This is the 26th time we have conducted this annual exercise to assess the business performance of the country's top ad agencies. After many weeks of gathering data, watching reels, looking at Web sites and debating the merits of agency strategy, we are confident this collection presents an insightful picture of the fortunes of the 25 companies covered.

The agencies are chosen on the basis of two factors: size and influence. On the list are the 13-largest agencies in the U.S., and 12 from among the 50 largest that we deemed to be influential to the industry, primarily because the quality and nature of their work sets a standard others follow.

We begin with the most basic indicator of performance: revenue growth. The average growth rate for the agencies in 2008 was 8 percent. Only one agency saw revenue fall and two star performers saw revenue grow by more than 20 percent. The average growth rate in 2007 was 12 percent.

Although revenue growth is the most important factor in assigning grades for financial performance, we also look at each company's revenue gain in the context of the agency's size. Since the biggest outfit is 19 times larger than the smallest, it wouldn't be fair to use only the growth rate (where the small companies would have an edge) or only absolute dollar growth (which favors the big guys), so we make an adjustment for growth relative to size.

We also look at profitability. To do this we calculate revenue per employee, on the assumption that the higher this ratio, the more profitable the agency. We also include a factor that recognizes changes in profitability year over year. Scores for these individual characteristics are combined in a weighted average formula, and letter grades are assigned after an editorial review of all the numbers.

Assessing creative performance is, naturally, a subjective exercise. In examining each agency's reel, online work and print output, we look for originality, accurate messaging and quality of production. Campaigns that clearly exerted an influence over what followed are also awarded extra credit.

The grade for management reflects financial and creative achievements as well as how well executives handled management and client issues and other agency developments.

We hope that these cards provide a useful basis for gauging the progress of the industry in 2008. Certainly there is a wealth of basic -- and not so basic -- information and data for anyone making strategic decisions about agency business in 2009 and beyond. Let us know if you agree -- and if you don't.

--Mike Chapman

'08 FINAL GRADES:

ARNOLD: C+
BBDO: B
BBH: C+
LEO BURNETT: C
C-K: B-

CRISPIN: B+
DDB: C+
DEUTSCH: B
DRAFTFCB: C-
EURO RSCG: B-

GOODBY: B+
GREY: B-
HILL, HOLLIDAY: B
JWT: B
LOWE: B-

MARTIN AGENCY: B+
MCCANN: B
MERKLEY: B-
MULLEN: C+
OGILVY: C-

PUBLICIS USA: B+
SAATCHI & SAATCHI: C+
TBWA\CHIAT\DAY: B
WIEDEN: B+
Y&R: C

HOW THE REPORT CARDS WORK




ARNOLD

Numbers C-
Billings, revenue up 2% to $2.93 billion and $260 million, respectively. Won Carnival Cruise Lines ($70 million), Breathsavers and Ice Breakers ($20 million) from roster mainstay Hershey's, Babies R Us ($10 million), small assignments from Colonial Williamsburg, Walmart, Tropicana, Lotte, ZoomBak, Avon, Nine West and the N.E. Conservatory of Music ($10 million combined). American Legacy and Hershey's Reese's brand boosted spending by 40% to $53 million and $42 million, respectively. Ocean Spray up 10% to $50 million. Lost Royal Caribbean ($60 million), Fidelity (print, $20 million), ESPN ($20 million), Timberland ($5 million), First Marblehead ($5 million). Volvo (which Arnold shares with Nitro) cut spending in half to $60 million and Progressive Insurance down 9% to $345 million. Sixth best revenue/staff ratio lifts grade.

Creative B
Produced eye-popping spots for Carnival and Progressive by taking chances and eschewing industry clichés. Fanciful giant beach ball and piñata ads display visual élan and convey the fun atmosphere of a Carnival cruise without resorting to predictable shipboard sun and sand imagery. The black-leather-clad biker series for Progressive catches one off-guard and proves effective at communicating message (if these riders had used Progressive, their hogs would be out of the shop and they wouldn't be at home). ESPN360 effort with Billy Mays sendup of his infomercial persona is pleasantly goofy. Web-based push for ESPN's fantasy baseball casting all-stars as soap studs is more entertaining than the TV genre it lampoons or the game it promotes. American Legacy's animated musicals quickly grow tiresome and should be snuffed out. Print is strong, with simplicity a virtue in ads for Progressive (the biker returns for an encore), Jack Daniels (monochrome election-themed posters with headlines like "The Other Kind of Socialist") and Reese's (big tasty product shots and to-the-point copy). Amtrak's art-deco effect, though attractive, does little to tout the virtues of modern rail travel.

Management C
National CEO Fran Kelly, Boston HQ CEO Pam Hamlin and CCO Pete Favat saw growth nearly slow to a halt. Doesn't bode well as the rest of Havas grew at about 6% -- fueled by Euro RSCG's growth surge in key offices like New York and Chicago. There was surprisingly little activity. Agency surfaced in only one major pitch, Carnival.

Regional Highlights
McLean, Va., added digital chores on Choice and consolidated duties on Colonial Williamsburg. Introduced "National Train Day" for Amtrak. Lynn Power named N.Y. president, filling an open slot.

Comments
Havas seems to have lost faith in this Boston-based shop. As '09 began, the holding company realigned operations, and Arnold now reports into Euro RSCG CEO David Jones in his role as head of the new umbrella group, Havas Worldwide. In an unusual move, the Arnold name was stricken from Havas' year-end financial summary and its accomplishments listed under "Other Agencies." RadioShack heading out the door (Arnold was cut before the final round in February) doesn't help. But in the current economic climate and with zero momentum, it's difficult to imagine '09 being other than a struggle. Management needs to leverage agency's still potent name recognition and integrated service offerings to get into more major contests.

FINAL GRADE: C+




BBDO

Numbers C+
Billings and revenue up 5% to $5.85 billion and $811 million, respectively. Won Harrah's ($75 million), Hyatt ($40 million), Countrywide Financial Services ($30 million), Starbucks ($40 million), VTech ($20 million), REI Outfitters ($20 million),  Embassy Suites ($20 million), Erickson Retirement Communities ($15 million), Georgia-Pacific Gypsum ($2-5 million). Lost Best Buy ($230 million), Mitsubishi ($185 million), Pepsi, Diet Pepsi ($90 million), Pepsi Max ($50 million), Levitra ($55 million), Lubriderm ($20 million). Late-year Pepsi and Best Buy losses will impact revenue in '09. Third-best revenue/staff ratio lifts grade.

Creative A-
FedEx, GE and Monster.com continue as TV showcases. "Carrier Pigeons" spot uses cartoon-like scenario in which birds unsuccessfully deliver packages for an office without the delivery service. Filmic, memorable Monster.com  "Stork" spot follows delivery of a baby and the bird's follow-up as an adult to see if he's reaching his potential. Also imaginative is GE spot with men in clouds recycling water set to striking music. Venus razors spot starring nun who shortens her habit to show off her smooth lower legs is a storytelling category rarity. AT&T spot with Martin Scorsese directing a family phone call funny but familiar. Simple Starbucks type-driven spot touts free coffee for voters. High-octane, reality series-style Dodge Ram Challenge contest engages with Tony Scott-produced action-filled spots and Web films.

Management B-
Worldwide CEO Andrew Robertson and North American chairman/CCO David Lubars, partners since Robertson recruited Lubars from Fallon in 2004, took a major hit with loss of legacy Pepsi account. Creatively, BBDO Worldwide was the most-awarded network and New York was The Gunn Report's most-awarded agency in 2008, largely on the strength of the 2007 "Voyeur" campaign for HBO.

Regional Highlights
Detroit, with Chrysler as its largest client, reeling from cutbacks in client spending, layoffs. BBDO West lost Mitsubishi; won assignments from Harrah's, NBC Universal, Warner Home Video (Blu-ray), Fox Regional Sports and Gallo. Atlanta won Embassy, REI, G-P Gypsum and Erickson Retirement. In Chicago, EnergyBBDO won VTech, named Dan Fietsam, ecd at Publicis West, CCO.

