global advertising agencies

8/8/2019 Global Advertising Agencies

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GLOBAL ADVERTISINGGLOBAL ADVERTISINGAGENCIESAGENCIES

M&As and

STRATEGICALLIANCES


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y An Advertising Agency is an organizationthat on behalf of clients , drafts andproduces advertisements, places

advertisements in the media and plansadvertising campaigns. They may alsoperform other marketing functions ,including market research and consulting.


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Advertising AgenciesAdvertising AgenciesAGENCY HEADQUATERS REVENUE(INDOLLARS)

1. Omnicom Group New York City 10,481.1

2.WPP Group London 10,032.2

3.Interpublic GroupOf Companies

New York City 6,700

4.Publicis Groupe Paris 5,107.2

5.Dentsu Tokyo 2,887.8

6. Havas France 1,808.0


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DENSTU IncDENSTU Inc

y Japan

y 30% of total market revenue

y 27 countries -95% revenue from Japanitself.

y Domestic Subsidaires-47

y Overseas Subsidiaries:

USA-12

,Europe-14 and Asia -44


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y 1992-acquired 100% of BLD Europe(a Brussels firm)

y Middle East- 100% stake in Publi Graphics

y ASIA

1994-China(JV):Beijing Dentsu1996-Japan, formed Dentsu Tec Inc and JV with

Tokyo Softbank corporation

y USADentsu maintained seven subsidiaries through JV

with Young & Rubicam


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Effective Strategies followed byEffective Strategies followed by

Denstu:Denstu:

y Limited Service stop advertising , startcommunicating.

y

Mc Garry Bowen in USA local marketknowledge

y Increased Japanese Media companies inChina and other Asian markets.


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Saatchi & SaatchiSaatchi & Saatchiy New York

y Specializes in creative advertising services

and marketing campaignsy Procter &Gamble and Toyota

y In 2000- Publicis


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y 1970- Charles and Maurice Saatchi formthe agency

y 1970s-First ad agency acquisition- it

purchased E.G. Dawes and Motleyadvertising

y Merged with Garland Compton agency

y 1980s acquired clients like Black

&Decker, Allied Kyons.1982- bought Compton advertising.


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y 1990s- fall in profits leading to agencieslike Cordiant demerging and ad agencylike Cliff Freeman and partners buying

itself back.y 2000- S&S acquired by the Publicis

Groupe.


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Strategies ImplementedStrategies Implemented

y Identify and implement appropriatecommunication services.

y Focus Business Developmenty Financial discipline


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Ogilvy and MatherOgilvy and Mather

y 1948, founded by David Ogilvy

y Importance given to agency brand

y

Based in New York City and owned by theWPP group.

y 1989- the Ogilvy group was bought byWPP, a British holding company in a

hostile takeover


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y 19602 and 1970s marked a period ofexpansion and innovation.

y 1964- merged with Mather & Crowther Ltd

of London to become Ogilvy and MatherInternational.

y In order to enter the Turkish market, thecompany acquired four separate PR and

marketing companies by 2000 andmerged the companies into a singleagency


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y The initial strategy followed was that inorder to get new clients, the best methodwas to do notable work to the existing

ones. After the acquisition of the companyby WPP , importance was given to theirstrengths and the expansions madeaccordingly.


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Arnold WorldwideArnold Worldwide

y It is an American advertising agency, ownedby the French advertising andcommunications holding company Havas.

y It has a network of agencies located in 6countries and three quarters revenue is fromthe united states.

y The company was a conglomeration of

Boston based advertising agencies.y Arnold was acquired by Havas when it

purchased Synder communications in 2000


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y The agency has grown organically and

grown through partnership with havasagencies and through agency acquisitionslike McKinney &Silver. Further expansionswas halted in 2003 as Havas repositioned

Arnold as a creative specialist rather thana full global network.


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y Clients include:

Volvo, The Hershey Company, ESPN,Mc Donald's

global advertising agencies

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