New data released Monday by the research firm RECMA underscores the sheer magnitude of this weekend’s merger between the world’s second and third largest agency holding companies: Omnicom Group and Publicis Groupe SA.
The Paris-based RECMA, which specializes in media agency research, shows the newly formed – but not yet formalized – Publicis Omnicom Group controlling 35.6% of media activity* worldwide through its four agency networks: The Publicis Groupe SA-owned Starcom MediaVest Group and ZenithOptimedia, and Omnicom Group’s OMD and PHD networks.
The new entity’s dominance is most pronounced in the Americas, where it will control a staggering 41.6% of all media-based activity – almost double that of its closest rival, WPP Group’s GroupM (21.7%).
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Globally, GroupM – comprised of Maxus, MEC, MediaCom and Mindshare – will control approximately 28.1% of media-based activity. Its market share is most pronounced in the top five European markets, where it accounts for an industry-leading 35.1% of all activity.
RECMA shows the Dentsu Aegis Network controlling 11.4% of global activity through its Carat, Vizeum and Dentsu Media networks, followed by Interpublic’s Mediabrands (Initiative, UM and BPM) at 9.6% and Havas Media with a 5.2% share. These groups, said RECMA, “clearly stand a step behind.”
Of the four agency networks that amassed more than US$30 billion in media activity in 2012, three could soon belong to the new Publicis Omnicom Group: Starcom MediaVest Group (US$39.2 billion), Omnicom’s OMD (US$37.5 billion) and Publicis’ ZenithOptimedia (US$32.8 billion). GroupM’s Mindshare is fourth with US$31.4 billion in activity in 2012.
Seven of the 15 major agency networks experienced double-digital growth in media activity in 2012, led by GroupM’s Maxus – which saw total activity increase 29.8% to US$8.8 billion.
The 15 major media networks saw activity grow 10% to US$302.3 billion in 2012. When factoring in other media entities owned by the major holding companies, as well as major independents, total activity grew 9.3% to $340.9 billion last year.
(*RECMA introduced the “Overall Activity” ranking five years ago; it is defined as the sum of buying billings + specialized services, including digital. The term billings has been dropped from all RECMA reports)
