AGENCY PERFORMANCE LEAGUE: This year’s survey finds many leading agencies in the UK struggling to convert rising incomes into substantial profits

By CLAIRE COZENS And FRANCESCA NEWLAND, campaignlive.co.uk, Friday, 01 October 1999 12:00AM

Many of the UK’s leading advertising agencies are failing to translate growing income into profits, and this is due to bad - and often overpaid - management.

Many of the UK’s leading advertising agencies are failing to

translate growing income into profits, and this is due to bad - and

often overpaid - management.



These are the depressing conclusions to emerge from this year’s annual

survey of the UK’s top 50 advertising agencies, prepared by Willott

Kingston Smith and published exclusively in Campaign.



While the top 50 UK agencies enjoyed a 7 per cent increase in income,

average profit margins dropped from 6.6 per cent to just 6.5 per cent -

well below the 15 per cent benchmark set by Willott Kingston Smith.



And it was among the bigger, multinational agencies that margins were

the poorest, with Bates Dorland, Saatchi & Saatchi, Leo Burnett, Young &

Rubicam, Ammirati Puris Lintas and Grey Advertising all revealing

negative profit margins.



This can, in many cases, be attributed to clever accountants juggling

the figures to reduce the tax bill. But, according to WKS, this is not

enough to explain why Grey incurred its eighth loss in ten years and Y&R

its sixth.



The figures used in the survey are taken from accounts filed at

Companies House and it is worth noting that this means they do not

always compare like with like. Whereas the Y&R Group, which reported the

highest gross income figure for the period, is a holding company for a

number of Y&R businesses as well as the advertising agency, others, such

as Lowe Howard-Spink, report their agency figures separately.



At Lowe, profit margins declined from 20.9 per cent in 1996 to a

below-average 6.4 per cent in 1997. While this was partly due to the

hiving-off of its media operations into the Lowe Group’s Western

International Media, and a resultant restructuring at the agency, it can

also be attributed to the loss of the Lloyds Bank and Littlewoods

accounts.



Mandy Merron, a partner at WKS, believes the biggest threat to the

advertising sector at present is its tendency to expand staff resources

faster than is justified by growth in output. Merron says even those

agencies that are resisting that temptation are giving in to the

pressure to pay bigger salaries and bonuses to the people they regard as

most important to the business.



Home-grown UK shops on the whole fared better than the big,

foreign-owned agencies - perhaps because they are not paying out huge

salaries to their top managers. The best profit margins were achieved by

four UK agencies: Faulds Advertising with 23 per cent; Partners BDDH

with 22 per cent; Maher Bird Associates with 21.8 per cent; and Rainey

Kelly Campbell Roalfe with 21.2 per cent. Rainey Kelly and BDDH have

since sold to US groups.



Nigel Long, the chief executive of Partners BDDH, comments: ’Many

agencies are not as focused on their commercial activities as they

should be.’



But there were some exceptions to the trend. M&C Saatchi failed to

achieve the profit margins expected of it, moving up to 8 per cent in

1997 from 4.9 per cent the previous year. One of the reasons for this

could be that the biggest growth in staff numbers was at the agency - it

took on 94 new employees during the period.



Nick Hurrell, joint chief executive of M&C Saatchi, says the low margins

for 1997 are to be expected given that the agency only set up in

1995.



He says: ’We are a young business and our margins are increasing

steadily and encouragingly. The margins in the sector as a whole are

under pressure. That is why we are diversifying into other areas, such

as sponsorship, where margins can be higher.’



Another relatively new agency to have turned in low margins is St

Luke’s, which had an operating profit margin of 8.13 per cent in 1998,

down from 19.3 per cent in 1997. According to WKS, the agency was

overstaffed during 1998, with staff costs accounting for 62 per cent of

gross income and output per head of just pounds 67,543 - well below the

sector average of pounds 81,769. But David Abraham, chief operating

officer at St Luke’s, points to the agency’s Midland Bank campaign,

which was prepared in 1998 but did not break until January 1999.



’We had to staff up in 1998, and working on Midland meant we had heavier

staff costs in 1998,’ he says. ’Our income did increase, but because the

income for Midland did not come in until this year, the increase in our

costs was greater.’



When it comes to operating profits, UK agencies again came out on

top.



