OMD takes out top spot in RECMA ranking, pushing Carat into second
Omnicom Media Group’s media agency OMD has topped the Australian RECMA ranking for having the highest overall activity volume and a 14.4% market share.
The report also reveals significant growth rates for Havas Media (43%), Vizeum (39%), Blue 449 (37%) and PHD (31%), while UM, Dentsu X and Spark Foundry suffered declines.
The report suggests Australia has a media agency market worth approximately $12.112bn, which was up 8% between 2016 and 2017.
Staff numbers in the industry have also climbed 3%.
The report claims OMD had a 14.4% share of the industry in 2017, with $1.744bn of activity, up 11%.
OMD’s ascension means Dentsu Aegis Network’s Carat is now ranked second with a 13.8% industry share and $1.668bn of activity (up 4%).
OMD said the results came off the back of an incredibly successful 18 months for the company, which included retaining Beiersdorf and winning a host of new clients, including NSW Government, Belong, Simplot, UBET, TripAdvisor, Queensland McDonald’s and the consolidated Qantas International.
OMD CEO Aimee Buchanan said she was thrilled with the agency’s win.
“We’ve spent a lot of time and effort investing in our people and product to bring the best possible service to our clients, so we are absolutely thrilled with these results. It’s our shared passion for better results, delivered consistently, and with integrity, that sees OMD going from strength to strength,” she said in a company media release.
WPP/ Group M was the number one holding group in Australia, with agencies including Mediacom, Wavemaker and Mindshare giving it $3.343bn of activity and an industry share of 27.6%.
Dentsu Aegis Network (with Carat, Dentsu X and Vizeum) was in second with $2.834bn, ahead of Omnicom’s (OMD and PHD) $2.576bn.
Publicis Media (Starcom, Zenith, Blue 449 and Zenith) was in fourth position, ahead of IPG Mediabrands (UM and Inititiative) and Havas Media Group.
RECMA assesses agencies on 18 criteria, which fall into four main categories: competitiveness in pitches over three years, momentum (which includes new business balance, growth rates, hiring new talent and award wins), resources in digital and diversified services (including data and content), and agency capability to manage big accounts, local advertisers and relationship stability.
RECMA rankings (based on 2017 figures):
- OMD: $1.744bn (+11%)
- Carat: $1.668bn (+4%)
- Wavemaker: $1.300bn (+4%)
- Mediacom: $1.185bn (+3%)
- UM: $924.95m (-3%)
- Mindshare: $858.78m (+10%)
- Dentsu X: $839.93m (-10%)
- PHD: $832.64m (+31%)
- Starcom: $692.59m (+17%)
- Zenith: $531.52m (+3%)
- Initiative: $463.43m (+8%)
- Blue 449: $338.25m (+37%)
- Vizeum: $327.24m (+39%)
- Havas Media: $298.21m (+43%)
- Spark Foundry: $116.13m (-12%)
A number of large media agency moves have happened since the report was compiled including Procter & Gamble shifting from Mediacom to Starcom, Mondelēz International moving its $40m account from Carat to Mindshare, and Nestlé choosing UM ahead of incumbent Wavemaker.
These are, without question, the most inflated numbers you’ll ever see…
User ID not verified.
It’s our shared passion for better results, delivered consistently, and with integrity, that sees OMD going from strength to strength,”
5 commas. Just rolls off the tongue that line.
User ID not verified.
How is it that 12/15 of the agencies have had positive billings growth? I maybe missing something, though there aren’t that many big pieces of business that sit outside of these agencies (groups) … just doesn’t add up?
User ID not verified.
The much hyped “Buying power” of an agency means less + less when everything is moving towards being bought via biddable means….Nice work OMD but in reality means sweet FA
User ID not verified.
The wins which aren’t existing business or consolidation or something in Queensland or from 2017 (simplot) are tiny. There hasn’t been any real big wins. PHD seemed to have grown through genuine new business.
User ID not verified.
I know this site presents quality dependent articles or reviews and additional material, is there any other web page
which presents such information in quality?
User ID not verified.