Mixed Fortunes For Leading Agencies In 2002/3
AMV BBDO has consolidated its position as the UK’s largest advertising agency with billings of £345 million in the twelve months to the end of June, according to figures from Nielsen Media Research published by Campaign.
McCann-Erickson remains in second place on the earnings list but is closely followed by J. Walter Thomson which saw billings increase by more than 25%, partly as a result of increased business from Vodafone. However, the likes of Leo Burnett and Saatchi & Saatchi recorded double figure declines.
The only new entrant in the top ten was TBWA/London which garnered £210 million in the space of a year. It replaced Bates UK which has borne the brunt of the crisis at Cordiant Communications (see Cordiant Revenues Dip 11% In 2002, Disposals Underway) and has now been amalgamated into the WPP empire (see WPP Completes Cordiant Acquisition).
| Top 10 UK Advertising Agencies (In Year To June) | ||||
| Agency | 2002 billings (£m) | 2003 billings (£m) | Actual Change | % Change |
| Abbott Mead Vickers BBDO | 374.6 | 345.1 | -29.6 | -7.9 |
| McCann-Erickson | 292.5 | 301.2 | 8.7 | 3.0 |
| J. Walter Thompson | 226.4 | 284.6 | 58.2 | 25.7 |
| Publicis | 227.3 | 276.3 | 49.0 | 21.6 |
| Ogilvy & Mather | 263.8 | 263.6 | -0.1 | -0.1 |
| M&C Saatchi | 199.9 | 259.1 | 59.2 | 29.6 |
| Lowe | 259.0 | 247.3 | -21.7 | -4.5 |
| Leo Burnett | 268.4 | 217.1 | -51.4 | -19.1 |
| Saatchi & Saatchi | 239.0 | 211.0 | -27.9 | -11.7 |
| TBWA/London | 160.3 | 210.3 | 49.9 | 31.1 |
| Source: Nielsen Media Research, August 2003 | ||||
Media agencies Seven out of the top ten media agency groups have posted gains since June 2002 with combined billings up by 10.6% in that time.
Following the merger of Publicis’ UK media shops, ZenithOptimedia has leapfrogged MediaCom to move into the number one spot. However, the latter has experienced a 23% rise in billings since June 2002. OMD UK, Starcom Motive and Universal McCann also posted increases in excess of 20%.
While there is growing confidence over the state of the media economy, billings growth have been largely attributed to new business rather than increased spending by existing clients.
| Top 10 UK Media Agency Groups (In Year To June) | ||||
| 2002 billings (£m) | 2003 billings (£m) | Actual Change | % Change | |
| ZenithOptimedia | 664.8 | 644.8 | -20.0 | -3.0 |
| MediaCom | 489.1 | 601.4 | 112.3 | 23.0 |
| Carat | 557.1 | 541.5 | -25.6 | -2.8 |
| MindShare | 468.9 | 511.8 | 42.9 | 9.2 |
| OMD UK | 312.7 | 435.3 | 122.6 | 39.2 |
| Starcom Motive | 323.7 | 391.2 | 67.4 | 20.8 |
| Initiative Media | 327.3 | 387.9 | 60.7 | 18.5 |
| Universal McCann | 257.5 | 314.3 | 56.8 | 22.1 |
| PHD | 274.9 | 282.6 | 7.8 | 2.8 |
| Starcom MediaVest | 271.8 | 254.2 | -27.5 | -6.5 |
| Source: Nielsen Media Research, August 2003 | ||||