Aegis Diversifies Beyond Media, Outpaces Ad Industry Growth

Aegis Group, once the purest media services play among the major ad agency holding companies, is now deriving some of its greatest growth form areas other than media buying and planning, according to year-end 2004 financial data released by the company this morning. The company reported organic revenue growth of 8.4 percent over 2004, a figure it claimed outpaced the industry overall.

"Today's results show that our media and research businesses grew faster than their respective markets," stated Robert Lerwill, the recently installed CEO of U.K.-based Aegis Group plc. By division, he said Aegis Media's organic revenue growth rate of 8.5% "is significantly ahead of Carat's estimate that global ad spend grew by 6 percent in 2004, and is almost double the rate of growth in Aegis Media's marketplace."

The other big area of growth for the company has been marketing and media research. Its Synovate's research operations had organic revenue growth 8.3% compared with an estimated expansion in global market research spending of about 4.25%.

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"Both businesses are clearly gaining market share against their competition," boasted Lerwill.

Among its media services operations, Carat Americas turned in the worst results, due to the impact of a "weak U.S. dollar," though gross media billings for Aegis Media grew by $1.842 million, which compares with $728 million in net new billings in 2003.

"The U.S. advertising market showed sustained strength partly due to the impact of spend relating to the presidential election and also as a result of increased spending from the major advertisers," said the financial release. "Carat's growing reputation in the U.S. market has resulted in a good new business performance. Carat Americas achieved a number of major account wins including P&G, Spectrum Brands, Western Union and the Province of Quebec."

Other highlights include Aegis recently formed Isobar digital media group, which is now operating in 23 countries.

"With large marketers fueling demand for interactive services the market is seeing growth in excess of 20 percent per annum and it is anticipated that Isobar will grow to become a significant part of the group's media revenues over the next three years," the company said.

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