The much-regarded billings report for India has been released by RECMA. The Indian media agency business grew 12 percent in 2011 with a total billings of US$ 5644 million.
Group M’s Mindshare media agency tops RECMA’s India billings report for 2011 with US$ 1055million, growing 10 percent over its 2010 billings. Madison Media is second 630mn, growing 15 percent. Maxus, Loderstar UM and Lintas Media Group are rank third, fourth and fifth respectively.
ZenithOptimedia saw the highest growth with 40 percent over the previous year, as per the RECMA report. At least three agencies saw a degrowth. Media Direction went down 29 percent, MPG down 20 percent and TME dropped 15 percent.
The combined billings of Dentsu and Aegis agencies Carat and Vizeum would put the new entity at #11 with US$ 250 million.
Last week, MxMIndia had reported RECMA’s global billings data and rankings (see Link: http://www.mxmindia.com/2012/07/starcom-tops-recmas-global-billings-rankings-omd-is-2/).
Media agency analyst RECMA has announced the publication of the 13th edition of its Global Billings Rankings report. As many as 865 agencies in 61 countries were evaluated and all the data (10 different indicators for each agency) were consolidated in a pivot table.
Industry indicators point to a sustained growth (+9.2 per cent)Â – a lower rate than in 2010 though (+13.8 per cent) – partly fueled by the continuing development of Digital activities within the agency core business.
In the global network ranking 2011, Starcom MediaVest Group holds the lead it took over OMD last year but with a very tiny gap (less than $0.2m). SMG increased its billings by +9 per cent (or +$2.8bn) while OMD posted a +9.8 per cent overall growth (or +$3bn).
Four networks recorded a double digit growth (vs. 11 networks last year): Maxus (+43.6 per cent), PHD (+17.5 per cent),ZenithOptimedia (+11.1 per cent) and Carat (+10.1 per cent).
As the undisputable industry leader, GroupM showed a below-the-average growth rate with uneven performances across the regions: low billings increase in the USA(+5 per cent vs. +10 per cent on average) but high in Asia-Pacific (+$2.3bn).
Internal hierarchy of the four WPP media networks remains unchanged: Mindshare, MediaCom, MEC and Maxus. The latter increasing its share thanks to strong performances in the USA (where it has doubled its billings), the UK and Germany.
On July 12, Aegis agreed to be acquired by Dentsu. The takeover of Aegis by Dentsu provides is a perfect geographical fit and does not have any impact in the billings tables of this report.
However the addition of Dentsu Media Japan to Aegis Media’ global billings would allow this new Group to reach the third rank ahead of Omnicom Media Group (statement based on an estimated billing figure of $bn 10 for Dentsu Media Japan (about a quarter vadpends).
The full report is accessible to subscribers at www.recma.com via My RECMA link.
Following the AKQA (a creative agency specializing in interactive marketing) acquisition by WPP, RECMA is pleased to announce the update of its latest USA report: the Top 112 digital agencies (published in July 2012).
This report provides advertisers, agencies and major players of the digital industry detailed Profile Cards and various rankings of the Top 112 largest US digital agencies (based on staff figures 2012). These detailed Profile Cards and hierarchies are increasingly required by international advertisers seeking to consolidate their digital account regionally or globally. RECMA is read and used by 85 global advertisers, which appreciate our objective, homogenous and accurate information
By investing $540 million, WPP bought one of the last independent digital jewel and has taken the lead in the industry. The RECMA report reveals the AKQA profile and the reasons why WPP offered such a package to Ajaz Ahmed and Tom Bedecarre.
Now the question is which are now the last independent digital leaders in the USA left on the shelves to be acquired and which group holds an overly limited share of the industry and needs to reach the necessary competitive size?
The table below shows the new WPP leadership in the USdue to the addition of the 600 US AKQA staffers. Previously WPP share was of 20.2, slightly behind Publicis 20.5.
Group M agency Maxus is on tops of the much-respected RECMA qualitative evaluation of Indian media agencies in April 2012. While Maxus has scored 17 points, Mindshare has 15 points, whereas Lintas Media has 13 points. Both Maxus and Mindshare have a ‘Dominant’ profile and LMG has a ‘Good profile’. These are cumulative points across four categories.
