Report: 5.8% Decline In 2020 Global New Business As Creative Wins Dry Up (But WPP, MediaCom & Havas Shine)

Report: 5.8% Decline In 2020 Global New Business As Creative Wins Dry Up (But WPP, MediaCom & Havas Shine)
SHARE
THIS



Even in a tumultuous year, new business revenue in 2020 was down by single-digits at 5.8 pr cent globally thanks to a dynamic media landscape. Media new business revenue for the period of January to December 2020 increased by 6.9 per cent, making up for a much weaker creative market (-12.6 per cent), according to new business data from independent marketing consultancy, R3.

“The numbers tells us something deeper than a desire for greater efficiency,” said Greg Paull, co-founder and principal at R3. “Technology has made media a key driver of marketing. Being at the right place, at the right time, at the right price makes a significant impact when it comes to conversion. Creative is reliant on media for form, visibility, and engagement. Marketers recognise the shift and are looking for partners who can lead.”

Creative sees 14 per cent more pitches, but 12 per cent less revenue

Havas Worldwide is the top performing agency globally in creative new business, moving up from third place the previous year. Droga5, VMLY&R, Isobar, and Ogilvy follow, making up the top five. Notably, Droga5 has moved ten places in R3’s new business league in the past twelve months, winning global accounts for Airbnb and Huggies. VMLY&R leapt from twentieth spot to third, finding its stride since restructuring in 2018.

MediaCom, the only media agency to maintain a position in the top five

Though the media new business landscape has been resilient, revenue from wins for the top five media agencies decreased by 27 per cent compared to the previous year. MediaCom leads in new business wins, followed closely by Initiative, Wavemaker, Starcom, and OMD. This marks a shift in top performers, as MediaCom was the only agency to maintain a top five position from the previous year.

“Like it’s revamped agency proposition which focuses on systems thinking and business performance, MediaCom is using language that resonates with clients,” said Paull. “Marketers expect data expertise and capability from all their partners. Media agencies need to continue to adjust their offering to really understand their clients’ business.”

Though the media new business landscape has been resilient, revenue from wins for the top five media agencies decreased by 27 per cent compared to the previous year. MediaCom leads in new business wins, followed closely by Initiative, Wavemaker, Starcom, and OMD. This marks a shift in top performers, as MediaCom was the only agency to maintain a top five position from the previous year.

“Like it’s revamped agency proposition which focuses on systems thinking and business performance, MediaCom is using language that resonates with clients,” said Paull. “Marketers expect data expertise and capability from all their partners. Media agencies need to continue to adjust their offering to really understand their clients’ business.”

WPP tops holding company performance

WPP outperformed the holding groups, winning double the revenue and number of new business wins than its closest contender Publicis Groupe. WPP’s direction, which is more aligned to the fast-digitalizing marketplace, has enabled the holding company to surpass its previous year’s Creative revenue by 134 per cent and Media revenue by 161 per cent. Interpublic, Omnicom, and Dentsu round up the top five performers. Dentsu ranks second in total number of wins.

 

 

 

Please login with linkedin to comment

R3

Latest News

Creative abstract web streaming media TV video service technology, multimedia business internet communication and cinema content production concept: 3D render illustration of modern curved smart television screen display monitor with endless walls of screens with color photos and colorful displays with different images on blue background
  • Media

Comscore And Samba TV Launch CTV Partnership In Australia

Comscore has today announced the expansion of its TV measurement footprint to Australia, driven by its partnership with Samba TV, the leading global provider of omniscreen advertising data and audience analytics. The new connected TV (CTV) measurement solution, launched last year in select European markets, has now reached this key market in the Asia-Pacific (APAC) […]

How To Win With Video Advertising In 2021
  • Partner Content

How To Win With Video Advertising In 2021

Here are must-read tips on how to win with video advertising. Sadly, no tips on today's horse racing at Eagle Farm.

Partner Content

by B&T Magazine

B&T Magazine
Think HQ Makes 18 New Hires
  • Media

Think HQ Makes 18 New Hires

Absolutely no one knows anyone else's name in the Think HQ office this week after agency announces 18 new hires.