It doesn’t seem so long ago that agency proclamations about global
media networks were delivered with fingers firmly crossed, shared
letterheads were the closest many came to consistent branding and
geographical coverage had more holes than a pair of fish-nets.
It doesn’t seem so long ago because it isn’t. Rewind two years to the
last major feature Campaign compiled on the global media operations and
not only was it virtually impossible to pinpoint the facts about each
network, but the so-called facts themselves were often a little, erm,
open to interpretation.
But two years is clearly a long time on the international media
stage.
Now it seems that the need for a credible international media brand has
been embraced at the very top of many communications groups.
The intervening months have seen the emergence of several new brands,
the death of many in-house media operations and a global emphasis on
media, from agencies and clients alike. The media networks are
positioning themselves ever closer to the centre of the communications
decision-making process and edging further into the clients’
boardrooms.
Such advances are being driven, in part, by the media superbrands which
have emerged in the past two years. MindShare, for example, launched in
1998 with a positioning which promised a communications solution tapping
into the resources of its WPP parent. Although the agency has a long way
to go before it truly begins to deliver on this promise (not least
because it is still far from being a truly global operation - there is
still no MindShare in the US), it has established an enviable position
which other networks are now working to. Western Initiative Media and
the Media Edge have also emerged to make serious in-roads in taking
media upstream and into the heartland of a broad spectrum of
communications.
The biggest of the new arrivals is Optimum Media Direction, which
combines the forces of the TBWA, BBDO and DDB networks. Its sheer size
gives OMD a ready-made positioning, but it has some way to go before it
enjoys the cohesive veneer crafted by some of its rivals.
The fledgling merger between Starcom and MediaVest is also a contender
for the title of the biggest media network and aims to have a more
unified brand than OMD, though there will not be a full merger in some
markets such as the US.
Alongside such newcomers, the old European media powerhouses have had to
work hard to keep pace. Carat has focused on strategic communications
and market research to spearhead its assault on the US, where, despite
still lacking the volume of many of its rivals, it has helped set the
agenda for a more sophisticated approach to media. Zenith Media, which
has been in the US since 1995, has one of the most consistent
international media operations. Yet it seems that the new brands are
making all the noise about a broad strategic communications service, and
Zenith needs to emphasise an international offering beyond media
planning and buying to stay ahead.
Meanwhile, CIA Medianetwork, which has struggled in several European
markets over the past two years, has yet to make a real impression in
the US and looks unlikely to claim true international status without an
affiliation with another communications network. One European media
force looking forward to a brighter future, however, is Media Planning,
which now embraces the old Mediapolis. Although the merged agency is
still in its inception phase it has high ambitions and a dedication to
the media business.
But the global media axis has undoubtedly shifted across the Atlantic
over the past two years, fuelled by the growing independence of media in
the American marketplace. So Universal McCann can finally look forward
to consistent international branding with the news that all in-house
media departments will now adopt the Universal name and, having reaped
the rewards of media independence US-style, Leo Burnett is now beginning
to export its Starcom media brand into other territories.
Nevertheless, the US paymasters of networks such as MediaCom and
Optimedia have been slow to fully grasp the media nettle. MediaCom and
Optimedia continue to be strong operations in Europe (particularly in
Germany and the UK) but display little of the strategic global vision
that has marked out newer networks. True North, on the other hand, has
not even begun to make in-roads into the creation of an international
media brand following the merger of FCB with Bozell Worldwide.
Any agency that has spent the last two years standing still has
inevitably taken a step backwards in the race to dominate the global
media stage.
But no media agency can yet claim a truly global operation with real
homogeneity, the export of best practice and consistent standards across
borders. There’s much work still to be done and it will take more than
the next two years to get there.
RANK BY STRATEGIC CLOUT
Big may be beautiful but it’s not necessarily best. At least not yet.
Ranking the international media networks purely on size would catapult
OMD to the top of any chart, but the company still faces issues over
unity and control - it has yet to secure the true independence from its
sister creative agencies that will really fire the OMD proposition.
In terms of autonomy, strategic positioning and established network
credentials, Western Initiative Media has the edge , though the branding
of its two constituent parts - Initiative Media and Western
International Media - is changing.
In the long term, MindShare has the potential to be a world leader in
broad strategic communications and already has the branding, positioning
and group resource which set it apart from many rivals. But the company
is still in its development phase and has yet to make its US debut.
The new alliance between Starcom, MediaVest and Dentsu is sure to create
a major global media force. The might must be harnessed, though by unity
and single-mindedness; there’s no room for politics if the new network
is to realise its full potential.
The years of network development and international management experience
of Carat and Zenith give both companies a real head start on their
rivals currently battling against agency politics and international
standardisation.
For the future Carat needs a stronger presence in the US while Zenith
still has issues of size and positioning outside the UK.
The Media Edge has a neat positioning as the media umbrella which spans
all Young & Rubicam group companies, but the agency has a series of
alliances covering media buying in Europe which dilute its unified
proposition.
For MediaCom and Optimedia a real presence in the US remains a pressing
concern. CIA Medianetwork has had a torrid time in its key UK and
Italian markets and needs an alliance to give it a global foundation and
shore up volume.
1 Western Initiative Media
2 Carat
3 MindShare
4 The Media Edge
5 Zenith Media
6 Optimum Media Direction
7 Starcom/MediaVest
8 MediaCom
9 Optimedia
10 CIA Medianetwork
THE GLOBAL MEDIA BARONS OF 1999 RANKED AS LEADERS
(1) Chris Ingram - CIA Medianetwork
Although CIA Medianetwork is still predominantly European and has
experienced problems in some key markets, no other media man can claim
to have built a viable network from scratch. Ingram might seem a
surprising choice for the top slot, but he is the architect of a network
- whatever its current problems - rather than a rebrander and reshaper
of in-house media departments.
