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Media Agency Report Cards 2007

April 28, 2008

-By Adweek Staff


adweek/photos/stylus/23987-MediaTV.jpg

Adweek's annual report cards for the leading media agency brands.

Media agency competition for new business, always fierce, dramatically intensified in 2007. Clients put $12 billion in media-only accounts up for grabs, compared with some $7 billion the year before, and the major media shops achieved double-digit revenue growth for the sixth consecutive year.

The key for some was new business wins, while others introduced diversified services, organic growth or some combination of all three factors. Overall grades were clustered in the B range, with 9 of the 14 shops receiving some variant of that grade. Statistically that's not surprising given the fairly small number of shops evaluated (compared to 35 creative agencies).

Most of the planning and buying grades are in the A range, a reflection of the fact that the shops have parity with respect to those price-of-entry functions. Revenue growth across the 14 agencies was slightly higher on average in 2007 than 2006 -- 14 percent vs. 13 percent, respectively. Thus, an agency that achieved a 14 percent revenue gain, all other things being equal, would earn a C in the numbers section of its card. Other factors may impact the numbers grade, such as revenue-per-employee figures (an indicator of efficiency) and actual dollar-figure revenue gains or losses (which add some perspective, where agency size is concerned, that the revenue-growth percentage figure does not).

Publicis Groupe's Zenith Media had the highest revenue gain, 24 percent to $383 million, largely driven by its January Fox win ($750 million) and organic growth. Three shops posted 20 percent revenue growth, including two WPP shops, Mediaedge:cia and MediaCom, and Interpublic Group's Initiative.

CARAT: B-

HORIZON: B

INITIATIVE: A-

MEDIACOM: B+

MEDIAEDGE CIA: A-

MEDIAVEST: A-


MINDSHARE: B-

MPG: B

OMD: B

OPTIMEDIA: B+

PHD: B+

STARCOM: B

UNIVERSAL MCCANN: B

ZENITH: A-

1 |2 |3 |4 |5 |6 |7 |8 |9 |10 |11 |12 |13 |14 |15


Media Agency Report Cards 2007

April 28, 2008

-By Adweek Staff


adweek/photos/stylus/23987-MediaTV.jpg

Adweek's annual report cards for the leading media agency brands.

Media agency competition for new business, always fierce, dramatically intensified in 2007. Clients put $12 billion in media-only accounts up for grabs, compared with some $7 billion the year before, and the major media shops achieved double-digit revenue growth for the sixth consecutive year.

The key for some was new business wins, while others introduced diversified services, organic growth or some combination of all three factors. Overall grades were clustered in the B range, with 9 of the 14 shops receiving some variant of that grade. Statistically that's not surprising given the fairly small number of shops evaluated (compared to 35 creative agencies).

Most of the planning and buying grades are in the A range, a reflection of the fact that the shops have parity with respect to those price-of-entry functions. Revenue growth across the 14 agencies was slightly higher on average in 2007 than 2006 -- 14 percent vs. 13 percent, respectively. Thus, an agency that achieved a 14 percent revenue gain, all other things being equal, would earn a C in the numbers section of its card. Other factors may impact the numbers grade, such as revenue-per-employee figures (an indicator of efficiency) and actual dollar-figure revenue gains or losses (which add some perspective, where agency size is concerned, that the revenue-growth percentage figure does not).

Publicis Groupe's Zenith Media had the highest revenue gain, 24 percent to $383 million, largely driven by its January Fox win ($750 million) and organic growth. Three shops posted 20 percent revenue growth, including two WPP shops, Mediaedge:cia and MediaCom, and Interpublic Group's Initiative.

CARAT: B-

HORIZON: B

INITIATIVE: A-

MEDIACOM: B+

MEDIAEDGE CIA: A-

MEDIAVEST: A-


MINDSHARE: B-

MPG: B

OMD: B

OPTIMEDIA: B+

PHD: B+

STARCOM: B

UNIVERSAL MCCANN: B

ZENITH: A-

CARAT


Numbers D
Billings down 1% to $7.6 billion. Revenue up 11% to $320 million. (Numbers restated to reflect last year's merger of Carat Fusion into Carat). Won OSI, parent of Outback Steakhouse and Carrabba's Italian Grill restaurant chains ($110 million); Discover Financial ($40 million) and Wyndham Hotel Group ($15 million). Lost Midas ($25 million), Napster ($25 million), Motorola ($20 million), Rent-A-Center ($20 million). Organic growth led by Gap (up 40% to $150 million). Full impact of $250 million Pfizer Consumer Healthcare loss in December 2006 kicked in. Worst revenue-to-staff ratio among all 14 agencies brings down grade.

