Agency Consolidation

October 23, 2007 on 11:05 am | In Uncategorized | No Comments

Yesterday I was researching some of the figures on the advertising market.

This image is courtesy of AdAge.com. This image shows how consolidated the market is for media buying agencies.

http://en.wikipedia.org/wiki/WPP_Group_plc

WPP – Grey Global Group, Ogilvy & Mather Worldwide, Young & Rubicam, and JWT – PR (WPP)
Hill & Knowlton acquired via a hostile takeover in 1987, Ogilvy Public Relations Worldwide in 1989 for $864 million, Burson-Marsteller and Cohn & Wolfe.

http://en.wikipedia.org/wiki/Publicis

http://en.wikipedia.org/wiki/Omnicom_Group

http://en.wikipedia.org/wiki/Interpublic_Group_of_Companies

My Agency, Carat.com / Caratfusion.com is owned by the Aegis conglomerate. Its somewhat smaller regarding divisions, and is private, not public, but does have the 7th largest media budget.

http://www.aegisplc.com/ags/media/mediacontacts/

Aegis Media
Aegis Media
Carat
Isobar
Synovate

Great Information on Advertising Agencies:

http://adage.com/datacenter/article.php?article_id=116344

So, why is this figure important? The domain industry could benefit greatly by making relationships with these agencies. Once relationships are established with one division, or subsidiary, it is quite easy to work with associated agencies, who often manage different aspects of the same brands.

Right now domainers and parked companies are forced to work on Google and Yahoo’s terms, since they have no direct way to go to advertisers. If they knew that there were only about 4 companies that control over half of all advertising, then their efforts would seem much more promising. Instead of needing to reach out to each advertiser individually, they can court agencies and become part of their search and display advertising.

Eventually, domain traffic will become a special kind of media buying, which agencies will often outsource to specialized agencies.

It is likely that each vertical will support 2 to 3 competing traffic networks.

If you have any interesting statistics on agencies, please let me know.

If you go through the AdAge Yearbook, you can see the clients these agencies have. Domainers – You can also get the name of the account managers at the agencies….I.E. THE PRESON YOU NEED TO SELL YOUR DOMAIN TRAFFIC TO.

Agency Group – OmniCom 

Signature Client – Daimond Chrystler

Top 10 clients account for 18.30% of Revenue
Top 100    – 46.20%

Bought 16 companies in 06.
One of them was 180 Communications who buys for:
Amstel
Motorola
Omega Watches

Agency Group - WPP  

Form Motor Company        5.70%
Altria
American Express
BAT
GlaxoSmithKline
IBM
Microsoft
Procter and Gamble
Pfizer
Unilver

Top 10    23%

WPP has relationships with 300 out of the Fortune Global 500

Agency Group -InterPublic  

GM
J&J
Microsoft
Unilever
Verizon

Agency Group -Publicis Groupe

Agency – Publicis

Cadbury-Schweppes
Coca Cola
HP
L’Oreal
Nestle
Pernod Ricard
P&G
Renault
Sanofi-Aventis
Siemens
Telefonica
UBS
Whirlpool
Zurich Financial

Agency – Leo Burnette

Coca Cola
Diageo
Walt Disney Co
Fiat
GM
Heinz
Kellogg
McDonalds
Philip Morris
Samsung
Wm. Wrigley Jr.

Agency – Saatchi and Saatchi

Ameriprise
Avaya
Bel
Bristol-Myers
Suibb Mead Johnson
Carlsberg
Deutsche Telekom/ T Mobile
Diageo Guiness
Emierates Airline
General Mills
JC Penney
Novartis
Sony Ericson
Toyota / Lexus
Visa Europe
Walmart

Agency – StarCom MediaVest Group

Kraft
MasterFoods
Miller Brewing Co
Philip Morris
Sara Lee

Agency – Zenith

20th Century Fox
British Airways
JP Morgan Chase
Lloyds TSB
LVMH
Puma
Richemont Group
Sanofi-Aventis

Agency – Digitas   

American Express         26%
Heineken
Home Depot
InterContinental Hotels Group
Time Warner
Wyeth
Wells Fargo
That should be enough to get started.