Among the most profitable were Abbott Mead Vickers BBDO with pounds 5.9

million, Bartle Bogle Hegarty (pounds 3.5 million), HHCL & Partners

(pounds 1.3 million), Partners BDDH (pounds 1.4 million) and M&C Saatchi

(pounds 1.4 million). Interestingly, a lot of these have since cashed in

on their success by selling out to foreign groups - most recently Rainey

Kelly, which made a profit of pounds 1.2 million in 1998 and has just

sold to Y&R.



The results of both Cordiant and the Saatchi & Saatchi Group were

distorted by their demerger. Both reported losses for the period, but

were able to offset them with massive gains from the demerger. At

Saatchis, an exceptional income of pounds 99 million hides an operating

loss of pounds 5 million for the period, while Bates Dorland made a

pounds 24.5 million gain due to the waiver of former group loans, more

than making up for a pounds 3 million loss.



During the survey period, total agency income grew by 7.3 per cent but

staff costs rose 8 per cent, and other costs grew 6.7 per cent. As a

result, profit margins dropped by 1 per cent. As WKS points out, if this

is what happens in relatively good times, the potential for major

problems when the economy eventually stalls is worrying.



Staff costs soaked up an average of 53.4 per cent of agency income -

slightly higher than the benchmark of 50 per cent, which WKS has not

recorded since 1990. While the situation improved in the mid-90s, it has

been getting steadily worse since then.



Partners BDDH, which operates a profit-related pay scheme for all its

staff, had the highest employment cost per head at pounds 56,339,

compared with an industry average of pounds 43,634. Partners BDDH’s

staff costs per head rose by 27.75 per cent on the previous year, partly

because the sale of the agency to Arnold Communications meant ending a

long-term incentive plan and making early pay-outs.



Other agencies that paid well were Rainey Kelly, with an average staff

cost of pounds 55,953, and Clark & Taylor Advertising (pounds 55,686).

Less generous were Saatchis and Y&R, which had an average employment

cost per head of pounds 34,527 and pounds 36,656 respectively.



Despite its high employment costs, Rainey Kelly achieved the highest

profit per employee of pounds 28,581. The agency made almost as much

profit as Partners BDDH with 16 fewer staff. Second-highest was Maher

Bird, which made profits of pounds 27,136 per member of staff.



The bad news for agency directors is that the fat cats are getting

thinner - although only slightly. Overall, directors’ remuneration

declined a little, but the top earners still did well. Ignoring pension

contributions, the highest-paid director overall was Martin Sorrell,

although his earnings for the year fell by 50 per cent, leaving him with

pounds 1.3 million. However, he was in line to receive a further 6.4

million shares last month under a long-term incentive scheme.



The agency with the highest-paid director was WCRS, where someone -

presumably Robin Wight - earned pounds 676,000.



AMV and APL also paid out more than pounds 600,000 to a single director,

and one of the biggest increases in earnings was at Roose & Partners,

where the chairman, Ted Roose, awarded someone - almost certainly

himself - a 152 per cent pay rise to pounds 388,000. The highest-paid

director earned more than pounds 250,000 at 21 of the top 50 agencies,

with three of these earning more than pounds 500,000.



The Financial Performance of Marketing Services Companies survey is

available for pounds 175 from Willott Kingston Smith, Quadrant House,

80-82 Regent Street, London W1R 5PA. Tel: 0171-304 4646.



GOING UP



The merger of Banks Hoggins O’Shea and FCB by the latter’s European

president, Harry Reid, at the end of 1998 failed to set the ad world on

fire. However, BHO’s figures for 1997 reveal some of the attraction.



It had one of the highest operating profits per head in the country,

related to an operating profit margin of 14.49 per cent. The business

was growing, with profits up by almost 66 per cent. FCB, however, was

suffering an 11.86 per cent fall in operating profits, despite an 11.21

per cent increase in gross income.



But the picture was still incomplete: FCB and Delaney Fletcher Bozell’s

parent, True North, merged their two networks last month.



On paper, the prospect of merging Banks Hoggins O’Shea/FCB and Delaney

Fletcher is attractive. Both are healthy businesses (although some of

Delaney Fletcher’s business and its management team will not be folded

into the merged agency).



The merger will throw up cost efficiencies estimated at dollars 25

million around the world.



GOING DOWN



Grey’s losses in 1998 reveal the thinking behind its merger with Mellors

Reay last summer. The losses, from operating profits of pounds 1.5

million the year before, were anticipated, and in a cost-cutting measure

Grey, Mellors Reay and Creative Strategies were merged.



