RECMA
The ultimate intelligence on the media agency industry
US
Title : Date : City :
Jack Myers Media 09/2006 Business Report
New York
Media Owners Using RECMA Report to Target Agency Relationships Major U.S. Media Agency Evaluation Released By Jack Myers Jack@Mediavillage.com
As media sellers develop sophisticated cross platform, integrated marketing, branded entertainment and diversified opportunities for advertisers, they need to view media agencies in an unfamiliar context. Beyond traditional buyer/seller negotiations and occasional planner meetings, they must now consider media agencies as partners who bring a wealth of diversified capabilities and independently operating divisions to the table. This creates new pressures on media sellers to evaluate and differentiate media agencies based on completely new and different criteria. RECMA, which provides advertisers and media agencies globally with billing data, client shift information, and insights on competitive positioning is now making its first domestic U.S. report available to media sellers to assist them as they expand their comprehensive view of agency relationships. "We are providing a solid base of insight and a great tool and resource for media companies to identify their best strategic partners and plan how to extend their sales efforts to added agency divisions where they need to have relationships," commented Olivier Gauthier, RECMA Partner and Head of Research in an exclusive interview with Jack Myers Media Business Report. Eudes Delafon, Founder and Director of Research for Paris-based RECMA, explains "the report is useful to have both a long-term view of how the agency market is likely to consolidate, and identify which agency will be better for partnerships for specific clients and be the best for growth." Delafon suggests the quarterly RECMA reports and regular online and e-mail updates "offer a very clear focus on the
Paris :: London :: New York :: Mumbai :: Hong Kong
Head office | 12, avenue de l'Opéra | 75001 Paris | France www.recma.com | +33 (0)1 40 15 02 92 | contact@recma.com
RECMA
The ultimate intelligence on the media agency industry
future of individual media agencies. Media owners can see clearly how agencies are building for the future based on the client services they are developing and their relative abilities." This information, Delafon believes, provides insights for media companies to orient their sales strategies and targets. In addition to detailed client-by-client spending data for each agency, RECMA includes information on each agency's diversified services, affiliates and divisions, including overall performance ratings evaluating the comparative competencies of each agency in different areas. As media expand to multiple platforms, they require a basic roadmap of which agency controls buying and planning for each platform. RECMA provides this roadmap, says Gauthier. "The U.S. report offers media owners details on the strengths and weaknesses of the agencies they are dealing with on a daily basis," Gauthier comments. "For the top 13 media agencies plus Horizon Media, we track client lists, client wins and losses, new business performance, plus insights on the tools, strategies and resources of each agency. We can see some are focusing on direct response, the engagement issue, interactive and new media, and more." Reports include both media and creative assignments and updates for more than 1,200 advertisers. The RECMA report provides detailed data and insights for each of the media agencies, including client spending and diversified involvement in 14 different areas of specialization. As part of an annual subscription to RECMA, the company is including a detailed report on Interactive media networks. Gauthier says the company is also developing special reports on branded entertainment and product placement and an additional report on Hispanic and multi-cultural agencies. "All the major agencies have developed multi-cultural units, such as Tapestry, OMD Latino, Mediacom Latino and Carat Diversity. Most of the agencies have developed integrated marketing and branded entertainment units. It's important to understand which agencies are expanding these and other efforts and how successful they are," Gauthier explains. "The diversified services agency capabilities are expanding and changing very quickly," he adds. "Agency networks are acquiring specialized companies, such as Zenith's acquisition of Moxi Interactive, which signals increased activity for them." RECMA provides clients with e-mail alerts and the RECMA website, which is updated daily. Gauthier points to a continuing trend toward agency consolidation and alignment by major advertisers. "We're following the Kellogg's pitch, Unilever's global review on a market-by-market basis, the Wal-Mart domestic consolidation. Domestic clients such as Wal-Mart and P&G are allocating their spending differently, and several advertisers are moving money into interactive and new business models, with less print and television. All of the top 100 advertisers are considering moving increased budgets into digital video. We track all this and develop trend reports based on our insights." Delafon explains "it is possible to compare trends on a three year basis, evaluating agency competitiveness in planning and buying and all the parameters that are evaluated in client decisions." The RECMA reports are developed primarily for advertisers to support their agency review and selection process. The company plans to expand the reports to include twenty additional media agencies and full service agency media departments, including WB Doner, Crispin Porter + Bogusky, The Richards Group, GSD&M, Palisades MediaGroup and Mediasmith. Gauthier promises RECMA will cover most of the agency players in the U.S. market in the next three years. For more information on available RECMA reports and subscription costs, contact Francisco Arica-Cruz at Francisco@recma.com or contact Dani Levovitz at Myers Publishing, Danielle@mediavillage.com. Myers Publishing LLC has a professional relationship with RECMA.
Paris :: London :: New York :: Mumbai :: Hong Kong
Head office | 12, avenue de l'Opéra | 75001 Paris | France www.recma.com | +33 (0)1 40 15 02 92 | contact@recma.com