us media 2018 year in review
TRANSCRIPT
COMvergence WorldwideFounder & CEOOlivier Gauthier
US MEDIA 2018 YEAR IN REVIEW
#4AsDecisions2020
March 25, 2019 CONFIDENTIAL
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US MEDIA INDUSTRY 2018 YEAR IN REVIEW
PITCHES & MOVES, RANKINGS & MARKET SHARES, TRENDS & OPPORTUNITIES,
MARCOM ACQUISITIONS, TRANSPARENT REPORTING
March 25, 2019 CONFIDENTIAL
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138 Media Pitches & Moves
98 won/retained by int’l media agency networks
40 by independents/standalone agencies (not part of the agency networks)
9 retained by the incumbent
Total New Business Value (including retentions)
Publicis Media +$1.8B
Horizon Media +$806M Omnicom OMG -$512M
$12.3B Total Spending
$4.8B from global & multi-market pitches (34)
$7.5B from US-only or N.A. pitches (104)
$1.7B from retentions
Top 5 Media Pitches & Moves
1. Chrysler FCA
2. T-Mobile 3. GlaxoSmithKline 4. Mars 5. Microsoft
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2018 AT A GLANCE
March 25, 2019 CONFIDENTIAL
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MAJOR MEDIA PITCHES & MOVES 2018
BUDGET ≥$130M OUT OF TOTAL SPEND REVIEWED OF $12.3B U
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March 25, 2019 CONFIDENTIAL
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THE BIG 6: MEDIA AGENCY GROUP RESULTS
March 25, 2019 CONFIDENTIAL
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BEYOND THE BIG 6: INDEPENDENT MEDIA AGENCY RESULTS
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March 25, 2019 CONFIDENTIAL
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THE BIG 6: BILLINGS & MARKET SHARES
US Billings Proj. 2018in US $B
Industry Market Shares
Headcount
1 Publicis Media 17.6 13.5% 6,881 Spark Foundry 6.3 4.8% 1,537 Starcom 4.8 3.7% 1,266 Zenith 4.3 3.3% 1,188 Blue 449 1.8 1.4% 416
2 OMG 15.2 11.7% 4,500 OMD 7.9 6.1% 2,200 Hearts & Science 3.7 2.8% 970 PHD 3.2 2.5% 1,200
3 GroupM 14.6 11.2% 6,600 Mindshare 5.6 4.3% 1,223 Wavemaker 3.5 2.7% 751 MediaCom 2.6 2.0% 876 Essence 2.1 1.6% 770 m/SIX 0.2 0.1% 84
4 Dentsu Aegis Network 8.2 6.3% 10,062 Carat 6.8 5.2% 1,750 Vizeum 0.8 0.6% 145 360i 0.5 0.4% 851 dentsu X 0.2 0.1% 145
5 Mediabrands 8.0 6.1% 3,000 UM 4.9 3.8% 1,403 Initiative 3.1 2.4% 1,145
6 Havas Media 2.1 1.6% 822
Media Agency Groups/ Networks
March 25, 2019 CONFIDENTIAL
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THE TREND: ADVERTISERS SEEK DEDICATED/BESPOKE UNITS
• Amtrak – Amtrak Partnership • Bayer – TimeLife • BP - EnergyMedia • Chanel - PLUS • Colgate – Red Fuse • Ford – Global Team Blue • IBM – Team IBM • L’Oréal - L’Equipe L’Oréal • Mazda – Garage Team Mazda • Nestlé - OpenMind • Newell – Team Newell • Walgreens-Boots - Team WBA
• Campbell’s Soup – Campbell’s Team • Citi – One Citi Global • JM Smucker - PSOne • Lenovo – Lenovo One Media • Marriott – Marriott One team • Mattel – Team Mattel • Molson Coors - Connect at PM • Toyota - Team Zest
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Media/Digital Media Unit Integrated Unit
• Amazon – Team Amazon • J&J – J3
• Apple – Media Arts Lab
• Daimler - AMQ/Artful Media Intelligence
• Nissan - Nissan United
• AB-InBev – V2 • Intel – Team Intel • Subway – The Franchise @D.A.N.