Steve Blamer, the agency’s chief executive, predicts that the resultant

savings will add pounds 4 million to 1999’s bottom line. The departure

this year of the agency’s former chairman, Roger Edwards, and of

vice-chairman, Carol Reay, as well as other management will enhance the

savings.



Grey took an undesirable 42nd place in operating profits per head. The

position highlights inefficiencies as it was the country’s

eighth-biggest shop in terms of gross income per head.



Mellors Reay, already owned by Grey, also needed to call in some

savings: its profits fell by almost 50 per cent to pounds 285,000.



The merger not only cut overheads, but enabled Grey to get the

high-profile creative director it wanted in Tim Mellors.



TOP 50 AGENCIES

Rank  Rank  Agency                     Year end   Gross    Chge  Opera-

lat-  prev                                       income       %    ting

est                                              pounds          profit

                                                    000          pounds

                                                                    000

1     1     Young & Rubicam Group      31/12/97  65,370   10.11  -2,076

2     2     The Ogilvy Group

            (Holdings)                 31/12/97  54,989    6.59   5,180

3     3     Saatchi & Saatchi Group    31/12/97  54,394    2.78  -5,005

4     4     J. Walter Thompson Group   31/12/98  42,407   -2.58   4,644

5     5     BMP DDB                    31/12/98  40,619   10.55   5,045

6     7     McCann-Erickson

            Advertising                31/12/98  39,303   13.48   2,854

7     6     D’Arcy                     31/12/97  35,639    8.83   4,038

8     8     Abbott Mead Vickers BBDO   31/12/97  31,709    5.34   5,940

9     9     Bartle Bogle Hegarty       30/06/98  31,133    5.00   3,497

10    10    Bates Dorland              31/12/97  26,024   -6.79  -2,986

11    12    Leo Burnett                31/12/97  21,843    1.74  -1,045

12    11    Lowe Howard-Spink          31/12/97  21,024  -18.23   1,353

13    16    Grey Advertising           30/09/98  20,592   34.44    -319

14    13    Ammirati Puris Lintas      31/12/98  19,856    4.91    -531

15    14    Publicis                   31/12/97  19,293    2.48   3,448

16    19    M&C Saatchi                31/12/97  18,362   42.23   1,441

17    15    WCRS                       31/12/98  16,558    6.83   3,507

18    17    Euro RSCG                  31/12/96  14,880   13.77   1,837

19    20    McCann-Erickson

            Manchester                 31/12/97  14,420   23.21   2,017

20    21    HHCL & Partners            31/12/97  10,921    1.15   1,332

21    22    The Leagas Delaney

            Partnership                31/12/97  10,085    9.60     423

22    18    Austin Knight              31/12/97   9,673    7.59   1,482

23    25    BDDP GGT                   30/04/98   8,866   28.07   1,869

24    23    TBWA GGT Simons Palmer     31/12/97   8,043  -18.63   1,001

25    24    Collett Dickenson

            Pearce UK                  31/12/97   7,969   -3.21     462

26    26    FCB Advertising            31/12/96   6,885   11.21     706

27    32    Partners BDDH              31/12/98   6,627   44.69   1,456

28    29    St Luke’s Holdings         31/12/98   6,214   13.17     505

29    28    BDH Communications         30/04/98   6,147    4.33     146

30    33    Delaney Fletcher Bozell    31/12/97   6,100   34.66     567

31    48    Rainey Kelly Campbell

            Roalfe                     31/12/98   5,799   54.76   1,229

32    31    Clark & Taylor

            Advertising                31/07/98   5,169   10.76     197

33    30    DMB&B Financial            31/12/97   5,053   12.06     825

34    40    Duckworth Finn Grubb

            Waters                     30/09/98   5,012   40.43     920

35    38    Faulds Advertising         31/12/97   4,689   20.82   1,078

36    34    Banks Hoggins O’Shea       31/08/97   4,395   50.57     637

37    35    Griffin Bacal              31/12/98   4,323    1.17    -179

38    41    Roose & Partners

            Advertising                30/09/98   4,204   25.23     -22

39    43    Cogent Elliott             31/12/98   3,872   22.76     346

40    36    Mellors Reay & Partners    30/09/98   3,664  -10.76     285

41    39    Advertising Principles     31/03/98   3,592   -2.97      26

42    42    Court Burkitt &

            Company                    31/03/99   3,567    3.51     318

43    49    KRT                        31/12/97   3,271    1.27    -953

44    -     Maher Bird Associates      31/12/98   2,737   43.37     597

45    46    The Morgan Partnership     31/01/97   2,734  -14.16      20

46    47    Osprey Park                30/09/98   2,678    0.87     237

47    45    Lansdown Conquest          31/12/97   2,674   -3.71    -107

