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4 Publicis Groupe Headquarters: Amazon Advertising / 303 Sacramento St., San Revenue ($ in Millions) 2002 2001 % Chg Francisco, Calif SPECIALREPORTAGENCY REPORT AGENCY REPORT 2003 ADVERTISING ORGANIZATION PROFILE EDITION Ⅵ THE WORLD’S TOP 25 About this report Inside this report—a companion to the 59th only by its marketing communications revenue. Estimates also eliminated media from annual Agency Report (AA, April 21)—is a Marketing communications is defined as revenue totals of the large network agencies, breakout of agency revenue and staffing for the advertising and its media component, integrated since media is now a separate profit center and world’s top 25 ad organizations. Significant marketing agencies, specialty shops branded within the profiles. news, covering 2002 and early 2003, on each ad (multicultural, healthcare, etc.), and public Consolidated agency networks no longer are organization and agency subsidiary is noted, relations. Revenue is the sum of fee income, presented as super-segments of ad along with the agency’s specialty, top executives markup on materials and services and media organizations as they have been in the past now and contact information. commissions. Among integrated marketing that AA has shifted its focus to core advertising The print edition includes two major agency shops, revenue is often termed gross profit (net and media returns at these networks. rankings, the world’s top 25 advertising sales less cost of sales). The term “revenue” is organizations and a ranking of 468 U.S. ad synonymous with gross income, the barometer TO REACH US agency “brands. ” Additionally, that report of agency activity used in previous AA rankings. Online: contains the top 10 media specialist companies AA adopted revenue as primary CLICK to get daily marketing news from AdAge.com in the U.S. and world as ranked by Recma measurement when it shifted methodology Institute, the top 10 healthcare agencies, and the from presenting these large advertising CLICK for AdAge.com’s Customer Service page leading multicultural specialty shops. Not ranked combines on a pro forma basis to a presentation Email: For questions about this report, email are integrated marketing shops, agencies whose based on generally accepted accounting [email protected] direct marketing, sales promotion and/or principles. In mid-March, top executives of the For general editorial information, write to [email protected] interactive disciplines dominate their returns. big agency holding companies said they would Subscription Those agencies will be in a DataCenter report not provide data for this year’s report, citing & single copy sales 1-888-288- 5900; Advertising (212) 210-0159; Classified May 19. provisions of the 2002 Sarbanes-Oxley Act that 1-800-248-1299; Reprints of the print In this online edition, the top 25 ad tightened rules on disclosure. edition (717) 399-1900 Ext. 142; Library organizations are shown alphabetically as are This led Ad Age to estimate returns for services (312) 649-5476, (312) 649-5329 the brands that make up their marketing virtually all the agency brands found within News offices: New York (212) 210-0100; email: communications activities. Ad organizations are these leading ad organizations; an estimated [email protected], Chicago (312) 649-5200; Detroit (313) 446-0320, Los Angeles (323) 370- ranked by total revenue. But when less than half agency is marked by an asterisk (*). The 2400; San Francisco (415) 459-1401;Washington their total revenue comes from marketing integrated marketing and healthcare segments (202) 662-7200; London 44-207-457-1400 communications, the ad organization is ranked of these companies carry composite estimates. 59TH ANNUAL REPORT © Copyright 2003 Crain Communications Inc. AgencyReport April 21, 2003 | Advertising Age |2 WORLD’S TOP 25 ADVERTISING ORGANIZATIONS Ranked by worldwide revenue in 2002 RANK WORLDWIDE REVENUE U.S. REVENUE 2002 2001 ADVERTISING ORGANIZATION HEADQUARTERS 2002 2001 % CHG 2002 2001 % CHG 1 1 Omnicom Group New York $7,536.3 $6,889.4 9.4 $4,284.6 $3,717.0 15.3 2 2 Interpublic Group of Cos. New York 6,203.6 6,791.3 -8.7 3,491.1 3,879.0 -10.0 3 3 WPP Group London 5,781.5 5,799.5 -0.3 2,448.2 2,542.5 -3.7 4 5 Publicis Groupe Paris 2,711.9 2,181.5 24.3 1,179.9 927.5 27.2 5 4 Dentsu Tokyo 2,060.9 2,238.9 -8.0 44.5 32.4 37.5 6 6 Havas Suresnes, France 1,841.6 2,042.5 -9.8 804.5 878.6 -8.4 7 7 Grey Global Group New York 1,199.7 1,217.0 -1.4 520.5 505.3 3.0 8 9 Hakuhodo Tokyo 860.8 870.7 -1.1 1.3 1.6 -14.8 9 8 Cordiant