Global Highlights
Global revenue grew 7% to $2.45 billion. Most biting overseas loss was unsuccessful global pitch for Visa, which moved the last of its business in Asia to Omnicom sibling TBWA after '05 loss of U.S. account. Won global pitches for Hewlett-Packard digital imaging/printing, TAG Heuer and Hyatt. Personnel changes included: Proximity Asia managing director Simon Bond relocated to U.S. as Proximity's first head of global business; Mike Dodds as CEO of Proximity London from OgilvyOne; Nick Worthington as ecd of Colenso BBDO from Publicis Mojo; Canada CCO Jack Neary named worldwide cd on P&G.
 
Comments
Year began with positive new business activity, with Jeep returning after two years, and wins including more business from Harrah's and Mars Nutro in San Francisco and Illinois Lottery in Chicago. Award-winning ecd Eric Silver (BBC, Monster.com, FedEx) left in February to advance to CCO at sibling DDB New York. Robertson has his work cut out for him settling existing clients and filling holes left from '08 client departures. Beating Wieden + Kennedy for global Delta business would be a nice boost for morale.

FINAL GRADE: B




BARTLE BOGLE HEGARTY

Numbers D
Billings, revenue flat at $515 million and $43 million, respectively. Won GMAC Financial Services ($60 million), projects for Airborne ($5 million), Virgin Mobile, Commission on Presidential Debates. Lost Levi's ($50 million), SoBe ($25 million). Revenue from late '07 LG Electronics win prevented revenue decline.

Creative A-
Axe spot appeals to target's instincts without seeming oafish by turning tables on 20-something male who mentally undresses women and happily gets the same treatment in return after a blast of Axe. Miller Lite makes great use of Thin Lizzy's "Jailbreak" with a Dalmatian so inspired by last year's Super Bowl spot he makes a run for a Miller Lite beer truck with a pack of friends. Animated LG washer spot showing a train ironing out wrinkles is a visual treat that gives an everyday appliance a distinctive and elegant image. Vaseline Clinical Therapy moisturizer campaign builds valuable consumer trust by asking residents of Kodiak, Alaska, to "prescribe" the product to friends. Axe print joins election fever with topical illustration of the "Axe effect" with surprising image of Hillary Clinton wearing McCain button. Levi's "first time" spot full of innuendo to turn on target and ends with unexpected twist when teens jump off a pier. Levi's print, turning a belt loop into a wedding band to show support for gay marriage, seems a shortcut to ingratiating itself with the target instead of saying something more about the brand. First Oasis album in 10 years gets inventive promotion with client NYC & Company. Music video directors the Malloy Brothers capture street musicians perfoming band's songs throughout N.Y. for a documentary. Sweeping digital effort spreads experience online.

Management C
Led by Emma Cookson in her first full year as CEO, shop pitched and won the global GMAC account, but overall a quiet new business year for N.Y. Unsuccessfully chased global Hyatt and BA OpenSkies assignments. Longtime Levi's client put U.S. business in review after farming out assignments. BBH management spared the agency and declined to defend and focused on projects that can demonstrate its nontraditional/digital chops. Richard Schatzberger joined as director of creative technology from Motorola. R/GA's Robert Rasmussen joined as ecd, innovation. Ramped up investment in brand innovation unit Zag with three full-time staffers and two projects in development, one for Axe. Zag account planner Mary Tomer created a Michelle Obama style blog Mrs-O.org, a brand that has brought the agency a six-figure book deal with Hachette Book Group.

Global Highlights
Global revenue flat at $174 million. Founders Nigel Bogle and John Hegarty strengthened global team, naming Simon Sherwood group CEO and former N.Y. CEO Gwyn Jones group COO. After 18-year vet John O'Keeffe joined WPP in July, London solidified creative succession with Nick Gill as ecd and Rosie Arnold as deputy ecd. Managing director Ben Fennell was promoted to CEO and deputy managing director Charlie Rudd promoted to managing director. U.K. joined Heineken global roster late in the year. Opened office in Mumbai. Shut its Tokyo office as Unilever centralized its Asian operations in Singapore. China added assignments for Nestlé and Fila, among others.

Comments
Publicis-backed shop lost showcase Levi's account and, in early April '09, Miller Lite ($140 million), but nontraditional efforts for Oasis, Commission on Presidential Debates and success of Mrs-O.org point to its future. So does Q1 promotion of Greg Andersen from director of engagement planning to managing director, N.Y.

FINAL GRADE: C+




LEO BURNETT

Numbers C-
Billings and revenue up 7% to $3.7 billion and $96 million, respectively. Won White Wave Foods' Silk brand ($30 million), DeVry University business school ($55 million), ACDelco ($20 million), Government of Ontario ($10 million), Exclusive Resorts ($5 million), Mazola ($5 million). Increased General Motors spending  support of GMC Denali during NBA basketball playoffs. Strong organic gains for Purina, Coca-Cola. Lost PetSmart ($65 million). Poor revenue/staff ratio prevents higher grade.

Creative B-
Work is competent and well-executed. Funny, unintelligible Ozzy Osborne spot works well for Samsung. Cinematic spot using kung fu Chinese youths for McDonald's Olympics work and Hallmark commercial with humorous, bumbling brother of the bride play to agency's TV-centric strengths. Coca-Cola contrast of old and new football teams and fans takes too long to make point about soft drink's community support over the past 79 years. GMC's basketball fan's loud rant does little to sell Denali model. Inspired use of illustration for Kellogg's Pop-Tarts "Splitzville" TV. Solid print, with standouts like Gardenburger sponsorship of Northwest Film and Video Festival. Sophomoric "Bergwood" football integrated pitch ambitious in scope but undermines Allstate's "good hands" stature. Hallmark Project Red Card for Africa Facebook app delivers new millennial customers.

Management C-
Worldwide chief Tom Bernardin and U.S. president Rich Stoddart turned around last year's decline but failed to make Publicis Groupe agency a factor in new business and missed out in Visa roster review ($525 million). Management vacillated with operational models: Insight Factory partnership with corporate siblings Starcom MediaVest and Digitas, announced with fanfare in '07, absorbed by new Publicis oversight arm VivaKi. Launched two new initiatives: the Digital Exchange and the Retail Marketing Exchange, which reach within Burnett network and outside for talent. Introduced seemingly obvious HumanKind strategy, which makes consumers the focus of creative. Below-the-line unit Arc, merged with Burnett in '07, bolstered ranks with addition of Greg Holderfield, from HLB Chicago, as vp, retail design and strategy; Bass Phillips and Jim Paul named digital cds, coming from Publicis Modem and Element 79, respectively.

Regional Highlights
Primarily a one-office company, Burnett has service offices in N.Y., L.A. and Detroit. Launched luxury unit, Atelier NY, run by Aude Gandon; has uncertain prospects in current environment. Reputation management unit, Citizen, expanded to Chicago.

Global Highlights
Gunn Report named agency the second-most awarded network in the world. Strengthened operations in China with addition of W&K Communications in Beijing -- bringing in roster of local marketers -- and acquired Emporio Asia, a Shanghai digital shop.

Comments
Agency seems solid with its big-legacy marketers but must lose its old-fashioned image to thrive in digital era. With most of its growth last year from clients like embattled GM, focus must turn to new business conversions. 2009 started badly with settlement over fraudulent billings for former Army client and awkward removal of CCO John Condon.

FINAL GRADE: C




CRAMER-KRASSELT

Numbers C
Billings, revenue up 6% to $965 million and $145 million, respectively. Won Burlington Coat Factory ($55 million), Johnsonville Sausage ($15 million), TrueCredit ($10 million), and Churchill Downs, Mohawk Flooring and Rayovac ($5 million each). Porsche and KeyBank upped spending 13% to $35 million and $15 million, respectively. Corona and AirTran each declined 18% to $15 million and $55 million, respectively. No losses.

Creative B
Still solid with innovative efforts for clients across all media. New, engaging hook for KeyBank's customer testimonials syncs voiceovers with line-drawing cartoons. Fantastic feat for AirTran, promoting discount fares for college-age travelers with cute spots starring smart-mouthed septuagenarians who think young. Approach translated well with extensions on CollegeHumor.com and FunnyOrDie.com. Found attention-grabbing, fresh angle on faux-TV-news gambit in TrueCredit spot, with the on-air reporter unexpectedly slamming his face into a metal post to illustrate that it's good to always "know where you stand. Especially with your credit." Cleverly illustrates how CCM skate maker products are "built to be a part of you" by showing animated nerves, bones and skin coalescing into a client's skate. Big-product-shot approach for Corona, with a beach-party backdrop, felt flat. Poster with a Corona Extra bottle and lime wedge parted by the headline "Separation anxiety" is appealing. Nice art direction for Sea-Doo with a giant vertical jet of water capturing the thrill of a jet-ski ride. Porsche "silver pitchfork" ad showing the Cayman casting a three-pronged shadow was unattractive, but online Porsche iterations with clean visuals, quick cuts and uptempo ambient soundtrack were better.

