WPP overtakes Omnicom as biggest marketing group

Monday, 10 January 2011 00:01 - - {{hitsCtrl.values.hits}}

WPP last year registered the largest revenue for a global publicly listed marketing services company, pushing Omnicom out of the top spot.

The UK-based group led by Chief Executive Sir Martin Sorrell was helped by its acquisition of top tier market research company TNS in October 2008.

The addition led to a 13 per cent increase in WPP’s calendar year revenue – from US$ 10.7 billion in 2008 to US$ 12.1 billion in 2009.

US-based Omnicom suffered a 12 per cent drop in revenue from US$ 13.4 billion in 2008 to US$11.7 billion in 2009 as, along with the rest of the industry, it was hit by reduced client spend.

However, Omnicom was the most profitable company in the rankings, which were compiled by Marketing Services Financial Intelligence.

Despite Omnicom’s post-tax profit falling 21 per cent and WPP’s holding steady, the former weighed in with a figure of US$ 793 million to the latter’s US$ 666 million.

Publicis Groupe claimed third place from US-based Interpublic in revenue terms, with just a four per cent drop to US$ 6.4 billion compared to Interpublic’s 13 per cent drop to US$6 billion.

Japan’s Dentsu, France’s Havas and the UK’s Aegis occupied the next three places.

Dentsu was strong on profitability, with post-tax profits of US$341 million outstripping the combined profits of Havas, Interpublic and Aegis.

It placed fourth in the ranking of post-tax profits after Publicis Groupe, which earned US$ 573 million.

Global agencies suffer 5.2% revenue decline: two-thirds hit by falling profits

Agency revenues earned by the largest publicly listed marketing groups around the world fell by 5.2% in 2009 according to a survey of their most recently published accounts.

Two-thirds of the companies experienced a fall in post-tax profit or an increased loss. And operating profit margins fell from 13.3% to 11.4% as employers failed to prune staff costs in line with declining revenues.

In the year when WPP Group overtook Omnicom Group as the world’s largest marketing group measured by revenues, it was roughly 100 times bigger than many UK listed companies like Creston, Cello Group and Media Square.

And while Japan’s Dentsu was only half the size of the US-based Interpublic Group and France’s Publicis Groupe, it was far more profitable – so much so that its post-tax profit was as big as that of Havas, Interpublic and Aegis Group put together.

These are some of the findings of a survey conducted by Marketing Services Financial Intelligence based on financial results reported last year by some of the largest publicly listed marketing groups in the world.