Planning A-
In September helped client Alberto Culver inject new life into aging VO 5 brand with event sponsorships to complement new digital and traditional media campaign. Agency put the brand in MySpace Music Tour, linked to a mobile contest, TV and print ads, achieving lift in awareness and purchase intent.  Research the agency conducted in April found that more than half the effectiveness of MySpace campaigns comes from letting users download wallpaper, embed videos and add brands as their friends -- endorsements that outweigh standard ad messaging.

Buying A-
To counter DVR usage and ad skipping, teamed with client Reebok in November to create series of short films running on IFC cable channel and online that feature celebrity endorsers such as NBA's Allen Iverson and MLB's David Ortiz.

Management C
A tumultuous year for Carat. It was absorbing brunt of Pfizer loss when Wal-Mart rescinded $600 million media assignment in January. In July implemented major restructuring, merging digital and traditional into a single operating entity headed by Sarah Fay as CEO, with Scott Sorokin as president. That didn't stop $800 million car client Hyundai/Kia from calling review in October while another client, Philips, opted to stay following a review.

Comments
Hyundai/Kia bailed in January for Initiative, and New Line ($250 million) was absorbed in March by Warner Bros., which shifted the media account to its incumbent, WPP's MediaCom. With pending departure of Aegis Media Americas CEO David Verklin (announced last week), it's time for the new team, led by Fay, to settle down and show the industry just how forward thinking and efficient its integrated "agency of the future" model really is.

FINAL GRADE: B-

HORIZON

Numbers C-
Billings up 13% to $1.8 billion; revenue up 12% to $100 million. Won Washington Mutual (broadcast buying, $100 million), Foxwoods (radio and out-of-home, $45 million), Smart Balance ($40 million), Yari Film Group ($40 million) and Berkshire Hathaway's Helzberg Diamonds ($15 million). No losses. Organic growth led by NBC Universal (up 12% to $102 million) and Geico (up 2% to $569 million). Below-average revenue gain on smallest revenue base brings down grade.

PLANNING B+
In June, shop created Insights Group, a new strategic marketing communications unit that folded several disciplines under one umbrella, including channel and consumer insights, to create more collaboration during the strategic thinking process. Oliver Maletz, 43, svp and managing director of brand strategy, was placed at the helm as svp and managing director at Insights. Brad Adgate, 52, svp of research, was brought into the group to provide data on consumer media usage and channel trends.

Buying A
In February, restructured direct buying group within Horizon Direct Marketing into two disciplines, television and radio. This resulted in the creation of dedicated specialists that focus on improved negotiations and the adoption of emerging buying platforms, such as Google and Bid-4-Spots. In December, executed an out-of-home display for A&E's Paranormal State focusing on audio spotlight technology. In November, created the first wrap of an Amtrak Acela train to promote 1968 With Tom Brokaw on The History Channel.

Management B
Largest independent shop achieved fourth consecutive year of double-digit revenue growth. In October, under the direction of founder and CEO Bill Koenigsberg, 52, the 19-year-old shop revised its positioning for the first time in 10 years, unveiling a new motto: "Business is personal" (replacing "Marketing-driven media services company"), as well as a new logo and look for its Web site.

Comments
Off to a strong start in 2008. In January, added planning for new MGM Grand Hotel at Foxwoods in Connecticut ($45 million). In February, created curious@horizon, further morphing its Insights Group, adding creative solutions to the mix. At press time, remains a finalist for $60 million Burlington Coat Factory Warehouse media account.

FINAL GRADE: B

INITIATIVE

Numbers A-
Billings up 12% to $9.1 billion; revenue up 20% to $283 million. Won Bayer (planning, $400 million); Kao Brands (planning, $150 million); Quiznos ($90 million); Big Lots (planning, $50 million). Organic growth led by Lionsgate (spending up 30% to $185 million); Hitachi (up 54% to $20 million). Lost AT&T (Southeast region, $50 million).
 