(2) Larry Lamatina - Western Initiative Media
The architect of one of the first US media titans and inheritor of the
formidable Initiative network, Lamatina runs one of the world’s most
impressive media brands.
(3) John Perriss - Zenith Media
Zenith is the original media network and where Perriss has led, others
have followed. He has driven the Zenith brand around the world, creating
one of the most coherent international networks.
(4) Jack Klues - Starcom
Klues launched Starcom when media independence was far from fashionable
in the US and drove the idea to the point of global roll out.
(5) Paul Woolmington - The Media Edge
Woolmington has re-invented the lacklustre Young & Rubicam media
operation as a holistic global brand name which claims a powerful
strategic positioning.
(6) Daryl Simm - Optimum Media Direction
OMD’s network is far from finished, but Simm has provided a single focal
point for the Omnicom media brands with the potential to be a world
leader.
(7) Dominic Proctor - MindShare
Proctor has established the MindShare name in key markets outside the
US. While he now reports to its chief executive, Irwin Gotlieb, Proctor
deserves the credit for the network’s launch.
(8) Alec Gerster - MediaCom
Gerster has steered a slow but steady course for MediaCom, finally
tackling the US market last year and driving acquisitions to strengthen
the brand in key markets such as the UK.
(9) Leopoldo Rodes Castagne Media Planning
In tying up with Mediapolis, Rodes Castagne has brought Media
Planning to the world stage, creating a new media force but one which
still has much work to do.
(10) Simon Lloyd - Optimedia
Lloyd has created a respectable and solid European media network but has
been slow to roll out the brand around the rest of the world.
MEDIA BRANDS RANKED BY BILLINGS
Rank Brand Parent company Billings dollars bn
Total US Europe Rest
1 MindShare WPP 16.5 5.2 4.8 6.5
2 Universal McCann McCann-Erickson 13.2 4.5 5.6 1.7
3 Optimum Media
Direction Omnicom 11.9 3.7 6.0 2.2
4 Western
Initiative Media Interpublic Group 11.3 4.6 4.9 1.8
5= MediaCom Grey Advertising 10.1 2.1 7.3 0.7
5= The Media Edge Young & Rubicam 10.1 3.9 3.6 2.6
7 Carat Aegis 8.6 0.8 7.6 0.2
8 Starcom BDM 8.5 3.7 2.0 2.8
9 MediaVest BDM 8.0 3.8 2.5 1.7
10 TN Media True North 7.7 4.3 1.4 2.0
11 Zenith Media Cordiant, Saatchi
& Saatchi 6.1 2.2 2.7 1.2
12 Optimedia Publicis 5.6 1.2 3.6 0.8
13 CIA Medianetwork Tempus 4.8 0.5 4.0 0.3
14 Media Planning Media Planning/
Havas 4.7 1.3 3.1 0.3
Rank Brand Parent company No of Total Branded offices
staff offices US Europe Rest
1 MindShare WPP 2300 80 0 27 15
2 Universal McCann McCann-Erickson 2430 186 9 26 15
3 Optimum Media
Direction Omnicom 3000 56 5 31 20
4 Western
Initiative Media Interpublic Group 2980 64 25 26 13
5= MediaCom Grey Advertising 1666 88 4 34 24
5= The Media Edge Young & Rubicam 1782 91 14 29 48
7 Carat Aegis 2967 76 11 57 8
8 Starcom BDM 1448 75 7 35 33
9 MediaVest BDM 1230 75 5 16 15
10 TN Media True North 1243 84 6 0 3
11 Zenith Media Cordiant, Saatchi
& Saatchi 1402 54 9 30 15
12 Optimedia Publicis 744 90 0 20 13
13 CIA Medianetwork Tempus 1500 84 2 27 5
14 Media Planning Media Planning/
Havas 1228 15 3 9 3
Rank Brand Parent company Total Major clients
clients
in 5-plus
markets
1 MindShare WPP 25 Ford, Kimberly-Clark,
IBM, Nestle, Unilever,
Kellogg
2 Universal McCann McCann-Erickson 71 Reckitt & Colman, Glaxo
Wellcome, General Motors
3 Optimum Media
Direction Omnicom 47 Compaq, Sara Lee, Mars,
Pepsi, Hasbro
4 Western
Initiative Media Interpublic Group 26 Unilever, Calvin Klein,
Nestle, Sega, Mobil
5= MediaCom Grey Advertising 21 BAT, Procter & Gamble,
Mars, Microsoft
5= The Media Edge Young & Rubicam 44 Colgate Palmolive,
Ericsson, Philip Morris,
AT&T
7 Carat Aegis 8 Philips, Coca-Cola, EMI,
Disney, Chanel
8 Starcom BDM 16 Kellogg, McDonald’s,
Fiat, Procter & Gamble
9 MediaVest BDM 14 Fiat, Masterfoods,
Procter & Gamble, Mars
10 TN Media True North 16 Chrysler, Nabisco,
Bristol Myers Squibb,
3Com
11 Zenith Media Cordiant, Saatchi
& Saatchi 21 BAT, Mars, Procter &
Gamble, Hewlett Packard
12 Optimedia Publicis 11 British Airways,
Renault, SC Johnson,
L’Oreal, Nestle
13 CIA Medianetwork Tempus 26 Daewoo, Beiersdorf,
Henkel, Novarts,
Wrangler
14 Media Planning Media Planning/
Havas 19 Air France, Intel,
Colgate Palmolive,
Kraft, Philips
