are increasingly involved in a much greater range of activities, from econometrics to website navigation and search,' he adds.

Agencies certainly need a greater range of resources to compete, but as procurement becomes omnipresent even in small pitches, many independent operators believe the traditional media agency market is becoming ever-more price-led.

However, Nick Theakstone, chief operating officer of Group M, maintains that although the agencies in the biggest buying units are thriving, it is not just a question of purchasing power. 'Buying is only one part of the business; the real growth spurt is agency-driven. They own the client relationships, and they drive the business forward. We are really just a support mechanism,' he says.

In new business terms, 2007 was a relatively quiet year. Big domestic account moves included Coca-Cola consolidating its planning and buying into Vizeum, while on the global front Carat scooped Mattel's £125m account from MindShare, and picked up Johnson & Johnson's European business.

TOP MEDIA AGENCIES

07 06 2007 % Selection of highest-
rank Agency billings diff spending clients*
(pounds m)

1 1 MediaCom 984.88 7.9 BSkyB, Boots, Procter &
Gamble, T-Mobile
2 2 OMD 860.00 9.1 Reckitt Benckiser,
Vodafone, Virgin Media,
McDonald's
3 3 MindShare Media UK 723.37 -2.2 Argos, Hutchinson 3G UK,
Homebase
4 4 Starcom UK Group 658.05 -0.6 Cadbury, Associated
Newspapers, Interbrew,
Capital One
5 5 Carat 648.51 4.9 British Gas, Beiersdorf UK,
Dell, Abbey
6 6 ZenithOptimedia 565.58 -3.5 L'Oreal Paris, Masterfoods,
B&Q, 02
7 8 Mediaedge:cia UK 408.86 28.1 Morrisons, Specsavers,
(MEC UK) Nintendo UK, Danone
8 7 Initiative Media 277.12 -25.6 Orange, Tesco, Johnson &
London Johnson, Pfizer Consumer
Healthcare
9 9 Walker Media 267.21 4.0 Marks & Spencer, Currys, PC
World, Barclays
10 11 PHD 243.20 3.3 Sainsbury's, Yell, Warner
Bros Distribution UK, eBay
11 10 Universal McCann UK 227.38 -4.0 SC Johnson, Coca-Cola GB,
Aldi, Microsoft
12 12 Vizeum UK 167.33 2.1 Halifax, BMW UK, Coca-Cola
GB, Heinz
13 13 MediaVest Manchester 150.56 9.9 Land of Leather, Vivid
Imaginations, Bradford
Exchange
14 14 Brilliant Media 123.03 -1.5 DFS, Carpetright, Moben
Kitchens, Safestyle UK
15 15 Media Planning Group 110.16 21.2 WM Magner, Thomson,
Thomsonfly, Ask
16 18 Booth Lockett Makin 72.69 24.2 Setanta Sports, Suzuki,
(now BLM) Young's Seafood, Brittany
Ferries
17 17 Feather Brooksbank 56.95 -11.2 Matalan, Hastings Direct,
Reid Furniture Group,
Scottish Power
18 21 BJK&E Media 55.93 23.3 Mercedes-Benz UK, Chrysler
UK, Betfair, Canon UK
19 16 Zed Media 55.84 -15.3 Tiscali, Zurich Insurance,
Gocompare.com, Scottish
Widows
20 19 John Ayling & 55.33 5.8 Dairy Crest, Yoplait, First
Associates Drinks Brands, H Samuel
21 24 WWAV Rapp 46.35 28.6 Somerfield, AXA Sun Life
Collins Media Direct, NSPCC, Debt Free
Direct
22 22 AMS Media Group 38.83 -1.5 Red Bull, Constellation
Europe, Royal Caribbean,
Gaymers
23 23 All Response Media 36.31 -5.4 JML Direct, BGR Bloomer,
MBI Incorporated, Anglican
Group
24 26 Total Media Group 36.19 5.7 Random House Publishing,
Travelsphere, Ubisoft,
Penguin Group
25 29 Target Media 35.92 48.3 Momentum Pictures, Icon
Film Distributions,Play.com
26 28 Equinox 33.90 39.2
Communications
27 20 Kinetic 32.53 -34.3
28 27 Rocket 30.65 -6.5
29 45 Media Vision 26.81 80.2
30 35 Posterscope 25.86 17.9
31 34 Team UK Media 24.61 12.1
32 32 Ptarmigan Media 24.39 8.1
33 31 Bygraves Bushell 23.51 3.9
Valladares Sheldon
34 25 Media Campaign 22.35 -36.2
35 30 Bray Leino 22.10 -6.9
36 40 Robson Brown 21.02 33.2
37 33 Matters Media 20.90 -6.9
38 37 AW Media 18.29 8.7
39 42 T.M.W (The Media 17.85 15.6
Works)
40 58 WFCA Integrated 16.92 78.4
41 41 TCS Media 16.85 8.9
42 65 McCutcheon Norveil 16.80 127.2
Consultancy
43 59 Conrad Advertising 15.25 74.5
44 49 Mediavest (Leeds) 14.86 14.6
45 46 Mike Colling & 14.65 10.5
Company
46 44 Dewynters Plc 14.26 -4.6
47 36 Ekay Advertising 14.12 -27.7
& Marketing
48 50 Sold Out Advertising 13.71 12.5
49 43 The Gate Worldwide 13.60 -10.1
50 48 Attinger Jack 13.54 2.7
Advertising