Management B
Decent performance from this independent. Team led by CEO Peter Krivkovich and CCO Marshall Ross won 6 of 10 pitches. Targeting less than sexy but solid accounts (Burlington, Rayovac, Mohawk, Johnsonville) paid off. Additions are a good fit for the shop's hard-working, no-nonsense Midwestern approach. Built digital talent considerably with additions of vp, digital Jamie Anderson, vp, interactive account director John Doyle and vp, interactive group media director Brian Mandelbaum.

Regional Highlights
Milwaukee office won Johnsonville, Mohawk and Rayovac while N.Y. lured Burlington and Churchill Downs. Chicago HQ won TrueCredit. Milwaukee office welcomed ecd Chris Jacobs from The Martin Agency, who now has plenty of new business to work on.

Comments
Strong start to '09 with Q1 wins from Edward Jones ($35 million), Direct General ($12 million).

FINAL GRADE: B-




CRISPIN PORTER + BOGUSKY

Numbers B-
Billings up 16% to $1.33 billion. Revenue up 15% to $138 million. Won Best Buy ($230 million), Microsoft Windows ($106 million) and Zune ($40 million), Old Navy ($150 million), Hulu ($50 million), Guitar Hero ($40 million), Aliph Jawbone ($2 million) and Save the Children. Lost Nike Running, Nike+ ($50 million), Compass Bank ($10 million). Revenue from late-December Best Buy win not yet realized. Worst revenue/staff ratio across all 25 agencies precludes higher grade.

Creative A-
Oddly funny with a competitive bite continues to work for Burger King in "Tiny Hands" spot that has a guy salivating for a double cheeseburger fearing he'll have to settle for McDonald's smaller sandwich instead. Brooke Shields as off-kilter Routan pitch woman and wannabe activist creates buzz-worthy grown-up appeal for VW minivan. American Express Open commercial with businessman entertaining prospective foreign clients humorously depicts the perils of paying with a credit card that can't be taken seriously but loses steam when it drags on to 1-800 number pitch. Microsoft debut begins on an awkward note when the unlikely pairing of Seinfeld and Gates produces a painfully unfunny buddy trip. First "I'm a PC" spot finally strikes back at Apple with well-paced, all-inclusive global anthem. Without the benefit of sound and motion, print has less sass but Microsoft ad succeeds with simplicity, visually linking multiple devices, from mobile to desktop, with one pictured experience. VW multi-platform effort harnesses live polling power to find out "what the people want," using, in part, SMS voting in response to questions on Times Square's ABC SuperSign.

Management A-
CEO Jeff Hicks and co-chairmen Alex Bogusky and Chuck Porter kept  this Boulder-Miami agency growing at double-digit pace for seventh year in a row and added 246 staffers last year across all disciplines and all levels. This proved to be an overconfident move when the MDC shop cut 7% of staff, about 60 people, in early '09. Agency backtracked on its no-spec pitch policy as relationship with Nike quickly soured over creative differences, learning that sometimes the process provides valuable foresight into the future success of the client/agency pairing. Successfully pitched Microsoft, Guitar Hero, Hulu and Old Navy, giving agency additional expertise in the ever-important technology sector and a chance to prove its creative chops on a female-targeted fashion brand. Bolstered digital production capabilities with texturemedia acquisition. In the quest to bake marketing into product development, agency revved up product innovation group, led by John Winsor, executive director of strategy and product innovation, and Neil Riddell, director of product innovation: produced unique designs for Domino's (Knock Box, TiVo ordering systems), Burger King (Flame fragrance), WD-40. Developed an eco-friendly sponge line, Twist, and a European-style bicycle sharing program, B-Cycle, that will debut in Denver later this year. Secured next generation of leadership, promoting BK steward Rob Reilly to co-ecd alongside Andrew Keller, who oversees VW creative, to partners along with group account director Steve Erich and COO Eric Lear.
  
Comments
Work from Adweek's Agency of the Year continues to polarize as much as it provokes, most recently with first work for Old Navy starring "Super Modelquins" and another round of Microsoft work that slaps Apple's higher product prices in "Laptop Hunters." Shop continues to reel in new business, adding Harley-Davidson's Buell Motorcycles in March.

FINAL GRADE: B+




DDB

Numbers C+
Billings up 4% to $4.06 billion. Revenue up 5% to $695 million. Won b-to-b duties on both AT&T ($120 million) and Microsoft's Office Live ($25 million), Anheuser-Busch's Bud Lime ($45 million) and American Ale ($20 million), Unilever ice cream brands ($20 million in U.S.), Duramed Pharmaceuticals' Seasonique ($20 million), Aveeno hair care ($15 million), Corn Refiners Association ($15 million), Philips' Sonicare ($10million), Legg Mason ($7 million), McAfee ($5 million), global Tourism Australia ($4 million in U.S.). Lost Carnival Cruise Lines ($70 million), LensCrafters ($35 million), WellPoint ($25 million), Clearwire ($4 million), Cigna ($3 million). Shop also felt impact of September '07 Subaru loss ($140 million).

Creative B
Bud Light spot where 30-something husbands at party peel off to the kitchen with beer inside a faux cheese hunk, baguette and Chablis box strikes a knowing chord with man-boy target. The boys' soccer setting, trophy vs. Happy Meal choice in McDonald's spot feels true to the brand. State Farm spot featuring a little girl who morphs into a teenager as she asks dad for car keys effectively delivers "kids grow up fast" message. ESPN International spot where a sports-obsessed husband needs Post-it notes to identify objects in his house but can rattle off arcane statistics humorously captures the sports nut crowd. Integrated effort for McDonald's coffee launch in Starbuck's home state deftly uses guerrilla marketing (giant talking cup) and Web site with games to playfully skewer its pricier rival. Saturated red hue of print ad for Wrigley's Big Red with racecar driver Pablo Montoya grabs attention but "He's with us" headline lacks the same energy.

Management B-
Omnicom network deepened its roots with global clients (A-B, Unilever, Philips) in Chuck Brymer's third year as worldwide CEO. U.S. pitch conversion rate improved to 65% (11 of 17) from 58% in '07 (14 of 24). To grapple with multi-channel brand communications, Brymer bowed concept of chief community officer, with N.Y. and Paris offices naming Joe Cianciotto and Thomas Clement, respectively, to role. In shift to a regional approach to business development, shop in June replaced longtime worldwide new business chief Cleve Langton with U.S. director of business development Brandon Snow, senior director of global marketing partnerships at NBA.

Regional Highlights
Venice, Calif., office, with help from N.Y., retained Wells Fargo after it acquired Wachovia, and led network's successful pitch for Tourism Australia. In January, Chicago deepened its creative bench with group cd John Maxham, an ecd at Maiden Lane, and executive producer of integrated creative Ashley Vinson, a BBDO senior producer.

Global Highlights
In September, former JWT London ecd Nick Bell joined the London office in the new role of international CD on Unilever's Lipton. Brussels won pan-European duties on Bridgestone ($30 million) and Brazil won local duties on Intel ($10 million). Network placed second at Cannes with 49 Lions, including print Grand Prix.

Comments
Brymer finally shakes up N.Y. creative department in February, ousting Lee Garfinkel, chairman, CCO since 2003. Brought in BBDO ecd Eric Silver as new CCO, and rank and file are hoping for a fresh start, new momentum. Naturally, a big win would go a long way toward reenergizing N.Y.

FINAL GRADE: B-   (*BBDO's financial and final grades were raised to reflect updated headcount information.)




DEUTSCH

Numbers B-
Billings up 9% to $2.7 billion; revenue up 10% to $242 million. Won Dr Pepper ($35 million), Kodak inkjet ($30 million), Snapple ($25 million), WellPoint ($25 million), Diet Dr Pepper ($20 million), Sports Authority ($15 million). Lost USAA ($15 million), Westin ($10 million). Revenue from late '07 Sony PlayStation ($170 million) win realized.

