How the media agency networks stack up post Publicis-Omincom merger as per RECMA

01 Aug,2013

 

By A Correspondent

 

Leading media agency research firm RECMA has released its Global Ranking 2012. While India-specific numbers are important, in a globalised order, the overall numbers are also noteworthy.

 

A little background: since 1999, RECMA has been publishing annually the Global Billings Rankings report standing as the flagship report for the media agency industry. All major advertisers (media / procurement managers), consultants or media agencies use the global, regional or country rankings in their day-to-day business activities.

 

This research is based on two metrics:

1- the measurement of the buying billings based on the compilation of agency client lists with adjusted ad monitored spending allocated to each account

2- the evaluation of non-measured media spending (or diversified services): a growing field which includes multiple areas from search to marketing strategy consulting.

 

Five years ago, the sum of buying billings + specialized services (including digital) got RECMA to produce a new ranking based on the “Overall Activity” volumes. Hence, from now on, the report will be entitled “Overall Activity” – the term Billings (referring to buying media) being dropped.

 

Notes a mail from the Paris-based founder Eudes Delafon and Olivier Gauthier, Partner, Director of Research and Sales Development Director: “Among the several improvements of this research, we paid a careful attention to the growth rates y-o-y to adjust the estimated Overall Activity volumes. This new point of analysis is now used as one of the 20 criteria in RECMA Qualitative Evaluations by country – a key benchmark for all industry professionals.

 

Following the release of this report, we are updating the 50 country Qualitative Evaluations, starting with the Top 14 countries (to be available by the end of August). Details about the breakdown between buying Billings and Digital / Diversified services are not contained in this report. The Domestic reports as well as the Specialized Resources global report will provide data and analysis on this point.

 

In the wake of the announcement that Publicis and Omnicom are merging, Recma has release a second table showing “how this historical deal overturns the hierarchy of the Groups of media networks”. Given the interest in the information, we place this table first.

 

Industry shares 2012 in 6 regions
following the creation of Publicis Omnicom group

 

The Industry shares are calculated on the basis of the media agency Industry measured by RECMA.

RECMA estimates Overall activity figure consisting in the aggregation of: buying billings (measured media spending) + non-measured spending (Digital & Diversified service).

COMMENTS

In Asia Pacific and in Others EMEA, the media arms of Publicis Omnicom group and WPP would hold a similar share.

In Americas, Publicis Omnicom group would become a strong leader with a projected industry share of 41.6% versus 21.7% for WPP/GroupM.

GroupM would remain the No 1 group in the Top 5 Europe markets, staying ahead of POG by four points.

Finally, in the 14 countries (representing 75% of the media industry worldwide) the new POG media entity would weigh 36.8% of the industry against 27.1% for WPP/ GroupM: a 10-point gap.

The three other groups, Dentsu Aegis Network, IPG/ Mediabrans and Havas Media-clearly stand a step behind.

 

OVERALL ACTIVITY [BILLINGS] 2012 – Edition 13

GLOBAL RANKING 2012 BY NETWORK

 

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