March 25, 2019 CONFIDENTIAL
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March 13, 2019
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March 25, 2019 CONFIDENTIAL
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+240 major US Creative moves +280 major US Media moves
62 advertisers placed both their creative and media accounts in review
20 of these advertisers selected agencies from the same holding company
WPP 8 accounts
Havas 1 account
IPG 6 accounts
Dentsu 1 account
Omnicom 2 accounts
Publicis 2 accounts
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THE TREND: DESPITE UNBUNDLING, MARKETERS STILL ATTRACTED TO AN INTEGRATED SOLUTION
Over a 24-month period (January 2017 – December 2018)
CONFIDENTIAL COM
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March 25, 2019
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THE TREND: ADVERTISERS REVIEW CREATIVE… MEDIA FOLLOWS
Advertiser CREATIVE Review
MEDIA Review
Gap between the two reviews
Amex Q2 2017 Q4 2018 18 months
DanoneWave Q1 2016 Q1 2018 24 months
FCA Chrysler 2016 2018 18 months
GlaxoSmithKline Q2 2016 Q3 2018 24 months
Henkel Q2 2017 Q4 2018 18 months
Hilton Q4 2017 Q3 2018 9 months
Intel Q3 2016 Q4 2018 24 months
Liberty Mutual Q4 2017 Q2 2018 6 months
Luxottica Q2 2016 Q4 2018 24 months
Advertiser CREATIVE Review
MEDIA Review
Gap between the two reviews
Macy’s Q3 2017 Q2 2018 9 months
Marriott Q2 2016 Q1 2018 18 months
McDonald’s Q2 2016 Still in review -
Sprint Q4 2016 Q2 2017 6 months
Staples Q3 2016 Q3 2017 12 months
T-Mobile Q4 2017 Q2 2018 6 months
Pandora Q2 2016 Q4 2017 12 months
Uber Q4 2016 Q4 2017 12 months
Wal-Mart Q3 2016 Q4 2016 3 months
TIMEFRAME: ≤24 MONTHS
March 25, 2019 CONFIDENTIAL
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OPPORTUNITIES ABOUND: $35B OF MEDIA SPEND COULD POTENTIALLY BE
REVIEWED IN THE NEXT TWO YEARS
75 TOP ADVERTISERS HAVE NOT REVIEWED THEIR MEDIA AGENCY ARRANGEMENTS SINCE 2015
March 25, 2019 CONFIDENTIAL
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SIX ADVERTISERS WITH SPENDING GREATER THAN >$1B HAVE NOT REVIEWED THEIR MEDIA AGENCY ARRANGEMENTS SINCE 2012
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March 25, 2019 CONFIDENTIAL
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14 ADVERTISERS WITH SPENDING RANGE FROM $500M TO $1B HAVE NOT REVIEWED THEIR MEDIA AGENCY ARRANGEMENTS SINCE 2015
March 25, 2019 CONFIDENTIAL
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MARCOM AGENCY ACQUISITIONS
COMVERGENCE RECORDED 280+ AGENCY ACQUISITIONS OVER THE PAST THREE YEARS – 65 TOOK PLACE IN THE US
March 25, 2019 CONFIDENTIAL
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THE BIG DEALS IN 2018 (GLOBAL)
# Holding Company/
Management Consultancies
ALL AGENCY SEGMENTS (creative, digital and media)
# of Acquisitions Headcount
Total estimated Revenues (in US $M)
1 Dentsu 19 2,337 $241M 2 WPP 12 1,528 $517M 3 Publicis Groupe 8 548 $59M 4 Accenture Interactive 7 1,894 $238M 5 Deloitte Digital 6 115 $22M 6 Hakuhodo 5 818 $73M 7 Interpublic (IPG) 4 2,242 $667M 8 Capgemini 4 1,890 $245M 9 Havas 3 205 $34M 10 Omnicom Group 3 515 $95M
March 25, 2019 CONFIDENTIAL
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65 US AGENCY ACQUISITIONS IN 3 YEARS (2016-18)
March 25, 2019 CONFIDENTIAL
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MAJORITY OF THE US ACQUISITIONS ARE DIGITAL
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March 25, 2019 CONFIDENTIAL
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TRANSPARENT REPORTING
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4A’s Members Receive a 15% Discount on COMvergence Products & Services
March 25, 2019 CONFIDENTIAL
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HQ (PARIS)
OLIVIER GAUTHIER
FOUNDER, CEO
+33 610245053
US (NEW YORK)
LISA SPIELMAN
US DIRECTOR
+1 917 854 6241
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