THE BIG PICTURE! Current global advertising scenario.

[vasanth]

There has been a lot happening with the advertising industry. The battle for pole position is on between the top advertising guns, WPP, Omnicom, Publicis Groupe and Interpublic Group of Co. After hitting a record low, the agency business in recovering quick with U.S revenue jumping by 7.7% in the domestic market causing a worldwide rebound in the advertising and marketing services. However this has taken a bad toll on the employment in the said sections with the top companies laying off 22,000 employees in 2009. The employment has now recovered with the same companies adding 11,000 jobs but studies show that complete recovery will not take place any sooner than 2013.

Share values in WPP, Omnicon and Interpublic have reached a new peak since 2007. Revenues for marketing and communication agencies rose by almost 8% that is a growth of about $30 Billion according to reports by AdAge Agency which tracked the performance of over 900 agencies.
The top guns are currently on a merger and acquisition frenzy to capitalize on the unexpected growth. WPP in 2010 acquired 25 small and midsize agencies and media houses including Taxi, IBehavior and Commarco Holding. Omnicon on the other hand has disposed units with combined annual revenue of about $120 million, they have disbanded the Agency.com and split its offices among TBWA worldwide network agencies and also sold a majority stake in US P.R firm Bordeur Partners. Studies suggest Omnicon is undertaking review of global operations with an aim to cut off their low growth business holdings and focus on their existing high growth markets.

While the top advertising agency groups go neck to neck to neck, all we have to do is watch and wait for the end results of their moves and see how it changes the advertising industry.

Vasanth Poodipeddi.

[amey katkar]

awesome post vasanth...keep it up...ur hardwork is seen through this article and presentation..!!!

[vasanth]

Thanks Amey...

[amey katkar]

goood analysis too