28 August 2009
How did marketing communications groups perform in 2008?
In 2008, almost all marketing communications groups in Romania have experienced solid growth in business. For the first time, two groups have passed the 100 million euro mark and saw their profits skyrocketing. For 2009, the most optimistic insiders forecast 5-10% growth.
the group passes the 100mn-euro mark
“It is very important that an agency (a homogenous group like all communications agencies in Romania) managed to breach the psychological mark of 100 million euros in one year alone”, Mihaela Nicola, CEO of the group told Wall-Street.
The company has an important media buying component, with nearly half of the turnover being generated by The Media Partnership – a buying company that serves a number of independent media companies. the group’s clients are generally confidential and are disclosed only in the presentations made to other potential clients.
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 (euro) |
BrandsTalk | 3,258,428 | +20.4 | 227,697 |
Media Investment | 30,019,258 | -4.9 | 1,660,823 |
House of Media | 11,426,891 | +2.35 | 376,005 |
Nicola Porter Novelli | 3,758,595 | +147.7 | 95,226 |
Touch Communication | 564,370 | +1.7 | 33,023 |
Innovaty Production | 31,079 | -86.7 | 8,077 |
New Media Agency | 664,067 | +5.85 | 51,805 |
BT Production Group | 4,924,294 | +23 | 532,454 |
The Media Partnership | 51,154,039 | +9.45 | 7,708 |
My Media | - | - | -1,485 |
Postercom | 46,529 | +12.2 | 13,850 |
Q Research | 97,255 | -0.3 | 40,937 |
Events & Production | 1,341,516 | +253.5 | 104,267 |
Navidoo | 187,010 | - | 20,033 |
Total | 107,473,331 | +7.9 | 3,170,420 |
Ogilvy - 62% growth
Last year’s solid growth will stabilize the group’s performance throughout this year, according to Manuela Necula (photo), CEO Ogilvy Group. “As we entered into 2009, we enjoyed a solid position: professional and skillful team, client portfolio built on ethical principles. And we had a good running start and that helped us cope with the first six months”.
Agency | Billings 2008 (euros) | YoY chg (%) | Profit 2008 (euro) |
Ogilvy & Mather | 7,097,984 | +118.6 | 541,057 |
Mindshare | 49,682,147 | +98 | 731,706 |
Mediaedge:cia | 29,960,259 | +19.3 | 227,301 |
Ogilvy PR | 4,420,059 | +73 | 62,094 |
OgilvyAction | 9.704,193 | +49.4 | 464,919 |
OgilvyOne | 2,306,825 | +99.9 | 90,949 |
Total | 103,171,467 | +62 | 2,118,026 |
Zenith Media, growth driver of Centrade
Last year, the PR division broke off from Saatchi & Saatchi, going as independent.
“I am very satisfied with the financial results of the group in 2008. For 2009 we aim at keeping at least the same level of 2008, and now after eight months, we even hope for a 5-10% increase. The growth engine of the group is Zenith Media that ranks first in top biggest media agencies, according to the Ministry of Finance”, said Radu Florescu (photo), CEO of Centrade.
The group’s profit rose in 2008 from 2.1 million euros to 2.7 million.
Agency | Billings 2008 (euro) | Yoy chg (%) | Profit 2008 |
Zenith Media | 62,597,406 | +15 | 1,728,858 |
Saatchi & Saatchi | 11,290,037 | +38.3 | 541,923 |
Saatchi & Saatchi X | 1, 512,899 | -30.8 | 55,679 |
Saatchi & Saatchi PR | 415,076 | - | 20,864 |
Pantone Studios | 2,170,516 | -25.9 | 63,912 |
Cable Direct | 3,639,739 | -16.1 | 311,952 |
Total | 81,625,673 | +13.3 | 2,723,188 |
Media lifts McCann WorldGroup's turnover
Apart from the three companies, McCann group also includes the PR agency McCann PR that reported a turnover of 1,614,550 euros and a profit of 186,255 euros. Interpublic group that rests under McCann WorldGroup Romania umbrella, does not hold stake in McCann PR.
In January 2009, Interpublic became majority shareholder in MRM Worldwide, following to fully acquire the group founded by Bogdan Enoiu (photo).
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 (euro) |
B.V McCann Erickson | 75,651,585 | +31 | 1,931,539 |
Momentum | 2,540,933 | -18.5 | 369,393 |
MRM Worldwide | 756,778 | +46 | 77,880 |
Total | 78,949,296 | +28.6 | 2,378,812 |
BBDO - up 14%
Ad agency Graffiti BBDO said its turnover fell 23.2%, citing poor activity in the private pension market, according to Cosmin Radoi, managing director of the agency.
