JOMC JOMC 170 170 Advertising Advertising Agencies Agencies 05AdAgencies ppt 05AdAgencies ppt the the first first advertising advertising agents agents 1843 1843 Volney Volney Palmer Palmer agent agent for for media media not not advertisers advertisers 1864 1864 George George P P Rowell Rowell the the johnny johnny appleseed appleseed of of advertising advertising Rowell s Rowell s American American Newspaper Newspaper Directory Directory space space wholesaler wholesaler shared shared his his secret secret 1888 1888 Printer s Printer s Ink Ink the the first first advertising advertising agency agency N W N W Ayer Ayer Son Son founded founded in in 1864 1864 by by Francis Francis W W Ayer Ayer 20 20 son son made made the the business business seem seem more more established established worked worked for for advertiser advertiser slogan slogan keeping keeping everlastingly everlastingly at at itit brings brings success success 44 full service full service agency agency functions functions today today full service full service agencies agencies provide provide the the following following account account management management creative creative media media planning planning and and media media placement placement media media buying buying research research many many adding adding below below the the line line services services PR PR sales sales promotion promotion Interactive Interactive U S U S agency agency business business today today over over 285 1 285 1 billion billion in in media media billings www mccann com billings 2006 2006 www mccann com over over 5 000 5 000 agencies agencies over over 243 000 243 000 people people employed employed New New York York and and Chicago Chicago dominate dominate agency agency billing billing by by city state city state City Billings City Billings in in Millions Millions New New York York 61 264 4 61 264 4 Chicago Chicago 17 739 9 17 739 9 Los 10 545 6 Los Angeles Angeles 10 545 6 Detroit 7 946 3 Detroit 7 946 3 Minneapolis 6 087 2 Minneapolis 6 087 2 San 5 101 9 San Francisco Francisco 5 101 9 Boston 3 993 7 Boston 3 993 7 Dallas 3 234 8 Dallas 3 234 8 Atlanta 2 620 9 Atlanta 2 620 9 Philadelphia 2 379 6 Philadelphia 2 379 6 Source Source Source Ad Age Age 2001 2001 Source Ad major major types types of of agency agency mega agency mega agency groups groups independent independent agencies agencies national national regional regional and and local local specialized niche specialized niche agencies agencies agency agency service service suppliers suppliers media media buying buying creative creative services services mega agency mega agency groups groups prompted prompted by by mergers mergers and and client client globalization globalization financial financial pressures pressures service service multinational multinational accounts accounts subsidiaries subsidiaries provide provide IMC IMC martin sorrell integrated integrated marketing marketing chairman WPP communication communication services services 55 top top mega agency mega agency groups groups OmniCom Group 4 15 billion WPP Group 3 64 billion Interpublic Group 3 38 billion Dentsu Japan 1 98 billion Young Rubicam 1 49 billion 1997 55 top top mega agency mega agency groups groups WPP Group including Y R Omnicom Group 6 69 billion Interpublic Group 5 08 billion Havas 2 39 billion Publicis including Saatchi 2 17 billion 5 74 billion 1999 55 top top mega agency mega agency groups groups WPP Group including Y R Omnicom Group 7 9 billion Interpublic Group 6 6 billion Dentsu 3 1 billion Havas 2 76 billion 6 9 billion 2000 55 top top mega agency mega agency groups groups Omnicom Group WPP Group Interpublic IPG Publicis 8 62 billion 6 76 billion 5 86 billion 4 41 billion Including Leo Burnett Dentsu Japan Havas Advertising 2 55 billion 1 88 billion 2003 55 top top mega agency mega agency groups groups Omnicom Group WPP Group with Grey Interpublic Publicis Dentsu Japan Havas Advertising 10 48 billion 10 03 billion 6 27 billion 5 11 billion 2 89 billion 1 81 billion 2005 55 top top mega agency mega agency groups groups Together the five international megaagencies are now 75 of worldwide billings 6 18 25 16 17 Omnicom WPP IPG Publicis Other Havas 18 Source Ad Age 2004 mega agency mega agency pros pros cons cons positives positives larger larger talent talent pool pool negotiating negotiating clout clout financial financial rewards rewards account account security security competitive competitive edge edge strong strong partnerships partnerships more more services services international international link link negatives negatives people people vs vs profit profit creativity creativity vs vs size size conflict conflict of of interests interests people people business business national national regional regional local local these these are are independent independent agencies agencies there there are are now now fewer fewer national national agencies agencies which which are are not not part part of of mega agency mega agency groups groups regional regional and and local local agencies agencies work work with with smaller smaller clients clients who who are are usually usually located located nearby nearby 10 10 top top U S U S ad ad agencies agencies Top Top independent independent U S U S agencies agencies specialized niche specialized niche agencies agencies industry industry specialists specialists specialized niche specialized niche agencies agencies industry industry specialists specialists ethnic ethnic agencies agencies specialized niche specialized niche agencies agencies industry industry specialists specialists ethnic ethnic agencies agencies internet internet agencies agencies specialized niche specialized niche agencies agencies industry industry specialists specialists ethnic ethnic agencies agencies internet internet agencies agencies business to business business to business agencies agencies creative creative boutiques boutiques and and design design houses houses other other suppliers suppliers provide provide unbundled unbundled services services one one part part of of what what an an agency agency does does media media buying buying services services freelancers freelancers consultants consultants production production companies companies in house in house or or house house agencies agencies agencies agencies owned owned by by clients clients in house in house agencies agencies advantages advantages disadvantages disadvantages from from the the gap s gap s house house agency