Creative B
LittleBigPlanet's Sackboy (Sony PlayStation) is sent through succession of artsy-crafty, carnivalesque dioramas in TV work to show the power of play and, in a perfect complement, a narrator reminds us, "If fun didn't matter, Halloween costumes wouldn't come in adult sizes and no foods would be available on a stick." Ikea flat-pack boxes become building blocks in a clever campaign announcing the opening of a Brooklyn showroom; in the TV spot, boxes represent the New York skyline and famous city landmarks, such as the Brooklyn Bridge, which are then animated. An integrated campaign for Tylenol tweaks traditional positioning as pain pill to focus on the brand as the healthy/holistic choice. In TV, print and assorted Web widgets, Tylenol is cleverly portrayed as a relevant everyday brand that's an authority on avoiding headache-inducing eye strain and sleep deprivation. However, viewers might be left wondering why they need the product if there are all these ways to avoid pain in the first place. TV spot focusing on body parts and owners' relationship with them gets repetitive. In a fun extension of the campaign's play theme, magazine ads with cutouts double as Sackboy stencils for Sony PlayStation (just add spray paint, flat surface).

Managament B
Management team headed by New York-based CEO Linda Sawyer delivered a second year of 10% growth for IPG shop. First full year with Mick McCabe as chief strategy officer in New York yields new types of content for clients, like a documentary. Tried-and-true approach of attracting and retaining talent and winning accounts without a review ("WAR" as it is known internally) remains paramount.

Regional Highlights
The Los Angeles office continues to thrive, bringing in the Dr Pepper, Diet Dr Pepper, Snapple and WellPoint wins while suffering no losses. It will be interesting to see what comes of the relationship with Fresh & Easy, Tesco's U.S. attempt to "invent the neighborhood market from scratch" starting with 118 stores.

Comments
Trouble surfaced early as L.A. office in January laid off 40 staffers due to concerns over GM's Saturn business and loss of five-year TGI Friday's account in March ($90 million). WAR approach modified in '09 as agency entered traditional pitches for clients. So far, so good as L.A. is a finalist in the Honda motor sports and RadioShack reviews. N.Y. got cut from Delta Air Lines contest but remains in PNC Bank pitch. Is more from Eastman Kodak Co. on the horizon? Stay tuned.

FINAL GRADE: B




DRAFTFCB

Numbers D
Billings, revenue rose 3% to $6.1 billion and $605 million, respectively. Won MillerCoors media (handles 75% of $400 million as a member of MC Media), Eli Lilly's Cymbalta ($160 million), Molson and Killian's Irish Red ($10 million combined.) Added pet foods from Del Monte ($15 million), PSE&G and Cephalon ($15 million each) and Centocor ($10 million). More from Wyeth, Ingersoll Rand, ViaCell and Boehringer Ingelheim. Lost Doubletree ($10 million) and Washington State Business and Tourism ($5 million). Miller November win came too late to affect revenue. Fourth-worst revenue/staff ratio prevents higher grade.

Creative C
Qwest spot communicates that nothing is as bad as waiting for the cable guy with news style interview of stranded airline passengers. Oddball yet riveting yodeling theme song and uber-violent quick-cut imagery combine in hit viral spot for EA's Mercenaries title. Coors Light effort integrating real football coach banter with antics of four guys trying to open a cooler provides a mild diversion. Kraft commercial with American and Asian girls forging a bond as they watch each other dunk Oreos in different trains at a railroad station is too cute for its own good. Out-of-home effort with giant Oreo riding a mall elevator into a huge vat of milk was, quite literally, a slam dunk. Texting campaigns efficiently link Coors to events like the NFL draft and Nascar.

Management C-
CEO Howard Draft delivered an unspectacular year, as agency continued to roll out the integrated, post Draft-FCB merger model in second-tier markets in all regions. (First-tier markets were merged and reorganized in '07). No improvement creatively from '07. Other than MillerCoors win, the year was disappointing. Draftfcb Chicago chief media officer Bob Bernstein took the lead on MillerCoors media AOR pitch (Draftfcb had handled planning for MolsonCoors). Shop subsequently launched MC Media with Initiative, with Bernstein as managing director. He remains chief media officer.

Regional Highlights
New York attracted Starbucks direct/CRM and Kraft Wheat Thins, as well as Nestlé's infant formula portfolio. Kept Jamaica Tourism after a pitch. West Coast picked up work from Del Monte, Pacific Gas & Electric and King 888.

Global Highlights
Added 52 clients to roster outside of U.S., notably Disney and Hitachi in Japan, BP in Australia, BK and Microsoft in Singapore, Sara Lee in Poland, 3M in Taiwan and the Central Office of Information and Dorchester Collection in the U.K.
 
Comments
2009 began with something of a shakeup: Draft passed the CEO title to longtime deputy Laurence Boschetto and Chicago-based worldwide CCO Jonathan Harries added the title of vice chair. Two other key moves: Michael Simons moved from shop's Asia-Pacific region to become CCO in New York, and Chris Miller joined from Element 79 as group management director for interactive. In early April '09 the shop's Chicago office added Miller Lite ($140 million).

FINAL GRADE: C-




EURO RSCG

Numbers C+
Billings and revenue rose 8% to $5.2 billion and $720 million, respectively. Won Chivas ($90 million), Levitra ($70 million), NYSE Euronext ($30 million), Jaguar digital ($10 million) and The Atlantic ($5 million). LendingTree joined as '08 began but no campaign emerged. Lost Hyatt ($40 million). Among existing clients, these rose: Reckitt Benckiser (22% to $580 million); DirectBuy and ExxonMobil (each more than doubled to $180 million and $140 million, respectively); Barilla (30% to $20 million); and Western Union, (33% to $15 million).
 
Creative B-
PowerShares spot in which a guy travels inside his own head and meets his notions on investing is a fun, surreal highlight. Dos Equis' "Most interesting man in the world" series is iconic for the category and manages to stay fresh and feisty. Techno-driven, effects-propelled 90-second Jaguar opus effectively conveys the thrill of a speedy night drive. Two approaches fall flat for Charles Schwab in continuation of "Talk to Chuck" theme, with the firm's namesake addressing investors' fears in one spot and animated versions of its customers discussing their concerns in another. Atlantic effort is highly integrated and translates into a Web site that fares better, allowing people to respond to on-screen questions. Integrated "Tale of the Magical Cracker" push for Kraft uses multimedia elements to good effect. Print often features memorable imagery -- neon-sign headlines in moody outdoor locales for The Atlantic and people made of wool for Woolite -- but underlying rationale is difficult to grasp.

Management B-
CEO David Jones and his team led this Havas-owned network to a solid year, while expanding and diversifying. One example: acquisition of indie music label The:Hours, which recently launched the debut album by rockers Fires of Rome and penned an original song for a 30-second Triscuit spot. Kept vow to get more digital, adding i-shop Kadium and integrating its staff into S.F. office, as well as building out search-marketing offering through Euro RSCG Edge. Numerous key hires throughout network, including Con Williamson (CCO in N.Y. from JWT); Greg Johnson (president, Euro RSCG Edge from First Marblehead); and Matt Ryan and Tara Abrams, both from Arnold, to lead new business efforts globally and in New York, respectively.

Regional Highlights
North American CEO Esther Lee and North American CCO Jose Cabaco both exited in the fourth quarter. Shop is not seeking replacements. Chicago-based Ron Bess took over as COO of N.A., working with Ron Berger, N.A. executive chairman in N.Y.

Global Highlights
Partnered with former U.N. Secretary General Kofi Annan on his global climate change initiative, and is preparing to launch a new campaign at Cannes in June. Added Ogilvy's Joe Wang as chairman of North Asian ops and named C.C. Tang CCO, North Asia.

Comments
Jones, who remains CEO of Euro RSCG, began '09 heading up new umbrella group Havas Worldwide, into which all of the holding company's creative, digital and design shops report, including Euro RSCG and Arnold. Now he's got even more to prove.

FINAL GRADE: B-




GOODBY, SILVERSTEIN & PARTNERS

Numbers B+
Billings up 13% to $2.6 billion. Revenue up 22% to $135 million.  Won Quaker Oats ($120 million), Nintendo Wii Fit, Wario Land, Super Sluggers ($55 million), Tostitos ($25 million), Propel ($30 million), Frito-Lay Dips, and digital assignments from Dreyer's and GE. Lost Hyundai ($330 million). Unimpressive revenue/staff ratio prevents higher grade.

