Current global advertising scenario

1. Current Global Advertising Scenario
Vasanth.P

3.  The agency business has come back to life, with U.S.
revenue jumping 7.7% domestic market led a 2010
worldwide rebound in advertising and marketing
services.
 Digital marketing led the charge, accounting for 28%
of agency revenue.
 The U.S. was the world's star performer in 2010 for
advertising and marketing services, exceeding
expectations and outpacing growth in most other
regions.

4.  The U.S. advertising and marketing-services firms have added
23,100 jobs since ad industry employment hit bottom in
February 2010.
 The study finds that the Big Four agency holding companies --
WPP, Omnicom Group, Publicis Groupe, Interpublic Group of
Cos. in 2010 added 11,000 jobs (including acquisitions) after
slashing 22,000 jobs in 2009

5.  2010 revenue for marketing-communications agencies
including advertising, marketing services, media, health care
and public relations rose 7.7% to $30.4 billion.
 Shares in WPP, Omnicom and Interpublic in first-quarter 2011
reached their highest levels since pre-recession 2007, a sign
of investors' optimism about the sector. Publicis shares this
year reached their highest point since 2000.

7.  Ad spending and employment remain well off
their peak. Publicis' ZenithOptimedia says
U.S. ad/marketing-services spending won't
break its 2007 record until 2013.
 U.S. ad and marketing-services firms employ
76,500 fewer people today than at the
industry's pre-recession, late-2007 peak.

9.  Omnicom in 2010 reported 8.7% revenue growth after
factoring out acquisitions/divestitures and the impact of
foreign exchange, beating its 6.4% worldwide revenue
growth
 In 2010, Interpublic reported robust 10.1% organic
revenue growth, and Publicis posted 9.9% organic
growth in North America, better in both cases than any
other single region except Latin America.

11.  Revenue for the world's 50 largest agency companies
totalled $62.2 billion in 2010, up 9.4%. U.S. revenue
for those firms jumped 11.4%.
 The U.S. accounted for 42% of the top 50 agency
firms' worldwide revenue.
 Marketing-communications companies have returned
to merger-and-acquisition mode, doing a lot of buying
and some selling.

12.  in April 2011, WPP agreed to buy Commarco Holding, a German
agency group controlled since 2003 by a private-equity firm.
 WPP completed 25 small and midsize acquisitions in 2010, including
Canadian agency Taxi; I-Behavior, a U.S. database marketing firm;
Marketing Direct Inc., a U.S. marketing-services company; and U.S.
digital agencies Blue State Digital and Digitaria.
 WPP also rolled up four WPP shops into Possible Worldwide, a
global digital agency.

13.  Took majority ownership of Clemenger Group, an Australian agency
company in which Omnicom's BBDO Worldwide had been a minority
investor since 1972.
 Omnicom also purchased Communispace, a digital market-research-
services firm; bought The Modellers, a market-research company;
acquired The Core, a U.K. design and branding agency; bought Sales
Power, an in-store promotion company in China; and purchased a
majority stake in Maslov PR, a PR agency in Russia.
 Omnicom disbanded pioneering digital agency Agency.com, splitting its
offices among TBWA Worldwide network agencies.
 Omnicom sold a majority stake in U.S. PR firm Bordeur Partners.

14.  Omnicom is undertaking a global review of
operations with the aim to reorganize or dispose of
what "non-core, low-growth, low-margin
businesses. generally in smaller markets."
 As of April 2011, Omnicom had disposed of units
with combined annual revenue of about $120
million.

15.  Made two deals in Brazil, buying digital shop AG2 and a 60% stake
in agency firm Talent Group.
 Publicis also acquired PR firms Eastwei Relations (now Eastwei
MSL) in China and Interactive Communications Ltd. (now ICL MSL)
in Taiwan.
 Publicis bought U.K. integrated/digital-marketing firms
Airlock, Chemistry Communications Group, Holler and Kitcatt Nohr.
 Publicis agreed to sell its 56% stake in U.K. PR firm Freud
Communications back to Chairman Matthew Freud.

16.  Bought U.K. shop Delaney Lund Knox Warren from agency
firm Creston, making the renamed DLKW Lowe the U.K. hub
of Lowe Worldwide.
 Interpublic increased its stake in Brooklyn-based digital
agency Huge to 75% from 51%.
 The company did two deals in Brazil, acquiring digital shop
Cubocc and merging McCann Erickson's Brazil operation with
local agency W/Brasil.
 Interpublic sold U.S. PR agency MWW Group.

17.  Dentsu Inc. bought U.S. digital ventures
Innovation Interactive ( 360i) and Firstborn. The
Japanese company set up Dentsu Network West
as a New York-based network for its agencies in
the Americas and Europe.
 Aegis Group bought Mitchell Communication
Group, an Australian agency firm.

18. THE END