In competitive pitches, Maxus and LMG are found to be ‘successful’ and Mindshare is ‘stable’.
The RECMA study is done four times a year. In December 2011, the following were the standings: Maxus: 15 points (Dominant, successful), Lodestar UM 13 points (Good, successful) and Madison Media 13 points (Good variable).
And in December 2010, it was as follows: Maxus 17 (Dominant, successful), LMG 15 (Dominant, successful), Madison 12 (Dominant, stable).
When compared over three periods – April 2012 vs December 2011 vs December 2010 – the Benchmark points for the three leading agencies of April 2012 are: Maxus (0), Mindshare (+4) and and LMG (-2). Maxus has had the same points in December 2010 and April 2012, while Mindshare and LMG have seen a change of +4 and -2 respectively.
Ajit Varghese
“RECMA is an important achievement for our agency as it is the only study that is authentic and is backed by numbers. On a global level, it is the numbers that do the talking and we are happy to have been performing consistently well,” said Ajit Varghese, managing director, Maxus. “It gives us an edge over our competitors and shows that we are not just a flash in the pan; that we are a dominant and successful agency. Yes, competition is pushing us to perform harder but we have been successful each time and this can be seen by our consistent performance at the top.”
“Recma is an important benchmark for us as it is considered seriously by most advertisers around the world, ” said Lynn de Souza, chairman and CEO, Lintas Media Group. “It is based on hard facts and data and not like the other studies that are based on perception. Also, the study cannot be manipulated and is therefore genuine to stand by.”
Lynn de Souza
As many as 19 media agencies were ranked in April 2012 with scores from +17 to -9; following a decreasing classification from ‘Dominant’ to ‘Good profile’, ‘Average profile’ and ‘Low profile’. This ranking is combined with a New Business qualification: ‘successful’, ‘stable’ or ‘underperforming’.
This qualitative evaluation has been processed in 40 countries and gathers 14 criteria in four categories:
1- Competitiveness: mainly measured by pitches results over the last three years (including a 2012 trend).
2- Momentum measured by the activity growth, market shares growth over 3 years, new business activity and changes to the top management.
3- Resources in Digital and Diversified Services (outdoor, branded content, entertainment, sponsoring/events, multi-cultural, retail, econometrics, etc.) as well as geographical coverage.
4- Client Profile: number of big advertisers handled, number of local advertisers, share of the 1st client and the 3 biggest (exposure).
“The factors that have led us to achieve such a ranking include our ability in growing in new segments and our ability to retain big clients. Vodafone, Nokia are a few examples where we have managed to retain them despite they belonging to different agencies worldwide,” Mr Varghese added.
Said Ms de Souza:Â “We are pleased with our current performance at RECMA. We have topped the list of being the most ‘successful’ agency in the criterion of competitiveness,” This was largely due to our aggression in pitching for new clients and our ability to retain most accounts. There was a worry in 2011 when we lost one of our biggest clients in ITC but then we compensated for that loss by aggressively pitching for mid-sized clients and doing that specifically in Tier 2 and 3 towns and cities. Going by our strong performnace , I see ourselves becoming the No 1 or 2 agency at RECMA very soon.”
Mindshare India Leader Ravi Rao was in meetings and not available for comment at the time of writing.
The India Qualitative Evaluation report is the fifth edition, the first one having been released in October 2010. “The key benefit of this study is to provide advertisers a fresh picture of the competition throughout a qualitative assessment of the strengths and weaknesses of each player, ” said Eudes J. Delfaon, the Paris-based RECMA Founder and Director of Research and Michèle Le Bris, RECMA’s Regional Director APAC in Manila.
“Revised and updated on a quarterly basis, the RECMA domestic reports stand as a powerful benchmark essential to all industry professionals in order to get a good and accurate understanding of the media agency landscape and deliver relevant credentials in their presentations,” he added.
Following the AKQA (a creative agency specializing in interactive marketing) acquisition by WPP, RECMA is pleased to announce the update of its latest USA report: the Top 112 digital agencies (published in July 2012).