Planning A
In May, devised online strategy for Arby's to tap into estimated 60 million viewers who go online at work. "Arby's Lunchbreak" campaign sponsored clips of NBC comedies such as 30 Rock and The Office and aired them on thelunchbreakshow.com from noon-2 p.m., just as viewers were making their lunch decisions. In September, created a viral e-mail campaign for Showtime's serial-killer program Dexter that allowed senders to suggest that the recipient was the next target of a serial killer. Creepy but effective: Show's ratings for season-two premiere were up 67%, according to Showtime.

Buying A
In September, Innovation unit, led by then-evp Alan Cohen created a promotion for CBS's Monday night lineup that included the first use of a micro-USB stick, inserted in Entertainment Weekly and loaded with exclusive program clips and a link to additional online information about the network's shows. In October was the first to use a new technology that allowed designs to appear and disappear on grocery freezer doors to promote the new CBS show Moonlight.

Management A-
In his first full year at the helm, North American CEO Richard Beaven led shop to a 20% gain in revenue (versus 5% in 2006). Known for years for its strength in buying, shop was repositioned as a "media, marketing and digital company." Beaven, who joined the shop in 2006 from MediaVest, has placed a new emphasis on planning capabilities, and raked in a handful of big new planning accounts, driving shop to its best revenue-growth year in over a decade.

Comments
Off to very strong start in 2008 by winning $800 million Hyundai/Kia and $110 million Cadbury Schweppes Americas Beverages, both in January. Beaven's efforts rewarded with his promotion to worldwide CEO in February. Now it will be up to new U.S. president Tim Spengler and Initiative West and Innovation president Alan Cohen (both elevated in February) to keep the momentum going Stateside.

FINAL GRADE: A-

MEDIACOM

Numbers B+
Billings up 18% to $7 billion. Revenue up 20% to $238 million. Won: GlaxoSmithKline (planning, $1 billion); Dell ($340 million); Michelin ($50 million); Pringles ($30 million); Glaceau ($30 million). Lost OSI/Bonefish Grill ($2 million). Organic growth from Volkswagen (spending up 15% to $340 million). Full impact of December 2007 Dell and GSK wins will be fully felt in 2008.

Planning B+
In February devised a growth plan for Glaceau Vitaminwater using new and traditional media, including tailoring 15 different 5-second TV spots on cable channels and on YouTube, Google and other sites. Significant lift in sales was credited to effort. In August, formed an executive committee to improve strategic collaboration across divisions of MediaCom and digital unit Beyond Interaction.

Buying A-
Extended Volkswagen Jetta's "Safety Happens" ad theme to multiple platforms beyond broadcast (where it began in 2006) with branded product integrations via cable, outdoor. Jetta was featured in an episode of FX series Rescue Me having front-end collision in which no one was injured. In another episode, character buys Jetta for daughter, touts its safety record. Billboards show baseball outfielders colliding with Jetta to play up car's "four-star" front-impact rating. In June founded branded content division MediaCom Entertainment and hired Adam Pincus, former vp, original programming, Sundance Channel, to run it.

Management A-
In August, imported its top Canadian executive, Doug Checkeris, 51, to run the U.S. operation as CEO, replacing Dene Callas, who was named to the new position of global director of creative and had held the job since 2002. In May, Barbara Cippola joined from sister shop MEC as president and chief strategic services officer and is No. 2 executive. New management was just what this shop, part of WPP since the Grey acquisition in 2005, needed to give it a boost following a couple of sluggish years, including a no-growth year in 2006. Also new to the team: Mark Piazza, named CFO in October, and Margaret Lewis, who joined as chief strategy officer in March 2008.

Comments
Checkeris and his team are carrying their second-half 2007 momentum into 2008 with two key wins: New Line Cinema (won earlier this month and worth $250 million) and Citizens Bank assignment (won in January, with spending of $60 million).

FINAL GRADE: B+

MEDIAEDGE:CIA

Numbers A-
Billings up 30% to $9.1 billion. Revenue up 20% to $366 million. Won AT&T ($2.4 billion, two-thirds of which was new business); Macy's ($500 million); Energizer ($90 million); Monster.com ($90 million); Citigroup (planning, $60 million); Green & Black's ($40 million); Stride Rite ($12 million). Lost United Airlines ($60 million); Barilla ($20 million). Full impact of AT&T win in late October will be felt in 2008.