Communications Group London 788.5 872.4 -9.6 227.2 274.4 -17.2 10 11 Asatsu-DK Tokyo 339.5 399.9 -15.1 3.8 3.2 18.8 11 10 TMP Worldwide New York 335.3 405.1 -17.2 229.1 277.9 -17.6 12 12 Carlson Marketing Group Minneapolis 328.5 356.1 -7.8 251.3 274.7 -8.5 13 13 Incepta Group London 240.9 248.4 -3.0 70.1 69.7 0.6 14 NA Protocol Marketing Group Deerfield, Ill. 225.0 NA NA 225.0 0.0 NA 15 14 Digitas Boston 203.9 235.5 -13.4 199.0 228.6 -13.0 16 17 Daiko Advertising Osaka 192.2 203.2 -5.4 0.0 0.0 NA 17 16 Tokyu Agency Tokyo 180.4 203.8 -11.5 0.0 0.0 NA 18 18 Maxxcom Toronto 169.5 177.1 -4.3 111.9 118.7 -5.8 19 19 Cheil Communications Seoul 165.0 142.0 16.2 6.8 5.2 30.8 20 20 George P. Johnson Co. Auburn Hills, Mich. 149.3 131.0 14.0 120.4 104.4 15.3 21 22 Aspen Marketing Group West Chicago, Ill. 125.0 114.0 9.6 125.0 114.0 9.6 22 21 Doner Southfield, Mich. 121.5 114.2 6.4 109.7 100.9 8.8 23 23 Select Communications Koblenz, Germany 110.0 98.0 12.2 44.0 39.0 12.8 24 34 ChoicePoint Precision Mktg. Alpharetta, Ga. 105.8 76.5 38.4 105.8 76.5 38.4 25 28 Alloy New York 101.2 88.0 15.0 101.2 88.0 15.0 Note: Dollars are in millions. Minority-held agencies qualify as ad organizations. 2001 rankings are based on data collected in 2002. See Page 1 for sources and methodology. *Figures are AA estimates. AgencyReport April 21, 2003 | Advertising Age |3 ADVERTISING ORGANIZATION PROFILES tion), Prime Pictures (TV commercial production), Supervision Inc. 25 Alloy (creative services and production) and Tokyo Ad Party (creative servic- Revenue ($ in millions) 2002 2001 % chg es). In 2002, ADK purchased 70% of Eiken Co., Tokyo, an animation $101.2 $88.0 15.0 U.S. production company, and 50% of Shanghai Advertising & Decorating Employees 2002 2001 % chg Co., heretofore a wholly-owned subsidiary of Shanghai YIBAI Co., a 383 339 13.0 U.S. developer of department stores and large-scale shopping centers. In Offices 2002 2001 % chg January 2003, ADK struck an alliance with Ogilvy Syndicate, a group 6 5 20.0 U.S. of U.S. creative agencies who work with WPP’s Ogilvy & Mather Notes: Alloy is a publicly-held media, direct marketing and marketing Worldwide on creative assignments, to serve ADK’s Japanese clients in services company targeting Generation Y, the 60 million-plus youths the U.S. Ogilvy holds no equity in Syndicate. aged 10 to 24 in the U.S. Alloy integrates direct mail catalogs, print Top executive: Koichiro Naganuma, pres & grp chief operating officer media, websites, on-campus marketing programs, and promotional Headquarters: Asatsu-DK/13-1 Tsukiji 1-chome, Chuo-ku, Tokyo, events, and features a portfolio of brands for Generation Y consumers 104-8172 / Phone: 81-3-3547-2111 / Fax: 81-3-3547-2345 / URL: and advertisers. Alloy's integrated marketing component—the basis of www.asatsu-dk.co.jp its ranking in this report—represents just 33.8% of the company's total revenue. Of the integrated component, the company's direct mar- keting unit, some 39% of revenue, carries the name, 360 Youth; the Traditional agencies sales promotion side, called Alloy Marketing & Promotion, contributes ADK America about 55% of revenue. The remaining integrated revenue stream is Agency totals interactive. The company also has a database of more than 9.4 million Revenue ($ in millions) 2002 2001 % chg Generation Y customers. Alloy reported total revenue of $299.3 million U.S. .$3.8 $3.2 18.8 in 2002 (fiscal year-end Jan. 31, 2003), up 80.7%. The company gener- Employees 2002 2001 % chg ated revenue from merchandise sales of $167.6 million. That compo- U.S. .28 24 16.7 nent is not in the integrated marketing total. Alloy's growth spurt has Notes: ADK America is a traditional ad agency largely representing come through acquisition, beginning in November 2001 with its pur- Japanese companies in the U.S. chase of 360 Youth, a division of MarketSource Corp. that offers a full Top Executive: Shinya Miyata, chmn & CEO array of integrated and tactical media and marketing solutions to adver- Headquarters: ADK America / 970 W. 190th St., ste. 710, Torrance, tisers targeting both the teen and college markets. Other acquisitions in Calif. 90502 / Phone: (310) 630-3600 / Fax: (310) 630-3620 / URL: 2002 include Market Place Media, a placement and promotion compa- www.adkamerica.com ny that serves colleges, multicultural and military markets through print, broadcast, out-of-home and event media, and Youthstream Media Network, owner of 20,000 out-of-home display media boards in high 21 Aspen Marketing Group schools and colleges.
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