advertising advertising marketing marketing services services agencies agencies U S U S advertising advertising business business 263 8 263 8 billion billion in in media media expenditures expenditures 2004 2004 estimate estimate 5 000 5 000 agencies agencies 243 000 243 000 people people employed employed New New York York and and Chicago Chicago still still dominate dominate agency agency billing billing by by city city New York Chicago Los Angeles Detroit Minneapolis San Francisco Boston Dallas Atlanta Philadelphia 61 264 4 17 379 9 10 545 6 7 946 3 6 087 2 5 101 9 3 993 7 3 234 8 2 620 9 2 379 6 2001 Dollars in millions Source AdAge com major major types types of of agencies agencies mega agency mega agency groups groups national national regional regional 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 Omnicom Omnicom Group Group Three Three agency agency networks networks BBDO BBDO Worldwide Worldwide 1 062 7 1 062 7 million million 3 400 3 400 U S U S employees employees 20 500 20 500 worldwide worldwide employees employees DDB DDB Worldwide Worldwide 815 0 815 0 million million 15 000 15 000 U S U S employees employees TBWA TBWA Worldwide Worldwide 665 9 665 9 million million 8 700 8 700 U S U S employees employees 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 most most national national and and regional regional agencies agencies are are 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 Top Top 10 10 U S U S Agency Agency Brands Brands Ranked Ranked by by core core advertising advertising revenue revenue millions millions J J Walter Walter Thompson Thompson Co Co WPP WPP 476 5 476 5 Leo Leo Burnett Burnett Worldwide Worldwide Publicis Publicis 362 7 362 7 McCann Erickson McCann Erickson Worldwide Worldwide Interpublic Interpublic 320 8 320 8 BBDO BBDO Worldwide Worldwide Omnicom Omnicom 272 0 272 0 Ogilvy Ogilvy Mather Mather Worldwide Worldwide WPP WPP 249 3 249 3 DDB DDB Worldwide Worldwide Communications Communications Omnicom Omnicom 248 1 248 1 Grey Grey Worldwide Worldwide WPP WPP 231 9 231 9 Foote Foote Cone Cone Belding Belding Worldwide Worldwide Interpublic Interpublic 225 1 225 1 Y Y R R Advertising Advertising WPP WPP 192 5 192 5 Publicis Publicis Worldwide Worldwide Publicis Publicis 184 7 184 7 Source 2005 Ad Age Agency Report Omnicom Omnicom Agency Agency Brands Brands Della Della Femina Femina Rothschild Rothschild Jeary Jeary Partners Partners GMMB GMMB Goodby Goodby Silverstein Silverstein Partners Partners GSD M GSD M Merkley Merkley Newman Newman Harty Harty Partners Partners Zimmerman Zimmerman Partners Partners specialized niche specialized niche agencies agencies ethnic ethnic agencies agencies Omnicom Omnicom Ethnic Ethnic Agencies Agencies Hispanic Hispanic Del Del Rivero Rivero Messianu Messianu DDB DDB Dieste Dieste Harmel Harmel Partners Partners Ad Ad Age Age multicultural multicultural shop shop of of the the year year African American African American Footsteps Footsteps specialized niche specialized niche agencies agencies ethnic ethnic agencies agencies internet internet agencies agencies Omnicom Omnicom Internet Interactive Internet Interactive Martin Williams Martin Williams Tribal Tribal DDB DDB specialized niche specialized niche agencies agencies ethnic ethnic agencies agencies internet internet agencies agencies business to business business to business agencies agencies Omnicom Omnicom B to B B to B Doremus Doremus Co Co split split from from Dow Dow Jones Jones Co Co in in 1991 1991 specialized niche specialized niche agencies agencies 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 Omnicom Omnicom Creative Design Creative Design Arnell Arnell Group Group brand brand identification identification 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 Omnicom Omnicom Unbundled Unbundled OMD OMD Worldwide Worldwide 80 80 offices offices 45 45 countries countries Global Global media media partner partner of of BBDO BBDO Worldwide Worldwide DDB DDB Worldwide Worldwide TBWA TBWA Worldwide Worldwide DAS DAS agencies agencies other other suppliers suppliers 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 agency in house in house agencies agencies advantages advantages disadvantages disadvantages familiarity familiarity specialization specialization fast fast service service cost cost savings savings confidentiality confidentiality from from the the gap s gap s house house agency agency in house in house agencies agencies advantages advantages disadvantages disadvantages familiarity familiarity specialization specialization fast fast service service cost cost savings savings confidentiality confidentiality objectivity objectivity resources resources fresh fresh ideas ideas