Planning A
In October launched MEC Access, which creates and develops strategic partnerships and sponsorships across multiple platforms, including sports, cause-related marketing, gaming, music and film. Richard Yaffa was tapped to head U.S. operations. Yaffa, 42, ran marketing/sponsorship consultancy The Leverage Group, which MEC acquired in 2006 and which forms the core of MEC Access in the U.S. Clients include Citi, Bayer and Jones Apparel. MEC Retail developed a new proprietary tool that ranks dozens of in-store marketing strategies in order of importance for individual marketers and added Pepperidge Farm and Colgate-Palmolive as clients.

Buying A
In June, chairman and chief investment officer Rino Scanzoni led a team of buyers at GroupM (which oversees MEC and siblings MindShare and MediaCom) that crafted the first big TV ad deal based on commercial ratings, an $800 million ad buy with NBC Universal. It helped to solidify the new measurement system's standing as the TV industry's new currency for conducting business.

Management A-
In March, worldwide CEO Charles Courtier promoted two executives to run the North American operation, naming Lee Doyle CEO and Scanzoni chairman. (The move allowed him to focus globally after doing double duty as North American CEO.) The pair achieved double-digit revenue growth, which MEC has now accomplished for six consecutive years. That growth, coupled with industry leadership on C3 and other achievements, led Adweek to name MEC its 2007 Global and U.S. Media Agency of the Year.

Comments
The momentum has slowed a bit with the January loss of $100 million-plus Cadbury Schweppes Americas Beverages account and February split with shoemaker Collective Brands ($95 million).

FINAL GRADE: A-

MEDIAVEST

Numbers B+
Billings and revenue up 18% to $10.5 billion and $415 million, respectively. Won Wal-Mart ($570 million) and Wendy's ($400 million), followed by Abbott Laboratories ($200 million). No losses.

Planning A-
In February, shop created first mobile scavenger hunt for Sprite Obey to engage teens in social networking context. During campaign run, each week, teens were sent a 3-word text message. Goal was to find corresponding images to key words and upload them to a microsite to win points. Submissions were judged, commented and scored by peers. Online component allowed teens to embed messages to friends into Sprite broadcast commercials. Agency said 1.5 million teens joined community and collectively spent 3.1 million minutes -- equivalent to six years -- with the brand online alone. Agency credits campaign with driving 26% increase in teens' weekly consumption of the beverage. In May, Lisa Donohue, 43, and Jim Kite, 43, promoted to presidents of truth and design group, and connections research and analytics, respectively, elevating planning and research capabilities on corporate organizational chart.

Buying A-
In November, Publicis agency consolidated its video, digital, print and out-of-home buying units, placing them under Donna Speciale, 44, president of investment and activation, who had presided over video segment only. Move gives her oversight of $7 billion in investment dollars on behalf of clients such as Coca-Cola, Kraft and Mars. For Westin, shop in July employed alternative media campaign, including experiential OOH digital technologies, transforming subway cars into tropical paradises and billboards into blooming flowers.

Management A-
Shop didn't lose a beat after promoting Bill Tucker, 48, from president, client service and agency operations to CEO in May, succeeding Laura Desmond, named CEO of Starcom MediaVest Group. Won three big new accounts, lost none and achieved fifth straight year of double-digit revenue growth. In March, shop launched MV42, a multicultural agency.

Comments
Tucker's first year as CEO was impressive. February launch of video-on-demand Dove Chocolate channel marks further commitment to space. March release of research on presidential primary season and print-versus-online readership also demonstrates commitment to meeting evolving client needs.

FINAL GRADE: A-

MINDSHARE

Numbers D+
Billings down 6% to $10.5 billion. Revenue up 10% to $324 million. Won Nationwide ($120 million); Royal Caribbean ($120 million); Tempur-Pedic ($100 million); LG Electronics ($75 million); Motorola ($45 million). Lost Fox ($500 million); Sears/Kmart ($450 million); Samsung ($40 million). Organic growth led by Sprint Nextel (up 70% to $1.2 billion); Six Flags (up 47% to $65 million) and SAP (up 165% to $40 million). Full impact of late May Sears/Kmart loss will be felt in 2008.