48    50    BCMB                       31/12/98   2,448   15.42     282

49    -     Mustoe Merriman Herring

            Levy                       30/06/98   2,393   23.86     176

50    44    Arc International

            Advertising                31/12/97   2,012  -28.60      83

Rank  Rank  Agency                      Chge     Opera-  Employ-    Chge

lat-  prev                                 %       ting     ment       %

est                                              profit    costs

                                                 margin   pounds

                                                      %      000

1     1     Young & Rubicam Group    -426.93      -3.18   32,880   16.22

2     2     The Ogilvy Group

            (Holdings)                 70.51       9.42   24,310   13.26

3     3     Saatchi & Saatchi Group    42.56      -9.20   27,932    4.42

4     4     J. Walter Thompson

            Group                   1,103.11      10.95   26,064   -2.84

5     5     BMP DDB                    19.01      12.42   22,677   13.73

6     7     McCann-Erickson

            Advertising                13.39       7.26   19,824    5.76

7     6     D’Arcy                      7.22      11.33   18,627   10.47

8     8     Abbott Mead Vickers BBDO   -5.04      18.73   16,341    9.63

9     9     Bartle Bogle Hegarty      459.40      11.23   16,344  -15.94

10    10    Bates Dorland             -50.81     -11.47   14,675   -2.08

11    12    Leo Burnett              -652.91      -4.78   13,296   10.51

12    11    Lowe Howard-Spink         -74.86       6.44   11,803    4.07

13    16    Grey Advertising         -120.96      -1.55    9,113  -14.94

14    13    Ammirati Puris Lintas     -58.98      -2.67    8,803    2.86

15    14    Publicis                   -0.89      17.87   10,107   13.00

16    19    M&C Saatchi               128.01       7.85    9,842   43.74

17    15    WCRS                       17.45      21.18    8,888    1.62

18    17    Euro RSCG                 -17.40      12.35    6,813    4.61

19    20    McCann-Erickson

            Manchester                  8.38      13.99    7,892   22.24

20    21    HHCL & Partners           -53.41      12.20    5,428    8.86

21    22    The Leagas Delaney

            Partnership                 3.68       4.19    5,144    5.13

22    18    Austin Knight             -46.42      15.32   11,247   18.00

23    25    BDDP GGT                   -9.49      21.08    4,996   72.10

24    23    TBWA GGT Simons Palmer    -48.82      12.45    5,275    1.76

25    24    Collett Dickenson

            Pearce UK                 -13.81       5.80    4,770   14.09

26    26    FCB Advertising           -11.86      10.25    2,992   10.20

27    32    Partners BDDH              78.21      21.97    3,324   53.82

28    29    St Luke’s Holdings        -52.22       8.13    3,837   35.39

29    28    BDH Communications        -62.56       2.38    3,877    6.16

30    33    Delaney Fletcher Bozell    61.08       9.30    2,650   16.79

31    48    Rainey Kelly Campbell

            Roalfe                     54.79      21.19    2,406   44.16

32    31    Clark & Taylor

            Advertising                16.57       3.81    3,898   12.66

33    30    DMB&B Financial            17.35      16.33    2,332    4.39

34    40    Duckworth Finn Grubb

            Waters                     22.50      18.36    2,481   43.74

35    38    Faulds Advertising         21.40      22.99    3,706   10.49

36    34    Banks Hoggins O’Shea       65.89      14.49    2,257   43.58

37    35    Griffin Bacal            -136.38      -4.14    2,476    0.53

38    41    Roose & Partners

            Advertising              -110.78      -0.52    1,801   18.64

39    43    Cogent Elliott             23.13       8.94    1,805   12.53

40    36    Mellors Reay & Partners   -49.20       7.78    2,194   -4.77

41    39    Advertising Principles    -91.69       0.72    2,105   11.79

42    42    Court Burkitt &

            Company                31,700.00       8.92    2,019    6.26

43    49    KRT                         6.20     -29.13    1,514   -3.81

44    -     Maher Bird Associates     253.25      21.81      979    0.41

45    46    The Morgan Partnership    -91.84       0.73    1,762   -1.78

46    47    Osprey Park               269.29       8.85    1,124  -14.72

47    45    Lansdown Conquest        -234.38      -4.00    1,255  -20.72

48    50    BCMB                       54.95      11.52      941    7.05

49    -     Mustoe Merriman Herring

            Levy                      104.65       7.35    1,651   26.61

50    44    Arc International

            Advertising               -66.67       4.13    1,865   -1.89

Source: Willott Kingston Smith has used the latest figures filed at

Companies House, covering periods ending in 1996, 1997 and 1998.

