PowerPoint PresentationU.S. advertising businessagency billing by citymajor types of agencies:mega-agency groupsSlide 6Omnicom Groupmega-agency pros & consnational, regional & localTop 10 U.S. Agency Brands Ranked by core advertising revenue - $millionsOmnicom Agency Brandsspecialized/niche agenciesOmnicom Ethnic AgenciesSlide 14Omnicom Internet/InteractiveSlide 16Omnicom B-to-BSlide 18Omnicom Creative/Designother suppliersOmnicom “Unbundled”Slide 22in-house agenciesSlide 24Slide 252 primary roles of agenciesidea generationbrand-buildingSlide 29Slide 30Slide 31Slide 32Slide 33Slide 34Slide 35advertising & advertising & marketing services marketing services agenciesagenciesadvertising & advertising & marketing services marketing services agenciesagenciesU.S. advertising businessU.S. advertising businessU.S. advertising businessU.S. advertising business $263.8 billion in media $263.8 billion in media expendituresexpenditures(2004 estimate)(2004 estimate) 5,000+ agencies5,000+ agencies 243,000+ people employed243,000+ people employed New York and Chicago New York and Chicago still dominatestill dominate $263.8 billion in media $263.8 billion in media expendituresexpenditures(2004 estimate)(2004 estimate) 5,000+ agencies5,000+ agencies 243,000+ people employed243,000+ people employed New York and Chicago New York and Chicago still dominatestill dominateagency billing by cityagency billing by cityagency billing by cityagency billing by cityNew YorkNew York$61,264.4$61,264.4ChicagoChicago17,379.917,379.9Los AngelesLos Angeles10,545.610,545.6DetroitDetroit7,946.37,946.3MinneapolisMinneapolis6,087.26,087.2San FranciscoSan Francisco5,101.95,101.9BostonBoston3,993.73,993.7DallasDallas3,234.83,234.8AtlantaAtlanta2,620.92,620.9PhiladelphiaPhiladelphia2,379.62,379.62001.Dollars in millions.Source: AdAge.commajor types of agencies:major types of agencies:major types of agencies:major types of agencies: mega-agency groupsmega-agency groups national, regional, local national, regional, local specialized/niche agenciesspecialized/niche agencies agency service suppliersagency service suppliers media buying, creative servicesmedia buying, creative services mega-agency groupsmega-agency groups national, regional, local national, regional, local specialized/niche agenciesspecialized/niche agencies agency service suppliersagency service suppliers media buying, creative servicesmedia buying, creative servicesmega-agency groupsmega-agency groupsmega-agency groupsmega-agency groups prompted by mergers and prompted by mergers and client globalizationclient globalization financial pressures financial pressures prompted by mergers and prompted by mergers and client globalizationclient globalization financial pressures financial pressures martin sorrell,chairman WPP service multinational service multinational accountsaccounts subsidiaries provide subsidiaries provide “IMC” “IMC” (integrated marketing (integrated marketing communication) services communication) services service multinational service multinational accountsaccounts subsidiaries provide subsidiaries provide “IMC” “IMC” (integrated marketing (integrated marketing communication) services communication) servicesOmnicom GroupOmnicom GroupOmnicom GroupOmnicom GroupThree agency networks Three agency networks BBDO Worldwide BBDO Worldwide $1,062.7 million / 3,400 U.S. employees / $1,062.7 million / 3,400 U.S. employees / 20,500 worldwide employees20,500 worldwide employeesDDB Worldwide DDB Worldwide $815.0 million / 15,000 U.S. employees$815.0 million / 15,000 U.S. employeesTBWA Worldwide TBWA Worldwide $665.9 million / 8,700 U.S. employees$665.9 million / 8,700 U.S. employeesThree agency networks Three agency networks BBDO Worldwide BBDO Worldwide $1,062.7 million / 3,400 U.S. employees / $1,062.7 million / 3,400 U.S. employees / 20,500 worldwide employees20,500 worldwide employeesDDB Worldwide DDB Worldwide $815.0 million / 15,000 U.S. employees$815.0 million / 15,000 U.S. employeesTBWA Worldwide TBWA Worldwide $665.9 million / 8,700 U.S. employees$665.9 million / 8,700 U.S. employeesmega-agency pros & consmega-agency pros & consmega-agency pros & consmega-agency pros & cons positives:positives: larger talent poollarger talent pool negotiating cloutnegotiating clout financial rewardsfinancial rewards account securityaccount security competitive edgecompetitive edge strong partnershipsstrong partnerships more servicesmore services international linkinternational link positives:positives: larger talent poollarger talent pool negotiating cloutnegotiating clout financial rewardsfinancial rewards account securityaccount security competitive edgecompetitive edge strong partnershipsstrong partnerships more servicesmore services international linkinternational link negatives:negatives: people vs. profitpeople vs. profit creativity vs. sizecreativity vs. size conflict of conflict of interestsinterests people businesspeople business negatives:negatives: people vs. profitpeople vs. profit creativity vs. sizecreativity vs. size conflict of conflict of interestsinterests people businesspeople businessnational, regional & localnational, regional & localnational, regional & localnational, regional & local most most nationalnational and and regionalregional agencies agencies are part of mega-agency groupsare part of mega-agency groups regionalregional and and local agencies local agencies work with work with smaller clients who are usually located smaller clients who are usually located nearbynearby most most nationalnational and and regionalregional agencies agencies are part of mega-agency groupsare part of mega-agency groups regionalregional and and local agencies local agencies work with work with smaller clients who are usually located smaller clients who are usually located nearbynearbyTop 10 U.S. Agency BrandsTop 10 U.S. Agency BrandsRanked by core advertising revenue - $millionsRanked by core advertising revenue - $millionsTop 10 U.S. Agency BrandsTop 10 U.S. Agency BrandsRanked by core advertising revenue - $millionsRanked by core advertising revenue - $millionsJ. Walter Thompson Co. (WPP) - 476.5J. Walter Thompson Co. (WPP) - 476.5Leo
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