Planning A-
In January, executed multimedia plan to generate awareness for Unilever's Dove Cream Oil launch, turning to user-gen content and fascination with cult of celebrity. Centerpiece for plan was contest asking "real" women to create and star in "The Next Big Dove Commercial." Winning spot appeared on February 2007 Academy Awards on ABC. Ads promoting contest aired on TV, in print and online. (Won a Mediaweek 2007 Media Plan of the Year award.) Results: 115 million product samples requested through 2007, lots of PR buzz: 234 million impressions, according to shop's calculations.

Buying A-
In June, broadcast department, led by co-executive directors Jason Maltby and Shari Cohen, helped kick off the upfront (along with sister shops Mediaedge:cia and MediaCom) and establish C3 ratings system as the industry's official currency with estimated $800 million ad buy across NBC Universal networks. In April, MindShare Entertainment president David Lang spearheaded pairing of Sprint and Unilever in a multiplatform branded-content project designed to give women a forum to discuss various issues relating to parenting while promoting client products. The Web series, "In the Motherhood," was the first time shop paired two clients in a single-content project.

Management C+
After winning Adweek U.S. Media Agency of the Year in 2006, shop cooled with departure of Fox and Sears/Kmart. In February, new North American CEO Scott Neslund replaced Marc Goldstein, who was elevated to North American CEO of shop's parent, GroupM. Organic growth and diversified service offerings -- notably Lang's branded entertainment efforts -- helped boost revenue by almost $30 million. New multicultural and sports sponsorship units also established.

Comments
Good start this year with $90 million American Family Insurance win in February. Earlier this month announced major restructuring that would be rolled out globally, starting with North America.

FINAL GRADE: B-

MPG

Numbers C
Billings up 12% to $3.5 billion. Revenue up 17% to $140 million. Won Sears Holdings ($450 million), Credit Suisse ($50 million), Pearle Vision ($20 million). Lost Royal Caribbean ($60 million), Hershey (planning, $50 million), Outback Steakhouse ($55 million). Organic growth led by Reckitt Benckiser (up 30% to $475 million) and Schering Plough (up 14% to $515 million).

Planning A-
In April, created plan to relaunch failed prescription diet-drug Xenical as over-the-counter Alli for client GlaxoSmithKline. Shop devised pre-launch phase designed to reinforce idea that successful weight-loss techniques are not quick fixes and require lifestyle changes. Set up Web site, questioneverything.com, with information about dieting truths and myths. Launch phase included inserts in 40 publications, posters in health clubs and salons, and radio. Results: 2007 sales totaled $155 million, 40% higher than initial projections.

Buying A
In November, struck deal with ABC for Tyson Foods product integration in Extreme Makeover: Home Edition (a year's worth of chicken and pork for featured family). Goal was to increase brand awareness for Tyson in a "family values" type of program environment. Effort was ranked as top product integration of 2007 by IAG Research with an engagement rating nearly four times the average integration for the year.

Management B
CEO Charlie Rutman and his team, after winning handful of small to midsize accounts in 2006, snagged a big one with $450 million Sears Holdings win in May. He then hired in October client veteran Kaki Hinton, former vp, advertising at Johnson & Johnson, to run Sears account. Rutman also invested more of Havas shop's resources to bulk up econometrics modeling, analytics and strategic planning capabilities. He's also adopting an "outcomes not hours" approach to compensation, revamping contracts to tie client success to shop's pay.

Comments
Mostly good news for shop so far in 2008 with $85 million Mucinex win in March, $110 million Spiriva win (split with RJ Palmer) in April. Possible game changer this year: oft-rumored takeover bid for competitor Aegis by Havas chairman (and largest Aegis shareholder) Vincent Bollore, who has talked up alliance between those companies for last two years.