Creative A-
Emotive NBA "There can only be one" campaign inspires split-screen media trend. Spots that marry close-ups of competing players voicing same desire to win showcase strong copywriting, distinctive visuals. Comcast spot turns rabbits-are-fast cliché into over-the-top, imaginative metaphor for speed. White Gold spot introducing rock musician character pumped on milk hilariously delivers product pitch in a package teens can relate to. Hyundai's spot that surrounds the unmoving car with an army of ringing clocks is an elegant, distinct demonstration of Genesis' quiet ride. HP spot in which a conductor swirls images around him visually grabbing, but disappoints with dull desktop shot ending. Sprint's Nascar ad with flame-like speed lines drawn around racecar is attention-getting; its NFL print ad, however, takes obvious shortcut, plopping phone in field seating chart. Haagen-Daz "Bees" campaign brand appropriate and exquisitely executed across platforms: Romantic "Opera" TV spot is epic extravaganza showing symbiotic relationship between product's natural ingredients and the insects; "Honey, please don't go" print for special honey-vanilla flavor and help save the honey bees Web site continue fundraising for research pitch with charm and creative flair. Doritos haunted house Web site hair-raising in dead-on homage to horror classics like The Shining.

Management B+
Another strong performance by shop that also enjoyed a 20% revenue gain in '07. Management team, including co-founders Jeff Goodby and Rich Silverstein, effectively mined existing relationships to add sizable pieces of new business, such as PepsiCo's Quaker and Propel brands, and attracted new clients such as Nintendo. Identified another layer of talent for leadership. Mike Geiger was promoted to chief digital officer and associate partner; Joshua Spanier, chief account director on HP, was named director of communication strategy; creative director Will McGuinness and group creative directors Rick Condos, Hunter Hindman and Christian Haas all named associate partners. Group account directors Todd Grantham, Brian McPherson and Rob Smith also named associate partners. Joined sister Omnicom shops to jointly pitch late-year HP global consolidation review that successfully came to fruition for holding company parent in '09. Nailed Nintendo, but fell short in bid for Levi's. Continued to grow its digital business. More than half of shop's output is non-traditional and most of that is digital and established digital analytics capabilities with the addition of three dedicated staffers.

Comments
Agency snared Denny's ($60 million) in January '09. First work produces surprising Super Bowl hit with ironic "Nannerpus" commercial. Anheuser-Busch axed shop from its roster in March after nearly 15 years of memorable work with the brewer. Impact of Hyundai loss not yet realized as account wraps up its work with the agency in April '09. But shop has proved adept at filling roster holes and remains the standard bearer for smart, compelling creative.
 
FINAL GRADE: B+




GREY

Numbers B-
Billings, revenue up 5% to $4.5 billion and $673 million, respectively.  Won Interstate Bakeries Corp. ($30 million), BMW of North America (dealer group, $30 million), LongHorn Steakhouse ($20 million), Allergan Latisse ($15 million), Wyeth ThermaCare ($15 million), Boehringer Ingelheim Micardis ($12 million), MLB World Baseball Classic ($10 million), Procter & Gamble Escada Fragrances ($10 million), Diageo Captain Morgan ($10 million, digital), Pure Inventions ($8 million), Green Earth Technologies ($5 million). Boosted billings from P&G's Cover Girl, Pantene and Febreze brands ($35 million) and GlaxoSmithKline's Aquafresh, Breathe Right and others. Lost Tanqueray ($1 million). Best revenue/staff ratio of 25 agencies graded plus ninth-largest dollar revenue increase lift grade.

Creative B-
Tart and sweet, E*Trade's "Talking Baby" Super Bowl spot was the fan fave of the 2008 game. To show ease of service, a tot tosses off stock tips -- then tosses lunch. In a predictable Dairy Queen spot, dad dazzles kids on Parents Day by bringing in his Blizzard machine and whipping up treats for the class. Captain Morgan, featuring a guy lured to a bar by a friend's text message purportedly picturing him in the presence of hot women, needs to be refreshed. Ellen DeGeneres' pretty tomboy look and self-effacing charm prove a hit for Cover Girl on TV and in print. Cleverly and raids the blogosphere with posts by "pukingbabyXLII," driving traffic to E*Trade site. Print for Pure Inventions presents an uncomfortable mix of bloody images and flavored water.

Management B-
Business better a year after Jim Heekin named chairman, CEO of Grey Global Group. CCO Tor Myhren and president Steve Hardwick, who joined Grey in 2007, boosted client roster and creative performance. Grey N.Y. added three ecds to its talent roster: South African creative star Noel Cottrell in April; Don McKinney (who's also director of digital development) from Cole & Weber United, Seattle, in May; and creative consultant Todd Tilford (Crispin Porter + Bogusky) in December. Christopher Ross joined as global account director on Diageo, a new position.

Regional Highlights
B.A. Albert, former CEO of Match, became the president, CCO of Grey Atlanta in May. Alain Groenendaal joined as president of Grey's Hispanic marketing agency, Winglatino, in August. Maureen Maldari was promoted to global client services director on GlaxoSmithKline in October. Brad Fogel was appointed managing director of Grey West (from CMO) in November. Regional wins include Travelport ($5 million, Atlanta) and Word & Brown ($1.5 million, San Francisco).

Global Highlights
Account wins included Hong Kong Tourism (global account), Chevrolet (Central Europe), Telefonica in Spain, Telecom Italia, Five Media (U.K.), the Bank of Communications (China) and Playtex (Latin America). Grey Europe, Middle East and Africa was named Agency of the Year at the Euro Effies for the fourth straight year. Grey Spain won the Grand Prix in print at the London International Awards and Marketing magazine shortlisted Grey London Creative Agency of the Year for 2008 turnaround. Nirvik Singh, a 19-year company vet who built Grey India into a top agency for the region, became chairman and CEO of Grey Group Asia Pacific in December.

Comments
Heekin still evolving his dream team following exit of Hardwick in March.

FINAL GRADE: B-




HILL, HOLLIDAY

Numbers B+
Billings, revenue up 16% to $1.74 billion and $260 million, respectively. Won more from Verizon Wireless ($25 million), EmblemHealth ($10 million), digital from Dunkin' Donuts ($10 million) and Dunkin's retail push via J.M. Smucker ($5-10 million). Lost Toys R Us ($65 million). Existing clients upped spending, including Chili's (up 60% to $125 million), Liberty Mutual (up 25% to $115 million), Dunkin' (up 18% to $130 million) and Verizon Wireless (up 8% to more than $200 million excluding new assignment above). John Hancock was flat at $25 million, while CVS dropped 15% to about $115 million.

Creative B
Styles range from thoughtful to affirmational to plain silly. Especially adept at adapting themes across multiple media channels such as with Liberty Mutual's "Responsibility. What's your policy?" campaign. This won several honors, including the MIXX gold award for cross-platform integration. Online element, asking users what they'd do if they witnessed various crimes, more thoughtful than preachy -- a standout in insurance arena. Chili's commercials show enormous chili peppers wheeled through town on flatbed trucks and office drones settling for lunch from a "Sling Dog" cart that tosses franks through windows. It's pleasingly goofy and, more importantly, memorable. Veteran "America runs on Dunkin'" campaign continued with spots that eschew familiar indoor settings for sunny hillsides (which folks climb pumped up on coffee) and rooftops (one perky neighbor shouts, "It's my sixth cup!"). EmblemHealth print employs simple monochrome line drawings with company's orange/purple chevron logo adding color as it morphs into a podium, shopping cart, etc., to symbolize its integration into people's daily lives. The clunker: Bank of America's Wealth Management ads, with copy that takes one beat too many to sink in ("Does your old retirement plan make sense in the 'new economy'? Did it make sense in the old economy?").

Management B
Two years after the departure of co-founder/Boston business legend Jack Connors, current management has settled in and successfully remade shop from old-school, "high-rise," TV-driven ad agency to more nimble "communication company" producing integrated work across range of clients. The move from Boston's tallest building-the John Hancock Tower-to funkier, more open digs in financial district symbolizes new approach. In the region, there's no stronger team than CEO Mike Sheehan, president Karen Kaplan, CCO Kevin Moehlenkamp, chief strategist Lesley Bielby and media head Baba Shetty. The proof: back-to-back years of double-digit revenue growth, including 25% surge in 2007, solid creative output and selling more services to current clients. Lack of new-business activity, however, could be cause for concern.

