• by Joe Mandese  @mp_joemandese, April 2, 2004

In another indication that the pace of new media agency business may be waning, media account turnover continued to ebb through the first quarter of 2004, according to estimates released Thursday by Media Analysis Plus.

Media account turnover totaled $394 million in March, down from the $572 million in media billings that changed hands in February, according to the March edition of the MAP Barometer, which tracks media account changes of $10 million and higher.

Year to date, the volume of media account turnover is $1.4 billion. In January-March of 2003, the total was $1.3 billion and in January-March of 2002 it was $2.8 billion.

"It does seem to be decelerating," said Jim Surmanek, CEO of MAP. Part of the slowdown, he said, was the fact that there are fewer media consolidations taking place, because many of the biggest marketers have already consolidated their business. Another big factor could be the recent trend of marketers sticking with their incumbent agencies even after initiating so-called mandated media reviews.

"We saw that with Amex," said Surmanek, referring to American Express' decision to stick with MindShare after a long and exhaustive review of its media services account. Another recent high-profile media review - America Online's - ended with the incumbent, Initiative Media, retaining the business.

"I think that what's going on is more due diligence, but fewer account turnovers," said Surmanek.

Ten advertisers shifted their media assignments in March compared with seven in February. In 2003, the average number of media assignments with billings of $10 million or more that changed hands on a monthly basis was 11.25.

The biggest single media-buying account shift in March was Red Lobster, whose $100 million account went from Euro RSCG Tatham Partners to The Richards Group.

March 2004 Media Account Turnover

Account             Loser                 Winner
Billings 
Banquet (Conagra)   Fogerty Klein Monroe  DDB               $20 mil 
California Lottery  MediaCom              BBDO West         $25 mil 
Chuck E. Cheese     Initiative
Starlink          $25 mil 
Ferrero USA         Universal McCann      Zenith            $20 mil 
General Nutrition   Various               Cramer-Krasselt   $20 mil 
Levi Strauss        OMD
Initiative        $60 mil 
Nokia               Richards Group        MediaCom          $60 mil 
Red Lobster         Euro RSCG Tatham      Richards Group   $100 mil 
Tyson Foods         DDB
Arnold            $40 mil 
Winn-Dixie          Cramer-Krasselt       VML               $24 mil 

Total March 2004                                           $394 mil 
Total Q1 2004
$1,356 mil 

Source: Media Analysis Plus.