FINAL GRADE: B

OMD

Numbers C
Billings up 5% to $11.7 billion. Revenue up 9% to $548 million. Won Best Buy ($300 million), Hershey (planning, $100 million), Apple (digital, $32 million), Rent-A-Center ($20 million), REI ($20 million), Barilla ($20 million). Lost Johnson & Johnson (print, $300 million), Dell ($275 million), Sony PlayStation ($150 million), AT&T (newspaper, $95 million). Organic growth led by Eli Lilly (up 40% to $335 million) and State Farm (up 27% to $300 million). Below-average revenue growth, but gain comes off largest revenue base. Full impact of late 2007 J&J and Dell losses will be felt in 2008.

Planning A-
In June, crafted a plan to boost overnight sales at McDonald's outlets by targeting young men and promoting the idea of sobering up after an evening of drinks with a Big Mac and fries. (Won a Mediaweek 2007 Media Plan of the Year award.) Mix of out-of-home media, coupons and guerrilla marketing included sobriety checkpoints outside popular night clubs and agreements with cab companies to shuttle tipsy revelers home -- by way of McDonald's. Overnight sales in target region in July jumped by 20% while DUI arrests were down 14% in the same period, according to the client.

Buying A-
In May, Omnicom shop executed State Farm's "Now What" campaign designed to make its insurance programs more meaningful to younger consumers. Campaign included first-time viral AOL Instant Messaging component to create and transmit fake "disasters," such as computers destroyed by fire or crushed by rocks. Ads placed on CBS's online channel in programs such as Big Brother. Mobile and cable components also tied-in. Results: Viral IM campaign spread 500,000 "disasters." Follow-up research showed State Farm brand resonating more positively with younger viewers with significant lift in purchase intent.

Management B
Despite some big losses, North American CEO Page Thompson kept Omnicom shop on upward trajectory. Created new gaming unit in April, headed by Dario Raciti, and signed up clients Doritos, Nissan and Visa. Former director of innovation Scott Hagedorn zoomed up the corporate ladder with two promotions in six months, first to director, U.S. digital operations in July and then to managing director, OMD East in January 2008.

Comments
With its eye on the future, shop is devising new organizational structure to address evolving media landscape and changing client needs, to be unveiled later this year.

FINAL GRADE: B

OPTIMEDIA

Numbers B-
Billings up 10% to $2.9 billion; revenue up 13% to $170 million. Won Rhapsody ($50 million), Talbots ($20 million) and Giorgio Armani ($17 million planning). No losses. Organic growth led by Whirlpool (spending up 37% to $60 million). Third best revenue-to-staff ratio lifts grade.

Planning A-
Launched Open in March, establishing integrated communications planning resource teams led by strategic communications planning directors Chris Pyne, 32, in N.Y., Vijay Rao, 33, in Seattle and Tom Scott, 40, in Dallas. Clients include L'Oreal's Lancome, Sanofi-Aventis, T-Mobile, Mango, Denny's and Curves. Aim is to deliver more strategic and consumer-focused approach to communications.

Buying B+
In January, developed communications plan for T-Mobile called "MyFaves," with integrated digital, product placement and traditional media campaign. (50% of users adopted MyFaves within the first year, which resulted in higher average revenue per user.) Also in January, created a targeted print and online campaign for Diesel's new fragrance line. Kicked off campaign with a microsite, driving traffic via an e-mail blast through databases of select print partners, including Blackbook and Nylon. Out of home included projection image of New York's Virgin Megastore in Times Square during fashion week and billboards in Dallas and Los Angeles.

Management B+
Two years in, president Antony Young, 43, has made digital a core competency at the shop and is delivering digital revenue. Agency was just under industry average, falling eight points from last year's robust 21% revenue growth. In March, Young hired Andrea Kerr Redniss, 31, as joint managing director of NewCast, the agency's integrated national broadcast and digital division. Shop has experienced double-digit growth in the last three years. High marks for implementation of strategic communications platform.

Comments
Year is off to a busy start. Teamed with sibling creative shop Publicis USA to create Optimedia Inside in February. Aim for new unit is to provide Publicis clients access to communications planning tools and insights developed by agency. In March released inaugural study, the 2007 Content Power Ratings Report, delivering quarterly ratings index ranking the top 100 television programs based on the number and quality of viewers across traditional and digital media.

