Methodology: How the Top 100 is compiled
campaignlive.co.uk, Monday, 26 March 2012 12:00AM
A look at how Campaign's league tables were put together for the 2012 School Reports feature.
The compilation of the Top 100 tables is an ongoing process. Three months before publication, agencies on Nielsen's database were asked to update their billings and give details of account moves (note that updating billings/account move data does not in itself guarantee inclusion). Reference to 2010 rankings is based on what is known now, so can differ from printed results last year. This is either as a result of agencies that were late in updating their data last year or because of other changes, such as mergers or agencies that have ceased trading.
The media measured in all tables in the report are television, display press, radio, cinema and outdoor (which does not include airports, ambient, international sites or point of sale). For the second year running, we now include online display advertising spend also. Direct marketing such as direct mail is not included, hence the low billings for most of the direct marketing agencies featured. Agency client assignments are compiled by Nielsen from data supplied by agencies and media owners on a regular basis, alongside information published in the marketing press. The figures are estimated costs of buying media space based on a number of factors, including ratecard, discounts and viewing figures. Data does not include actual billings or agency revenues. Press expenditures include an Advertising Association discount factor, which varies according to the sector and quarter.
Not surprisingly, agencies lobby hard to influence the way data is presented; the Top 100 tables, school reports and scores can affect everything from share prices to client perceptions to staff motivation. But the objective representation of the dynamic agency market is crucial, so the tables are checked rigorously and analysed to ensure the data presented is a fair reflection of the information we are given.
In order for agency brands to be reported as a single listing within the table, the agencies need to have provided Nielsen with unequivocal proof that they are recognised as one legal entity, which is then checked at Companies House.
The Top 100 has been affected by the Sarbanes-Oxley Act in the US, which prohibits the public release of unaudited financial information. Sarbanes-Oxley has led agencies owned by public holding companies listed in the US, such as Omnicom, Interpublic and WPP, to withhold financial data, hence the absence of declared billings and some income data in the tables.
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This article was first published on campaignlive.co.uk
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