Regional Highlights
New York office skillfully handled EmblemHealth's rebranding. Unappealing campaign for BI-LO out of Hill, Holliday's Greenville, S.C., affiliate Erwin-Penland shows grocery chain "auditioning" tomatoes and heads of lettuce.

Comments
IPG shop could be hard-pressed in '09 to repeat laudable gains of recent years given weakened economy. New-business machine needs to get in gear to avoid backslide.

FINAL GRADE: B




JWT

Numbers B-
Billings up 6% to $3.95 billion. Revenue up 9% to $698 million. Won global Microsoft Business Solutions ($100 million in the U.S.), 17 Johnson & Johnson prescription brands ($80 million), Diageo brands Jose Cuervo ($40 million) and Baileys ($15 million), BlueCross BlueShield of Tennessee ($5 million). Lost Kraft Foods' Philadelphia Cream Cheese ($20 million), Welch's ($15 million), Nestlé's Butterfinger ($1 million). Revenue from December 2007 global Royal Caribbean win ($70 million in U.S.) kicked in.

Creative B+
Macy's spot featuring brand name in dialogue from TV shows such as Seinfeld and movies like Miracle on 34th Street playfully conveys the retailer's 150-year heritage and indelible place in popular culture. The use of broad humor in Huggies spot where a dad stems the firehose-like pee power of his son with the diaper disarmingly smashes conventions. Spot for Ford F-150 seamlessly mixes screen copy, illustrative images and a crunchy guitar riff to bring Denis Leary's rapid-fire voiceover to life. Filmic 90-second HSBC spot in which a woman protests deforestation, gets arrested and is bailed out, ironically, by her logger boyfriend, engrosses but overcomplicates the bank's local perspective positioning. MTV Rock the Vote spot in which an elderly couple struggles to understand the directions of an airport security screener uses funny lines ("You want me to take off my shirt?" the wife asks) and memorable characters to deliver "Old people outvote young people 2 to 1. Just sayin'" message.

Management B+
Worldwide CEO Bob Jeffrey's network delivered best growth among major WPP shops. The agency won 7 of its 11 pitches, up from 8 of 14 in '07. In November, Jeffrey recognized the contributions of New York leaders Rosemarie Ryan and Ty Montague by promoting them to North American president and co-president, chief creative officer, respectively. Jeffrey invested in global talent for Unilever and digital, hiring Fernando Vega Olmos, Lowe's worldwide cd on Unilever, in the new role of creative chairman of Continental Europe, Latin America, and former Agency.com worldwide CEO David Eastman as worldwide digital director, another new position. In September, Montague tapped former Saatchi & Saatchi, Torrance, Calif., ecd Harvey Marco as CCO to lead N.Y. creatives. Agency also had a strong showing in Cannes. The shop won 39 Lions-its most ever-including the Grand Prix in direct for the "Lead India" campaign for The Times of India.

Regional Highlights
The Marines-dominated Atlanta office expanded its client mix by adding BlueCross BlueShield of Tennessee. (Won but failed to come to terms on a contract). Chicago, in its first full year as a satellite of N.Y., lost its last major Kraft brand and Nestlé's Butterfinger.

Global Highlights
The network in January took a majority stake in New Delhi, India-based events/promotions shop Encompass and acquired 75% of Tagora, a digital shop in Brussels, Belgium. Unilever in December shifted creative duties on Knorr in Europe, Asia-Pacific, Latin America to Lowe. London-based Craig Davis, in his fourth year as worldwide CCO, resigned in July to return to his native Australia.

Comments
Ryan and Montague's persistence on Microsoft pays dividends again as Q1 opened with a win over Microsoft shop McCann Erickson to launch a new search product this summer. Shop shuttered its Chicago office (opened in 1891) in April following Kraft erosion.

FINAL GRADE: B




LOWE

Numbers B-
Billings up 11% to $1.57 billion. Revenue up 10% to $164 million. Won Outback Steakhouse ($75 million), three Johnson & Johnson prescription brands ($60 million), PricewaterhouseCoopers ($20 million), Aruba Tourism ($20 million), Unilever's Country Crock ($10 million), Life and Health Insurance Foundation for Education ($5 million). Lost XM Satellite Radio ($25 million), global Stella Artois ($15 million in U.S.). Revenue from December 2007 Sharp Aquos win ($75 million) realized in 2008.

Creative B-
J&J spot to promote the company's sponsorship of the Beijing 2008 Olympic Games in which a swimmer smiles as he recalls the "Go, Cullen, go!" cheers of his mom connects with a sweet, heartfelt delivery that epitomizes the brand's "Thanks, Mom" message. Giant solar cell panels on a space satellite, winery, lighthouse, etc., in Sharp spot successfully position company as a green technology player, though the albino astrophysicist spokesman comes off a bit stiff. Unilever Degree spot opens intriguingly with two guys playing virtual racquetball in a futuristic lab but degenerates into nonsensical cliché of a male -- albeit a robot -- getting hit in the crotch with a ball. Iconic portraits and consistently distinct strategy continue to propel milk mustache print ads for MilkPEP. Handwritten copy personalizes the message in colorful print ad for Aruba Tourism featuring two smiling boys. The tagline is inviting as well: "10,000 friends you haven't met."

Management B-
As the U.S. operation stabilized, worldwide chairman Tony Wright led successful expansion of shop's relationship with No. 1 client Unilever. In January, IPG agency won international duties on several Unilever ice cream brands and in April added projects on  global Knorr brand. Eight months later, the Knorr assignment evolved into lead duties in Europe, Latin America and Asia-Pacific region. IPG transplant Stephen Gatfield, in the final year of his three-year "assignment" as worldwide CEO, expanded network's offering via the acquisition of Paris activation/customer relationship management specialist One in July. New York office won 4 of its 6 pitches (losing bids for Wachovia and JPMorgan Investments), contributing to shop's reversal of fortune from a 15% revenue decline in '07. In December, chief strategy officer Domenico Vitale left to start his own agency, 22 months after joining N.Y. management team. To fill the opening, North American chairman and CCO Mark Wnek named Leeann Leahy, a global planning director on key client J&J, to the role of head of planning.

Global Highlights
Beyond Unilever, shop expanded its relationship with Nestlé, adding Nesfrappé, Pure Life in London and Nestlé's namesake chocolate and water in Indonesia. The gains were tempered by the loss of global duties on Nokia's Nseries devices, a London account that shifted in November. The same month WPP Group Unilever rival JWT poached Fernando Vega Olmos, the Madrid, Spain-based worldwide cd on Unilever, to become creative chairman for Continental Europe and Latin America, effective in January 2009.

Comments
The shop is eyeing three candidates to succeed Gatfield as CEO, aiming to give the strategic and client-focused Wright the operationally strong and client-savvy partner he needs. Both will operate out of London, the shop's historical headquarters.

FINAL GRADE: B-




THE MARTIN AGENCY

Numbers B+
Billings, revenue up 20% to $1.3 billion and $120 million, respectively. Won Hoover ($40 million), the American Cancer Society ($15 million), Walmart Smart Network and Walmart Corporate Responsibility. Added projects for Coca-Cola's Fuze, One.org, Rosetta Stone, Dynova Labs. Lost Sirius ($40 million) following XM Satellite Radio merger. Despite fourth-smallest revenue base, agency managed 12th-largest revenue gain.

Creative B+
Geico TV casts Mrs. Butterworth as translator in consistently funny, attention-grabbing testimonials that deliver customer service message in clever and entertaining fashion. FreeCreditReport.com spot stars ID theft victim as waiter at a rock star pool party who tells his plight in a comical, irony-filled, techno-driven music video parody. Walmart "Stock Up on Joy" commercial in which party host sings about his overflowing family gathering is refreshingly warm, non-saccharine double pitch for retailer and Coca-Cola. Walmart spot about two middle-age white guys challenging each other with Madden video game painfully long at 90 seconds. Black-and-white Alliance for Climate Protection spot pairing odd couple Al Sharpton and Pat Robertson to show bipartisan agreement on climate issues produces stiff results. Walmart YouTube effort smartly speaks to moms with useful user-generated money-saving tips on video. Fuze "Be Afraid, Breast Cancer" print feels too brash, boastful and unabashedly male; ad stressing its plastic vs. glass argument makes more practical point.