Proximity’s turnover aggregates also Pleon Graffiti’s billings, the public relation agency of the group. Pleon recorded turnover of 1.2 million euros last year, up 10% YoY. As of this year, the company will become a separate entity.
In 2008, BBDO Romania appointed Nora Marcovici (photo) as the new CEO of the group, while Nicoleta Padure took over the Media Direction tasks from Razvan Vrabiescu. Cosmin Radoi was nominated as managing director of Graffiti BBDO.
Agency | Billings 2008 (euros) | YoY chg (%) | Profit 2008 (euro) |
Graffiti BBDO | 17,875,271 | -23.2 | 450,492 |
Media Direction | 54,816,922 | +32.5 | 1,243,147 |
Proximity* | 3,286,702 | +64.1 | 68,668 |
Total | 75,978,895 | +13.95 | 1,762,307 |
*includes PR agency Pleon Graffiti
Leo Burnett - solid performance across the board
The interactive marketing agency iLeo has nearly tripled turnover in 2008, up to 1 million euros, while Starcom MediaVest added 14.5 million euros to the group’s turnover. The marketing communications group reported across-the-board strong growth, except the ad agency Leo Burnett & Target, whose profit subdued 85%.
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 (euro) |
Leo Burnett & Target | 16,361,282 | +9 | 60,646 |
Starcom MediaVest | 41,323,336 | +54.3 | 1,441,874 |
23 Communications Ideas | 2,773,566 | +41.5 | 201,867 |
The Practice | 1,223,020 | +66.6 | 164,000 |
iLeo | 1,048,583 | +181.65 | 235,945 |
Tru Media Research | 66,020 | - | 48,814 |
Total | 62,795,807 | +40 | 2,153,146 |
"Excellent" year for Lowe group
The biggest growth in percentage terms was recorded by the public relation Lowe PR, whose profit margins remain low. On the other hand, Lowe & Partners’ profit shrank 87% and Initiative’s by 72%.
The communications group has made a round of strategic movements in 2008, such as the affiliation to Scholz & Friends under Lowe’s clout, development of the digital advertising-focused division, eLowe, reconfirmation of Orange account in Initiative portfolio as well as winning major accounts such as European Parliament or RBS, as mentioned by Savanciuc.
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 |
Lowe & Partners | 5,140,747 | +11.1 | 18,194 |
Initiative | 45,112,487 | +8.2 | 527,779 |
Lowe PR | 943,761 | +78.9 | 12,233 |
Medic One | - | - | 2,187 |
Brand Connection | 4,977,298 | +10.5 | 54,905 |
Total | 56,174,293 | +9.35 | 601,924 |
New accounts and economic boom strengthen Publicis' turnover
“As for Optimedia’s growth in 2008, the primary drivers were: the increase in client base, higher ad budgets as a result of the unprecedented economic boom over the past three years and not the least, the quantitative normal growth of the agency. It is very unlikely to experience a similar economic boom sooner than 3-4 years from now”, said Cezar Batog, general manager Optimedia.
With respect to the group‘s ad agency, Publicis, Alex Badila, managing director says the addition of new clients was the primary growth driver. Another factor is linked to the evolution of sales, and clients’business, that has implicitly led to an augmentation of sales volume and advertisers’ ad budgets.
“The increase in 2008 turnover at Publicis Events is primarily due to the fact that we‘ve managed to convince clients to grasp the meaning of communications with the help of events. In 2008, we registered a record number of events. We can also speak about a diversification in service range and harness staff expertise that boosted clients’ confidence in the company’s potential”, said Gabriel Constantinescu, general manager Publicis Events.
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 (euro) |
Publicis | 15,328,960 | +26.7 | 412,484 |
Optimedia | 31,239,531 | +84.6 | 691,570 |
Publicis Events | 2,130,987 | +43.1 | 91.300 |
Total | 48,699,478 | +59.6 | 1,195,354 |
Tempo, youngest communications group
In 2008, Tempo group acquired equity interests and integrated interactive agency Kinecto and QB Promotion, few months after founder Dragos Grigoriu (photo) sold Tempo Media to Aegis group. At the end of the year, Tempo took over a share of padlocked Young&Rubicam’s client portfolio.
Agency | Billings 2008 (euro) | YoY chg (%) | Profit 2008 (euro |
Tempo Advertising | 6,602,055 | - | 102,461 |
Tempo Media | 7,639,970 | - | 1,232,909 |
Brand Motion | 343,984 | - | 22,098 |
Rogalski Grigoriu PR | 795,493 | - | 57,741 |
Total | 15,381,502 | - | 1,415,209 |