Source: Nielsen Media Research
*client list refers to 2006

HOW THE TOP 100 IS COMPILED

The compilation of the Top 100 tables is an ongoing process. Three months before publication, agencies on Nielsen Media Research's database were emailed and asked to update their billings and give details of account moves, although updating billings/account move data does not in itself guarantee inclusion. Last year, however, some agencies were late in updating their data, so some 2006 billings printed in this edition - now corrected - will be different from 2006 billings in last year's Top 100.

The media measured in all tables in the report are television, display press, radio, cinema and outdoor (excluding airports, ambient, international sites or point of sale). Direct marketing and internet spend are not included, hence the low billings for most of the direct marketing agencies featured.

Agency client assignments are compiled by Nielsen Media Research from data supplied on a regular basis by agencies and media owners, and information published in the marketing press. The figures are estimated costs of buying media space based on a number of factors including ratecard, discounts and viewing figures. Data does not include actual billings or agency revenues. Press expenditures include an Advertising Association discount factor, which varies according to the sector and quarter.

Not surprisingly, agencies lobby hard to influence the way data is presented. The Top 100 tables, school reports and scores can affect everything from share prices and client perceptions to staff motivation. Nonetheless, the objective representation of the dynamic agency market is crucial, so the tables are checked rigorously and analysed to ensure the data presented is a fair reflection of the information provided.

Nielsen Media Research has listed agencies according to their trading names in 2007. In order for agency brands to be reported as a single listing within the table, the agencies need to have provided Nielsen Media Research with unequivocal proof that they are recognised as one legal entity, which is then checked at Companies House.

The Top 100 has been affected by the Sarbanes-Oxley Act in the US, which prohibits the public release of unaudited financial information. Sarbanes-Oxley has led agencies owned by public holding companies listed in the US, such as Omnicom, Interpublic and WPP, to withhold financial data, hence the absence of declared billings and income data this year.

- Mediaedge:cia was the agency with the biggest change in billings, with an increase of almost £100m, spearheaded by strong new business performance.

- While digital and search remained significant areas of expansion for agencies, the development of new disciplines was key. Word of mouth was one such area, with MediaCom and ZenithOptimedia both launching dedicated divisions for the medium in 2007.

- Initiative experienced the biggest drop in billings, losing almost £100m. This decline was compounded by the loss of Johnson & Johnson's global business.

KEY WINS
Mediaedge:cia
BT
MediaCom
Bose
OMD
Royal Mail

KEY LOSSES
Initiative
Johnson & Johnson
ZenithOptimedia
Paramount Pictures
MindShare
Mattel

FACT FILE - CENTRAL BUYING UNITS

Group M (WPP) MediaCom, MindShare, Mediaedge:cia, BJK&E
Publicis Groupe Starcom Mediavest, ZenithOptimedia,
Media MediaVest Manchester (19.9%), Zed Media
Opera (Omnicom) OMD, PHD Group, WWAV Rapp Collins
Media
Aegis Media Carat, Vizeum, Feather Brooksbank
Magna Global Initiative, Universal McCann
(Interpublic)
Havas Media Media Planning Group, Arena BLM,
All Response Media