Last night I attended the presentation of the annual financial survey by Kingston Smith W1. The report is called 'Financial Performance of marketing services companies'. This is for figures published for 2008 and from what they are predicting, the 2009 report (published this time next year) will make very different reading.
The whole report is 161 pages in total. They survey the top 50 independent UK marketing groups and also UK Quoted Groups and then analysis their financial standing by discipline (Digital, Advertising, Media Buying etc).
It is really interesting reading (it is too heavy to carry and read on the train !) and covers areas such as turnover, employment costs, operating profit, the key ratios that we like to look at such as employment costs: gross income, and the favourite bit - the Director's salaries (the highest one being paid £1.5m).
The sector by sector review is also really interesting. Media Buying and PR come out as doing well (in terms of profit margins) with direct marketing and digitial (surprisingly) have low returns of their margins.
Well worth the investment and a good source of data in terms of finanical status of some key agencies. I am not sure if you can buy it directly now, but here is a link to it on the KS website. Click here.
P.S. Just seen that Campaign have a four page spread on the report (page 24 - 22 January issue)
Showing posts with label Media. Show all posts
Showing posts with label Media. Show all posts
22 January 2010
02 December 2009
First blog article revisited
There is an article on the Procurement Leaders website blog about that Ad Age article that I mentioned in my first blog and the influence of procurement, States side. Click here for the article.
What is interesting is that Jonah Bloom, the Editor of Advertising Age hits back and explains the rationale behind his view on the impact of procurement on agencies revenue.
The best quote in the article is 'The squeeze in fees that the advertising industry is experiencing is as a result of better communication between marketing and procurement, not worse'. I think that this is true as the relationship between marketing and procurement is constantly improving.
The sector that I see that 'gets' procurement is Media. I am often asked to do training for the media agencies and support on key tenders. As buyers themselves, I think that they get it and understand and appreciate their role in a tender/pitch situation. The sector that really doesn't get procurement is Design. They really struggle to see how Procurement can put a value on creativity. My advice to any design agency that approaches me - is to help then, help educate the value of your output and work with procurement to get a solution in place that all three parties (including the Brand / Design person) are happy with.
What is interesting is that Jonah Bloom, the Editor of Advertising Age hits back and explains the rationale behind his view on the impact of procurement on agencies revenue.
The best quote in the article is 'The squeeze in fees that the advertising industry is experiencing is as a result of better communication between marketing and procurement, not worse'. I think that this is true as the relationship between marketing and procurement is constantly improving.
The sector that I see that 'gets' procurement is Media. I am often asked to do training for the media agencies and support on key tenders. As buyers themselves, I think that they get it and understand and appreciate their role in a tender/pitch situation. The sector that really doesn't get procurement is Design. They really struggle to see how Procurement can put a value on creativity. My advice to any design agency that approaches me - is to help then, help educate the value of your output and work with procurement to get a solution in place that all three parties (including the Brand / Design person) are happy with.
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