73 million euros – McCann Group in 2009

TV advertising market shrank 25% this year while the print media suffered a whopping 60-70% decline, says Enoiu. “The amount of money pumped in the marketing and advertising industry will fall dramatically”, said the head of McCann, who attended the media briefing occasioned by BCR Open Romania 2009 tennis tournament. The crisis in the advertising industry is expected to last into 2010, and a recovery would probably set in one year later.

As for the performance of the group he runs, Enoiu expects total billings of 73 million euros in 2009, 14% less than 85 million euros a year earlier. The amount includes, apart from the combined turnover of the companies under McCann’s clout (that total 78.9 million euros according to the statement posted on the website of the Ministry of Finance), another 7 million euros, stemming from three-party contracts, wherein Universal McCann buys media space directly from providers. McCann Group includes B.V McCann Erickson (includes advertising agency McCann Erickson and the media agency Universal McCann), interactive agency MRM Worldwide and BTL Momentum.

As for the group’s client portfolio, the growth drivers were Coca-Cola, Vodafone, Heineken, and SC Johnson. Last week, the 800m pound - global media account of Vodafone was won by OMD agency. The decision will be applied to all markets Vodafone runs operations, which means that OMD Romania will take over the account from Universal Mccann. Vodafone Romania’s marketing budget amounted to 132 million euros on rate card, according to Alfa Cont. Sources in the market evaluate the net value at 20 million euros. In first half 2009, Vodafone spent a gross 46.9 million euros.

But will McCann eventually lose Vodafone account, a client it is serving for over 11 years? “We have a contract enforceable until end-2010. It was a contract gained in battle (e.n pitch). We shall see what happens after”, Enoiu added.

How advertising’s heavyweights see crisis in the industry

Globally, executives and analysts in the advertising industry have a more optimistic view on the moment the market will bounce back.

“It’s not a big rebound, but there are some interesting signs,” said Maurice Lévy, chief executive of Publicis Groupe, cited by nytimes.com. Lévy said he saw some positive signals, enough to declare that the low point of the current ad recession probably came in June.

For the year to come, Lévy sees a 2-3percent growth in global ad spending. “It is a business that will continue to grow, and we will see advertisers spending more in the sector.”

However, GroupM expects a 1.4 percent decline in global ad industry, while PricewaterhouseCoopers cited nytimes.com say the global ad spending will remain below 2008 levels four years from now.