Definitions: gross income: turnover less direct costs of sales, if any;

employment costs: the total of gross salaries, employers’ NIC and

pension costs; operating profit: pre-tax, excluding the amortisation of

goodwill from acquisitions of other businesses, exceptional items,

income from (or losses of) related companies and interest receivable and

other investment income less interest payable.



The top ten line-up shows more than ever that the money is not in pure

advertising. The presence of two pure media groups, Aegis and Tempus,

and of two below-the-line dominated groups, Incepta and Diversified

Agency Services, proves this.



Aegis Group, parent of Carat and BBJ, has pulled in excellent margins

approaching 23 per cent and related high income per head of almost

pounds 78,000.



Tempus, too, has high margins, this time at 14.49 per cent.



But king of the castle is WPP, which has seen operating profits rise by

almost pounds 50 million to pounds 229,100,000. Margins were up by 1.58

per cent, taking the total to just over 14 per cent. The 15 per cent

benchmark, which is the stated target for WPP, is looming tantalisingly

near. Perhaps the incentive scheme, unveiled in a flurry of publicity

last month, from WPP’s chief executive, Martin Sorrell, will secure

it.



However, income per head at WPP has fallen slightly to pounds 63,797.

This figure reflects Sorrell’s undertaking to diversify into

non-advertising sectors, particularly below-the-line - usually more

labour intensive industries.



Abbott Mead Vickers, British advertising’s golden group, has suffered a

fall of more than 3 per cent in margins. The fall may be attributable to

the six acquisitions it made in 1997, including Craik Jones Watson

Mitchell Voelkel.



Saatchi & Saatchi and Cordiant Communications, despite falls in profit

in their advertising agencies, have both stormed into the top ten groups

league table at numbers three and five respectively. But their results

have been distorted by their demerger: Cordiant-owned Bates Dorland was

able to cover its operating losses of pounds 3 million with a pounds

24.5 million gain from the waiver of group loans. And Saatchis’

operating loss of pounds 5 million was concealed by an exceptional

income of pounds 99 million.



TOP TEN GROUPS

Rk  Group                   Operating        Operating     Gross income

                              profit         margin on          per

                           pounds 000     gross income %    head pounds

                         Latest     Prev    Latest  Prev  Latest    Prev

1   WPP Group           229,100  182,900   14.03   12.45  63,797  64,110

2   Aegis Group          50,400   43,600   22.81   22.73  77,872  84,643

3   Saatchi & Saatchi    31,600   30,600    8.31    8.09  73,012  71,956

4   Diversified

    Agency Services      27,864   29,980   12.30   16.96  59,561  55,571

5   Cordiant

    Communications       26,200   24,000    8.68    7.80  62,653  63,541

6   Interpublic          17,991   21,227    6.70    8.33  90,079  93,808

7   Abbott Mead Vickers  13,314   15,599   11.03   14.75  81,755  84,619

8   Tempus Group         10,449    7,726   14.49   13.80  77,114  76,372

9   The GGT Group         9,751    4,161    4.72    5.38  76,196  72,576

10  Incepta Group         8,113    5,761   16.18   17.00  69,432  68,876



Size matters. This chart clearly shows how the two front runners, Aegis

and Tempus, are in a position to expand their already sizeable

businesses.



Both have healthy increments in operating profits with Aegis growing by

15.6 per cent and Tempus by 35.24 per cent.



The story is very different for the smaller players, however. With three

of the agencies showing profit declines of about 80 per cent, a bleak

future for medium-sized independents is suggested.



This is highlighted by TCS Media’s rise up the ranks. The agency’s gross

income rose by pounds 460,000, an impressive but not enormous sum.

However, it was enough to make it the sixth biggest independent, having

been the tenth largest in last year’s figures.



The reason is simple: globalisation. Unless the agency is in a position

to run an account across Europe or even around the world, accounts are

likely to fly to a network.



Tempus’s spread of business reflects this. Its UK operation now accounts

for only 33.6 per cent of the worldwide turnover. This contrasts with

the 1997 position where 45.6 per cent of the turnover was generated by

the UK business. Large increases in the US and Scandinavia were

responsible for the overall increase in turnover.