Management B+
The 31-year partnership of CEO John Adams and president and creative director Mike Hughes led the IPG agency to its fifth straight year of double-digit growth. The shop leverages its integrated services -- from media and data analytics to PR and mobile marketing -- very well. Martin has thrived rather than struggled with its mammoth Walmart client. It won pitches for the retail giant's corporate affairs business and the reinvention of its in-store TV network -- Smart Network -- which is expected to deploy 27,000 digital screens by 2010. And its "Save money. Live better" repositioning for the company has proved prescient and timely. New business activity included unsuccessful pitches for Hulu, Michelin and Hyatt. Executive hires included Linda Thomas Brooks, formerly of Trilogy and GM Mediaworks, to head up Ingenuity Media Group as president, as former president Mark Pavia assumed new innovation director role. Added creative directors Nancy Hannon, from Y&R Chicago, on Walmart, and Christian Wojciechowski, from Tribal DDB, as digital cd on Walmart. Brand First Entertainment helped attract new clients such as American Cancer Society.

Comments
The year began with a small victory, the U.S. Tennis Association account ($8 million), after a review. Shop continues to beef up digital capabilities, hiring chief digital officer Jonathan Sackett from Arnold in January '09. Cut 5% of its staff in February -- 24 employees -- in anticipation of client spending cutbacks this year.

FINAL GRADE: B+




MCCANN ERICKSON

Numbers B-
Billings increased 8% to $5.7 billion; revenue increased 10% to $632 million. Won Pfizer's Detrol ($70 million), Wyeth's Centrum and Caltrate ($68 million in total), Galderma ($40 million), BuickPontiacChevy Dealers Detroit ($25 million), GM's deal with Sirius/XM Satellite Radio ($10 million), GSK's Lovaza ($4 million). Lost Microsoft People Ready ($150 million), Sepracor Lunesta (creative only, less than $100 million).

Creative B
Quirky "Lips" Xbox spot using a-ha's "Take on Me" track connects with hipster gamers. Group motif getting tired in spots using Verizon Wireless red-shirted network army to battle a haunted house's "dead zone"; shoppers trying to use Staples' "Easy Button" to get discounts outside the office supply store uses predictable gags. Strong integrated effort for Dentyne repositions brand for tech-crazed consumers, encouraging them to log off and "make face time" even as it uses online devices to get them to do so. MasterCard 10th anniversary "Priceless" pitch takes campaign's high standards in traditional media online in prizes giveaway. Weight Watchers' "Lose for Good" integrated effort, which donated a pound of food to the hungry for every pound lost, legitimately leverages social responsibility sentiment.

Management B
McCann North America regional director Eric Keshin led the U.S. team to 13 wins in 19 new-business pitches in a quiet but steady year. Organic growth from Verizon, General Mills, L'Oreal and Cadbury. Agency attempted to bolster digital capabilities through hire of Naked's Faris  Yakob as chief technology strategist in December and creative team from AKQA, Alessandra Lariu and Qian Qian.

Regional Highlights
S.F. flagship client Microsoft handed plum assignments to Crispin Porter and JWT last year. New York team, led by office president Lori Senecal, failed to convert in pitches for over $500 million in new business, most surprisingly with $430 million Home Depot, where agency didn't advance to finals. The office bolstered ranks with former OgilvyInteractive CEO Mike Windsor as executive director of integrated operations and Claudine Cheever as executive planning director from Goodby. Former Burnett team of Josh Denberg and Paul Hirsch brought in as ecds on Microsoft. Rob Bagot promoted to CCO in S.F. In L.A., Cathy Saidiner, from TBWA\Chiat\Day, was named president at agency's Nestlé hub, replacing gm Ian McGregor, who retired.

Global Highlights
Expanded Unilever Bertolli relationship from U.S. to global AOR ($60 million) in March, although lost Unilever ice cream brands ($75 million) outside America. Added global Sony Ericsson work outside U.S. ($160 million) and global Siemens Energy ($50 million). India excelled, with McCann winning over 30 pieces of new business, including Sun TV ($27 million). In Japan, McCann's healthcare unit overtook Dentsu as the market's largest pharma player.

Comments
IPG shop will feel impact of GM's problems in '09.  As a result of Q4 '08 Verizon Wireless takeover of Alltel, agency is now working on the largest wireless brand in the U.S. Remains to be seen if McCann will hold on to Intel, after removal as creative lead in April '09. Following loss of $150 million from Microsoft to JWT last year and that agency's recent win of a $100 million new search product, McCann continues to lose grip on its largest account.

FINAL GRADE: B




MERKLEY + PARTNERS

Numbers C+
Billings, revenue up 8% to $863 million, $82 million, respectively. Won Dave & Buster's ($20 million), Breville ($10 million), Ruth's Chris Steak House ($10 million), interactive duties on Axa Equitable ($10 million), Pinnacle Foods' Log Cabin ($7 million), DWS Investments ($5 million), interactive duties on PSE&G ($5 million), Fuse ($3 million), Ferrero Rocher interactive project ($3 million). Lost Fuse, Women & Co. ($4 million). Revenue from Q4 2007 Schering-Plough ($40 million) win kicked in.

Creative B-
"Projection" TV spot for Mercedes in which ghost-like images of a pit crew and industrial drills used to assemble a car envelop a C-Class sedan in motion deftly illustrates voiceover message about the brand's "racing heritage" and "high-strength" steel reinforcements. "Smoke" spot depicting the C-Class kicking up a cloud of dust in slow motion crackles with grit and energy. The setting of a turbulent plane ride proves an apt metaphor for the recession in Axa spot where the brand's 800-pound gorilla gently prods a woman about the importance of "protecting some of your assets for retirement." Arby's work is mixed: "Warning" spot for a new sandwich where employees mock competitors hurling threatening notes attached to hard, frozen beef patties tweaks the competition with a wink, but the sight of an employee rubbing a rival's greasy burger into his hair in "Pompadour" is grossly off-putting. Art direction drives spot for a Breville espresso machine, especially an overhead shot of foam in the shape of a heart, but ultimately fails to differentiate the product. Fuse print ads cleverly use images such as guitar neck replacing a stair railing to translate the "music has a home again" headline.

Management B-
CEO Alex Gellert and co-executive creative directors Andy Hirsch and Randy Saitta raised their new business game, winning 5 of 7 pitches, up from 2 of 4 in '07. The new accounts were relatively small, however, and the biggest fish -- the $145 million Wachovia -- got away. In June, Gellert filled his chief marketing officer vacancy with Rob Moorman, worldwide CMO at Saatchi & Saatchi in New York. Moorman started July 1 and contributed to the Dave & Buster's and DWS wins. The Omnicom Group shop's media practice grew with the addition of Ruth's Chris and Breville, giving the 25-person department seven clients. To strengthen strategic planning efforts for clients like Axa and Schering-Plough, Gellert in June hired Euro RSCG senior planner Tom Han as a senior planning director, one of five at the 243-person shop. Hirsch and Saitta deepened their bench on top client Mercedes-Benz USA by adding creative group head Tom Quaglino, a cd from Lowe in N.Y. who joined in April, and associate cds Sakib Afridi, an acd from TBWA\Raad in Dubai, United Arab Emirates, who also joined in April, and David McMillan, a cd from BBDO in N.Y., who started in February.

Comments
Omnicom agency added another Pinnacle Foods brand -- Vlasic ($7 million) -- to its roster in March '09. Now it has its eye on PNC Bank's $100 million prize as one of half a dozen shops in current review.

FINAL GRADE: B-




MULLEN

Numbers C-
Billings, revenue up 3% to $1.17 billion and $155 million, respectively. Won Orbitz media ($90 million), SunTrust ($35 million), BASF ($10 million), National Grid, Adventures by Disney, Ticketmaster, Ryka, Dickies ($5 million each), Kingsdown, CSC, Harry & David, Gaia Online ($2-3 million combined). Successfully defended GM customer relationship marketing, Grain Foods Foundation trade group (approximately $2-3 million combined). Lost LendingTree ($50 million), Marshalls ($50 million). Impact of late-October loss of Wachovia ($150 million) not felt in '08.

