• by April 19, 2004

AEGIS, WPP TAKE A BITE OUT OF MEDIA MARKET SHARES -- The U.S. accounted for 44 percent of worldwide media billings among the top 12 media networks in 2003, according to estimates released today by The RECMA Report. That may be good news or bad news depending on which side of the Atlantic your media holdings are concentrated on. And based on the new estimates, you would have been better off if they were concentrated overseas. U.K.-based Aegis and WPP groups led the pack with double digit worldwide billings growth from their media agencies, based largely on expansion in overseas markets.

Interpublic, the most U.S.-centric of the top five agency holding companies, conversely, had the lowest rate of growth with total media billings expanding only 0.6 percent. Even that was due largely to a 7.1 percent rise in Asia, which offset a 2.9 percent decrease in the U.S. and a lackluster 1.7 percent expansion in Europe. Interpublic is the parent of Initiative Media and Universal McCann, neither of which had a great year in 2003, and with the exception of Initiative's AOL win, haven't had an auspicious start to 2004, either.

In contrast, Aegis' Carat and new Vizeum networks have demonstrated impressive growth with total media billings rising 15.5 percent in 2003, including a whopping 54.0 percent rise in Asia, and a 17.8 percent gain in Europe, despite a relatively anemic 4.1 percent expansion in the U.S.

Sir Martin's WPP, parent of Group M, which oversees both MindShare and Mediaedge:cia, saw overall billings from its media networks rise 10.1 percent in 2003, also thanks to a surge in Asia (+23.8 percent), though both the U.S. (+8.2 percent) and Europe (+7.9 percent) grew at healthy rates.

U.S.-based Omnicom also benefited from an Asian surge (+15.9 percent), which was enough to drive worldwide billings growth up 7.3 percent for its OMD and PHD media networks. The U.S. grew at a relatively modest 5.1 percent, while European billings expanded 7.1 percent.

Publicis was the exception to the rule, demonstrating strong U.S. growth (+7.9 percent) and relatively weak overseas growth, an odd development for a French-based company. Worldwide billings for Publicis, which owns both Starcom MediaVest Group and Zenith Optimedia Group, grew only 4.6 percent.

RECMA, which compiles and estimates media agency billings data, is quickly emerging as an industry standard source, especially now that the U.S. Sarbanes Oxley Act has discouraged some major publicly traded agencies from voluntarily providing their own media billings estimates to industry sources.

2003 Media Agency Billings/Growth (Ranked By Top 5 Companies)

         -----U.S.------
---Worldwide--- 
         Billings/Change    Billings/Change 
Publicis $18.635   +7.9%    $34.395   +4.6% 
WPP      $14.655   +8.2%    $33.785  +10.1% 
IPG      $12.475   -2.9%    $27.685
+0.6% 
Omnicom  $12.450   +5.1%    $24.255   +7.3% 
Aegis     $4.720   +4.1%    $19.635  +15.5% 

RECMA Worldwide Media Agency Networks billings report. Ranked by top 5 holding company media networks. Publicis = Starcom MediaVest Group, Zenith Optimedia Group. WPP = Group M (MindShare, Mediaedge:cia). Interpublic = Initiative Media, Universal McCann.