FINAL GRADE: B+

PHD

Numbers C
Billings up 8% to $6.3 billion. Revenue up 10% to $327 million. Won Overture Films ($80 million), American Legacy Foundation ($35 million), ConocoPhillips ($20 million), 24 Hour Fitness ($20 million), New Balance ($15 million), Aviva ($16 million), SanDisk Sansa ($10 million), Dave and Buster's ($15 million). Lost Energizer ($70 million) and Quiznos ($80 million). Full impact of October 2006 Safeway ($250 million) win felt in 2007. Best revenue-to-staff ratio lifts grade.

Planning A
In April, created media plan for Charles Schwab with a broader, lifestyle-oriented media mix based on insight that investing is part of everyday life. Mix included dry cleaner bags with the message, "Is your broker taking you to the cleaners?" and health club posters that admonished, "Crossing your fingers doesn't work." Coupled with TV, an array of digital platforms, print and mobile helped boost new Charles Schwab account by 15%.

Buying    A-
In January, activated an emerging platform strategy to generate maximum buzz for season two of client Discovery Channel's series Future Weapons. Using a mix of ads and giveaways on different gaming platforms (e.g., Massive Dynamic Ad Network) and PR targeting more than 500 media outlets helped boost second season premiere ratings 60% higher than projected viewing levels.

Management B+
Two-and-a-half years after joining shop in September 2004, president Matt Seiler was made CEO in March for sharpening agency's capabilities. This included developing robust communications planning offering, hauling in more than $1 billion in new business from 2005-07 and repositioning shop around what he calls the "lead agent" system, which puts one senior executive in charge of account who can tap various specialists at shop to service client needs. He succeeded Steve Grubbs, who was elevated to CEO of new Omnicom Sports & Entertainment unit in March. Seiler reports to Mike Cooper, promoted in October to worldwide CEO from CEO of Omnicom Media Group Asia.

Comments
After delivering two years of $500 million incremental billings growth, cooled off a bit, delivering about half that last year. Concern going forward is health of biggest client, Chrysler, which lost $1.6 billion last year and is slashing costs. (Carmaker spent $1.3 billion on ads in 2007, down 9% from 2006, per Nielsen Monitor-Plus.)

FINAL GRADE: B+

STARCOM

Numbers C-
Billings up 11.6% to $10.6 billion. Revenue up 8% to $460 million. Won Samsung ($120 million), United Airlines ($100 million) and U.S. Cellular ($150 million). Lost Macy's ($250 million) and Washington Mutual ($150 million). Organic growth, which accounted for nearly 50% of overall revenue increase, was led by Nintendo (spending up 46% to $122 million) and Allstate (up 2% to $342 million). Worst revenue growth of all 14 agencies, but second-largest revenue base combined with fourth-best revenue-to-staff ratio prevents lower grade.

Planning A-
In January rolled out communications plan for Nintendo Wii, seeking to tap into nontraditional gaming constituents by focusing on adults and parents. Targeting moms, shop used cable network Nick Jr. and Scholastic Parent & Child magazine to illustrate how Wii translates into family time. Bought exclusive rights to YouTube home page at campaign's launch. Overall, campaign boosted both awareness and recall by 29%, with 11% spike among consumers citing likely purchase intent. Nintendo exceeded sales goals by 10%.

Buying A
In January, became first agency to subscribe to TiVo's Stop//Watch ratings service, designed to better understand time-shifted viewing habits. Move allows shop to analyze how fast-forwarding affects viewing and engagement for specific commercials. In November, Publicis shop expanded its accountability, connectivity and engagement print planning platform (launched in 2005) with print return on objective formula (Proof), a post-plan accountability tool designed to measure yardsticks such as ad recall and brand association.

Management B
CEO John Muzynski continues to refine and enhance shop's offerings while blazing new trails in research and ROI, with Proof being just one example. In October, created president/chief strategist post, bringing aboard Steve Buerger, former svp of client solutions at AOL, in part to revamp new business development. Tepid numbers offset by industry-leading innovation in media research. Shop dropped two half grades from last year due to poor growth performance, though losses don't indicate anything unusual due to size of agency.

Comments
Off to an outstanding start in 2008 with Bank of America win (projected U.S. spending of $500 million) in March.

