The estimates are significant, because it is the first real portrait of Madison Avenue's supply chain, based on the media buys big agencies actually make. SMI compiles its data directly from the data processing systems used to pay media suppliers by four of the major agency holding companies -- Aegis, Havas, Interpublic and Publicis -- and the findings reveal that Madison Avenue still favors big media suppliers, but that the composition of its supply chain is changing dramatically.
In the past year, spending by the big agencies on Google rose 9% to a 5.2% share of all advertising buys made by the big agencies in 2013. That actually makes Google only the second-fastest growing of the Big 5. CBS grew the most, rising 12% to an 8.6% share of Madison Avenue's media buys.
The only one of the Big 5 to erode is also Madison Avenue's biggest supplier, Comcast Corp. -- which saw its share slide 10% to a 10.5% share of Madison Avenue's market in 2013, due largely to the erosion of its biggest asset, NBC, which declined 18% last year. NBC's decline was due, in part, to comparisons with 2012, when it carried the Olympic Games.
Interestingly, Madison Avenue's new Big 5 represents the full
spectrum of media-buying, including major broadcast and cable companies (Comcast, CBS and Walt Disney Co.), digital (Google) and publishing (Time Warner). Combined, the Big 5 suppliers represent 40.5%
of Madison Avenue’s media-buying power.
“Big 5” Media Supplier -- 2013 Share Of Madison Avenue Spending
“Big 5” Total
Source: Standard Media Index. Base = Actual media buys processed by Aegis, Havas, Interpubllic, Publicis.