Starcom MediaVest Group (SMG) has surpassed OMD as the world’s largest media network by billings in the latest “Global Billings Rankings” report from Paris-based media agency research firm RECMA.
RECMA evaluated 865 agencies in 61 countries to compile the report.
SMG grew its global billings by 9%, or US$2.84 billion, to US$34.3 billion in 2011 (all figures in US dollars). The network’s new business wins included the global assignment for pharmaceutical company Novartis – valued at $600 million – and regional assignments including Burger King, Microsoft and China Telecom.
SMG ranks just ahead of Omnicom’s powerhouse OMD network ($34.1 billion) and fellow Publicis Groupe network ZenithOptimedia ($31.9 billion). Together, those three networks control nearly one third (31.4%) of all global billings.
Rounding out the top 10 global networks are the WPP-owned Mindshare and MediaCom networks ($29.2 billion and $27.9 billion respectively), Aegis Media’s flagship network Carat ($27.1 billion), WPP’s MEC ($25.1 billion), Interpublic’s UM ($17.1 billion), Havas Media’s MPG ($17 billion) and Interpublic’s Initiative brand ($13 billion).
RECMA said that the recent acquisition of Aegis by Dentsu will propel the new media group comprised of Dentsu Media Japan – which accounts for about a quarter of all Japanese media billings – and Aegis’ global billings into third place globally, ahead of Omnicom Media Group.
While WPP’s GroupM is the “indisputable” global leader among media groups, RECMA said that the group (comprised of the Mindshare, MediaCom, MEC and Maxus networks) demonstrated a below average growth rate with “uneven” performances across the various regions.
GroupM’s relatively poor performance in the U.S. – where billings grew just 5% versus the industry average of 10% – was partly offset by a $2.3 billion increase in billings in the Asia-Pacific region.
Four networks achieved double-digit billings growth last year, led by Maxus (+43.6%, albeit from a small base), PHD (17.5%), ZenithOptimedia (11.1%) and Carat (10.1%). A relative newcomer, WPP-backed Maxus won the $850 million Comcast account, the global Barclays business valued at $150 million and the $50 million Bausch & Lomb assignment in Asia-Pacific, Europe and North America.
The RECMA report found that 87.8% of all global media billings – approximately US$280.6 billion of the US$319.8 billion spent by clients worldwide – flow through the 13 major agency networks.
The report said its findings show an industry enjoying “sustained growth.” Billings increased 9.2% in 2011, down from a 13.8% increase in 2010, partly fueled by the continued development of digital within agencies’ core business, said RECMA.