Aegis and its former chief executive, Crispin Davis, have had a good

year. The 1998 report and accounts show he sold two million shares,

realising a gain of pounds 2,070,000. He was also granted share options

on 11.7 million shares at an exercise price of 85p. Given that the

recent trading price is about 124p, he could have fared even better.

Reed Elsevier must have offered an attractive package when it poached

Davis this year to be its chief executive.



TOP TEN MEDIA INDEPENDENTS

Rk Agency         Year end    Gross    Chg Opera-  Chge  Opera-   Chge

                             income      %   ting     %    ting      %

                             pounds        profit        profit

                                000        pounds        margin

                                              000             %

1  Aegis Group    31/12/98  221,000  15.22 50,400  15.60  22.81   0.32

2  Tempus Group   31/12/98   72,102  28.80 10,449  35.24  14.49   5.01

3  The Media

   Business

   Group          30/04/98    7,761  41.08  1,533  42.08  19.75   0.70

4  Media Buying

   Services

   Group          28/02/99    3,081   8.18    286  31.19   9.28  21.27

5  John Ayling

   &

   Associates     31/12/97    2,589   2.53     15 -79.17   0.58 -79.68

6  TCS Media

   (Planning &

   Buying)        30/09/98    2,447  23.15     74  -7.50   3.02 -24.89

7  MediaVest      28/02/98    2,406  69.20    627 219.90  26.06  89.07

8  Media

   Campaign

   Services       31/01/98    2,047  13.22     34 -82.65   1.66 -84.68

9  AMS

   Communica-

   tions          31/03/99    1,849   0.54    163   7.24   8.82   6.66

10 Total Media    31/12/98    1,839 -10.16     32 -81.71   1.74 -79.65

TOP TEN BY OPERATING PROFIT PER HEAD

Rank  Agency                         Operating profit per    Change

                                          head pounds

                                       Latest    Previous         %

1     Rainey Kelly                     28,581      25,613     11.59

2     Maher Bird Associates            27,136      10,563    156.91

3     Partners BDDH                    24,678      16,673     48.01

4     WCRS                             20,272      16,775     20.84

5     Abbott Mead Vickers BBDO         20,204      21,421     -5.68

6     BDDP GGT                         18,690      35,603    -47.51

7     Duckworth Finn                   17,358      17,068      1.70

8     Publicis                         16,985      19,221    -11.63

9     DMB&B Financial                  14,474      13,519      7.06

10    Banks Hoggins O’Shea             12,740      10,971     16.12

These figures can be misleading because some directors of private

companies take profit share as a bonus rather than a dividend, which

reduces operating profits. Rainey Kelley takes the top slot this year -

a figure which no doubt rendered the agency attractive to Y&R bosses

whosuffer a loss per head of more than pounds 2,000.

BOTTOM TEN BY OPERATING PROFIT PER HEAD

Rank  Agency                         Operating profit per    Change

                                          head pounds

                                       Latest    Previous         %

41    Roose & Partners                   -512       5,231   -109.78

42    Grey Advertising                 -1,526       5,397   -128.28

43    Young & Rubicam Group            -2,314         728   -417.82

44    Griffin Bacal                    -2,594       7,569   -134.27

45    Ammirati Puris Lintas            -2,616      -1,621    -61.33

46    Lansdown Conquest                -3,147        -800   -293.38

47    Leo Burnett                      -3,404         620   -649.31

48    Saatchi & Saatchi Group          -6,187     -11,157     44.55

49    Bates Dorland                    -9,449      -5,841    -61.78

50    KRT                             -17,018     -22,578     24.63

Ammirati Puris Lintas and Grey Advertising have joined the table that is

now dominated by large multinational agencies. The logical explanation

is that the figures show how increased globalisation of accounts is

forcing networks to accept lower levels of remuneration.

TOP TEN BY EMPLOYMENT COST PER HEAD

Rank  Agency                        Employment profit per    Change

                                          head pounds

                                       Latest    Previous         %

1     Partners BDDH                    56,339      44,102     27.75

2     Rainey Kelly                     55,953      53,839      3.93

3     Clark & Taylor                   55,686      53,231      4.61

4     Abbott Mead Vickers BBDO         55,582      51,045      8.89

5     Leagas Delaney                   54,147      53,185      1.81

6     Lowe Howard-Spink                53,407      46,290     15.38

7     J. Walter Thompson               52,337      46,250     13.16

8     Arc 

This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs