• by Joe Mandese  @mp_joemandese, April 20, 2006

Paris-based Publicis Groupe had the best net new business gains of any of the major ad agency holding companies in 2005, more than doubling its growth to $7.8 billion in incremental billings during the year, according to a compilation released this morning by the equities research team at Merrill Lynch. Publicis, the parent of Starcom MediaVest Group, ZenithOptimedia Group and agencies like Fallon, Saatchi and Leo Burnett, also had strong organic revenue growth, but nonetheless trailed the performance of Omnicom and London-based Aegis Group.

Omnicom's organic revenues soared 7.3 percent, due to especially strong growth in the U.S. (+9.0 percent), while Aegis jumped 7.2 percent. London-based WPP Group ranked fourth, growing 5.5 percent, followed by Paris-based Havas' 2.5 percent gain. Beleaguered Interpublic Group remained negative, experiencing a 0.7 percent decline in organic revenues for the year, which the Merrill Lynch analysts attributed partly to the loss of big accounts such as General Motors' media buying business, and the loss of Bank of America. "Patience at Interpublic is required," the report said, adding, "However, net account wins in [the first quarter of 2006] seem to point to an improving revenue outlook towards reaching management's goal of industry level organic growth of 5 percent to 6 percent by 2008.

2005 Net New Business Gains

Publicis      $7.80 billion  
Omnicom       $5.50 billion  
WPP           $5.24 billion  
Aegis         $1.60 billion  
Havas
$1.06 billion  
Interpublic              NA  

Source: Merrill Lynch from company reports. NA = Not available.