FINAL GRADE: B

UNIVERSAL MCCANN

Numbers C-
Billings up 10% to $6.4 billion. Revenue up 13% to $147 million. Won U.S. portion of Johnson & Johnson consolidated review ($1.3 billion, adding $400 million in new U.S. spending); Subaru (buying, $90 million); Smith Barney ($30 million); Bumble Bee ($20 million). Lost Wendy's ($240 million). Organic growth led by Verizon (added $200 million planning assignment). Full impact of December 2006 Pfizer Consumer Healthcare win ($250 million) enough to offset Wendy's loss. Realized only half-year revenue from J&J coup.

Planning A-
In May, created communications planning unit Sandbox, which was instrumental in capturing a portion of J&J's communications planning assignment, which client assigned separately for the first time in July. In April, for client Microsoft, transformed part of JFK Airport into a high-definition out-of-home media room, with 70-inch HDTV, screens, addressable sound system and 7,000 square feet of advertising to create a "digital brand experience."
 
Buying A-
In August, teamed with TV producer Go Go Luckey to create a multiplatform microseries featuring Acuvue contact lenses. Reached an agreement with MTV to have 60-second episodes of the microseries, called "Hampton High," air as stand-alone spots in its hit prime-time show The Hills. Each episode ended with a cliff-hanger and sent viewers to a microsite on Facebook, where they could vote to affect the outcome, sign up for news feeds, learn about characters and request a free pair of Acuvue lenses. Results: Brand-purchase consideration shot up 103%; brand awareness goal exceeded by 140% with a sales boost of 137% in the targeted period (August-October) at Wal-Mart, the brand's top retail chain.

Management B
After spending most of 2006 refining tools and capabilities, shop prevailed when its biggest client, J&J, put $3 billion media account in review in March, winning most of J&J U.S. media assignment that it didn't already handle. It was a ringing endorsement of Nick Brien's overhaul since signing on as worldwide CEO in November 2005. In December, IPG put Brien in charge of a task force designed to identify efficiencies throughout the holding company's media assets.

Comments
After retooling in 2006, Brien and U.S. president Mary Gerzema have shop back on track. Incumbent shop remains a finalist in Intel's ongoing $300 million review. Teaming with sister shop Initiative to revamp negotiating arm Magna Global.

FINAL GRADE: B

ZENITH MEDIA

Numbers A
Billings up 23% to $7.4 billion. Revenue up 24% to $383 million. Won Twentieth Century Fox Filmed Entertainment ($750 million), News Corp./NBC Universal's hulu.com ($60 million), Empire State Development-NYC Tourism ($15 million) and L'Oreal interactive ($15 million). No significant losses. Organic growth led by Schering-Plough (up 14% to $415 million) and Verizon Communications (up 8% to $1.1 billion).

Planning A-
In January, refocused target from moms to male teens for the Totino's frozen pizza brand -- a first. Determined that action sports would be key platform and struck cross-platform deal with ESPN's Winter X Games content, across TV, print, interactive TV, mobile, event, product displays, in-store and athlete sponsorships, as well as a sweepstakes. In June, implemented Zenith Consumer Pathway, a research platform designed to track consumer engagement with clients' brands. Rob Jayson, 41, who was promoted to evp, planning director in November from svp of touch points planning, led the program's rollout. Also opened Ninah, agency's econometric, marketing and sales force optimization consultancy, in August, led by managing directors David Dixon, 32, and Sebastian Shapiro, 34, who were previously partners at the Interpublic Group's Marketing Accountability Partnership.

Buying    A-
Orchestrated agency's first live commercial on The Ellen DeGeneres Show for 2008 Toyota Highlander Hybrid in November. Incorporated Web component allowing viewers to stream live commercial on show's site or Toyota.com.

Management A-
In nearly three years as CEO of North America, Tim Jones has injected new potency into the Publicis-owned shop, as evidenced by the Fox win. Since he joined in 2005, revenue has climbed 51%. Reorganized agency in February, creating Zenith Sphere to drive shared resources and develop holistic content programs. Shop eliminated media buying, planning and research departments, restructuring teams into "bio-spheres" around large clients or groups of smaller ones.

Comment
More structural tinkering in 2008. Began in January with a restructuring of its buying operations, combining traditional TV with digital platforms to cater to the growing video marketplace. Also signed agreement with Nielsen to incorporate data into its advertising planning and ROI analyses, including out-of-home, online video census research and mobile audience measurement.

FINAL GRADE: A-
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