It is too early to know what marketing agencies’ balance sheets will look like on 31 December, but there have been some signs that borrowing levels have stabilised. A survey published in October suggested that balance sheets of most publicly listed marketing groups appeared to have remained fairly stable during 2011 despite the gloomy economic environment, and that trend seems to have continued.
Posts Tagged: Fintellect
Publicis Groupe’s ability to continue building revenues at a seemingly faster rate than its global competitors – reflected in its third quarter results announced today – may well have been helped by favourable currency movements – not least the decline in the euro – and aggressive investment in digital acquisitions, but the fact remains that the growth is real enough.
Few would challenge the Publicis policy of investing in digital assets in the manner pursued so energetically by chief executive Maurice Lévy. It has proved to be a good strategy so far. And, as a target, LBi has made great progress from its darker days to become a well respected business.
With AKQA’s shareholders extracting a juicy $540 million from WPP, it’s hardly surprising that other would-be acquirers are swarming round the only other obvious large candidate likely to be for sale – LBi International – like bees round a honeypot.
The Omnicom network that trades as DDB may still ring a few bells with adland veterans who remember Doyle Dane Bernbach. But the three letters are hardly likely to create any meaningful positive reactions from today’s marketing executives. It’s something that Adam & Eve needs to think about as the agency celebrates joining the DDB network.
The future of stand alone digital marketing agencies looks increasingly limited as we learn today that Saatchi & Saatchi France is to absorb the Duke digital agency.
A few months ago Engine Group’s digital agency Altogether Digital merged with WCRS and, in a sort of role reversal, Dare merged with sister creative agency MCBD. Of course the leader in this trend was AKQA, a digital agency that in 2001 seemed to have adopted a rather novel and unexpected strategy by merging with US creative agency Citron Haligman Bedecarré to become a seamless whole.
We little Englanders may not like to admit it, but the evidence suggests that Publicis Groupe is growing faster than any of the other “Big Five” global groups. It would have been less irritating if the company’s 12.9% growth in revenue claimed for the first quarter of 2012 had been a one-off, but that is not so.
The recent rush to acquire sport related agencies by companies like Chime and Havas ahead of the Olympic Games and 2014 World Cup may offer acquirers some attractive short term gains, but what about the longer term?
It’s not very often in these gloomy times that there’s something to celebrate, but the good results announced by The Mission Marketing Group this week justify at least a modest cheer.
With a track record of losses like those shown in the chart below, one might expect the management of Canada’s MDC Partners to simply throw in the towel and admit defeat. At the very least one would be expecting more uproar from shareholders and some pretty tough talking with banks.