Creative B
Solid executions deeply integrated into online efforts. Whimsical research lab setting for Orbitz positions it as "cure" for frustrated travelers, subverts category conventions. "Polar Bear" spot for National Grid in which people frolic with friendly beasts employs visual sense of wonder to convey pro-ecology message. Uncluttered National Grid Web site has attractive imagery, online community and doesn't preach. La Quinta spot amuses by offering respite for travelers so tightly packed on plane they seem to share a brain. Regional print, Web efforts for New England Aquarium stand out, e.g., Boston landmarks "dressed" in sharp teeth and pointy fins in ads promoting shark exhibit. GM CUV "Used Car Ambush" notable lemon; dull, confusing, quickly forgotten.

Management C
The team led by CEO Joe Grimaldi and CCO Edward Boches had a tiny revenue increase as shop wasn't present in many big pitches and many new business wins didn't make hearts beat faster. Pitch ratio -- 12 of 20 -- just above average at 60%. There were two key senior hires -- ecd Mark Wenneker and chief strategist Stephen Hahn-Griffiths. Wenneker, Boches' heir apparent, maintains the generally high level of creative. IPG shop also formed a dedicated "ideas and innovation" practice within its mediaHUB buying unit that has done social media work for Timberland (the Paul Brogan/MySpaceTV campaign), as well as "Commuter Confidential" micro-series for Match.com. Made tough but necessary move to trim staff, firing 40 employees in November.

Regional Highlights
Winston-Salem, N.C., office hired Juan Perez as ecd and picked up CSC, BASF and SunTrust. Pittsburgh won Harry & David.

Comments
A new era for this New England institution opens in May when it moves from its wooded Wenham mansion to urban digs in downtown Boston. Keeping the "outsider" creative culture intact will be important, but leveraging that reputation to win significant accounts is paramount. 2009 started poorly, with nine-year roster staple T.J. Maxx placing its $35 million broadcast assignment in review in late March with Mullen not defending. Cut 30 more staffers in March. Shop has a long history -- 30-plus years -- of cyclical ups and downs but the current climate and loss of momentum/morale (following two rounds of layoffs) will make a bounceback considerably more challenging than in past years.

FINAL GRADE: C+




OGILVY & MATHER

Numbers F
Billings up 14% to $2.64 billion; revenue down 2% to $656 million from $670 million (restated to better reflect all units). Won Career Education Corp. ($95 million), two new Coca-Cola products ($60 million total), CRM duties on Sears/Kmart ($40 million), Time Warner Cable's Road Runner ($20 million), ClearCard ($20 million), global Thomson Reuters ($10 million in U.S.), global Stolichnaya ($5 million in U.S.), Cargill's Truvia ($4 million), $75 million in digital assignments on MetLife, Castrol, Vaseline, Oscar Mayer, Honey Bunches of Oats, Tassimo, Nestlé Crunch, Raisinets. Won, lost Wachovia ($145 million). Lost Kodak inkjet printers ($10 million). Clients slashed spending:  American Express (down 30% to $355 million), IBM (down 14% to $105 million). Coke products yet to launch.

Creative B+
AmEx TV spot depicting Tina Fey getting excited about a "unique opportunity" from director Martin Scorsese at an airport entertains and informs. Office-set spot for IBM in which an underling quantifies cost savings generated by her green proposal to a skeptical boss colorfully captures his "aha" moment. Time Warner Cable spot where a woman is trailed all day by Don Juan on a horse serves as a smart metaphor for thinking about movies. Integrated "World's Biggest Film Junkie" effort for Tribeca Film Festival (wild postings, posters, YouTube postings) deftly turns video entries into target-appealing Web content. Playboy-like Q&A format in AmEx print featuring Fey stays fresh via handwritten replies. Stolichnaya print ad theme ("The Wild Wild West Is in the East") feels parochial for global brand.

Management D+
In Shelly Lazarus' final year as CEO, shop engaged in cost-cutting as clients spent less and shifted money into disciplines it didn't handle. In January, about 4% of the N.Y. workforce (75 jobs) was eliminated, mostly in account management. The shop finally won a big pitch-the $145 million Wachovia account in September-only to see the business evaporate after Wells Fargo acquired Wachovia. Lost pitches for Office Depot and Levi's and failed to get beyond RFP stage in Carnival Cruise Lines' $70 million review. Shop won 10 of 14 pitches, though some wins, like Truvia, were small. Lazarus ended her 12-year run handing the reins to Asia-Pacific chairman Miles Young, 53, effective Jan. 1, 2009. Lazarus, 60, remained chairman.
 
Regional Highlights
The Los Angeles office in January promoted executive group director Elizabeth Shanklin to new post of managing director. Chicago president Jack Rooney shed his role as North American CEO of OgilvyAction in November, when managing director of experiential marketing Sheila Hartnett rose to the position, effective Jan. 1, 2009.

Global Highlights
OgilvyOne London in April won global direct, CRM duties on British Airways. The network in July took a majority stake in Prague digital shop Advertures and in August acquired 51% of Yunes, an activation shop in Cordoba, Argentina.

Comments
Young installed global client leader John Seifert in January 2009 to run North America as chairman (new post), with N.A. co-CEO Bill Gray sliding into vice chairman and N.A. co-CEO Carla Hendra continuing to focus on N.Y. Moves came two weeks after shop laid off 150 staffers in advertising, direct, digital. More change is likely needed to shake this WPP network's funk.

FINAL GRADE: C-




PUBLICIS USA

Numbers A
Billings up 17% to $4.7 billion; revenue up 16% to $549 million (based on estimated restated numbers to include Modem). Won PayPal ($8 million), Sanofi Pasteur ($6 million), TruGreen ($3 million), HomeAway ($2 million). Lost Washington State Lottery ($15 million), BMW Southern, Eastern dealers. Strong organic growth from existing clients, including Whirlpool (up 48% to $125 million). Revenue from Sanofi vaccine division, won in 2007, realized in 2008.

Creative B-
Latest spot with basketball's Dwyane Wade trying to get into ex-NBA star Charles Barkley's T-Mobile My-Faves is popular with consumers. Citi "Northern Lights" commercial, with young couple celebrating anniversary in bare-bones cabin, feels appropriate in down economy. Metamucil "Beautify Your Inside" spot is run of the mill. Pepto-Bismol takeover of NYC laundromats using images of human midsections to frame churning washers a clever out-of-home twist for a conservative client. Denny's Allnighter integrated pitch, targeting club kids and the bands they want to adopt, grabs attention for the chain's 24-hour menu. Print for Coinstar and Sominex shows strong graphic sensibility.

Management B+
CEO Susan Gianinno achieved sixth consecutive year of 15%-plus revenue growth. Former J&J, Nike advertising chief Joe McCarthy hired as CEO N.Y. and as a partner to CCO Rob Feakins in September. P&G relationship bolstered with addition of former Saatchi, Grey exec Tim Carlisle to run P&G Vicks global account. JWT's Chris Berger named to new post of integrated production director. New focus on digital is paying off.

Regional Highlights
Dallas broadened Terminix relationship by adding direct and digital as well as sister company TruGreen. Publicis in the West/Seattle launched T-Mobile G1 Google phone and won vacation rental provider HomeAway. Indianapolis picked up state lottery assignment and WNBA franchise. Digital credentials enhanced with addition of Kevin Drew Davis, formerly global interactive cd at Wieden, as digital cd in Dallas. Former AOL, R/GA exec John Rabasa appointed managing director, Publicis Modem/West.

Global Highlights
Publicis Modem launched aggressive expansion into 40 markets, including China, India and Russia. In U.K., Nigel Jones, president of Draftfcb London, hired as CEO to fill top job, vacant for a year, at struggling outpost. Efforts to raise global creative profile paid off, with Publicis placing in the top 10 in the Gunn Report for first time. In France, added Airbus ($25 million) and easyJet ($25 million); in Canada won Home Depot ($25 million).

Comments
Strengthening relationship with P&G resulted in winning rest of company's oral care business in January '09, but shop is exposed to risk of spending declines in '09 from financial clients Citi and UBS.
 
FINAL GRADE: B+




SAATCHI & SAATCHI

Numbers D+
Billings fell 7% to $3.99 billion, revenue flat at $331 million. Won $30 million in General Mills new products, line extensions (Stickers, Fiber One, Yoplait, Progresso), global Cadbury confectionary brands ($20 million in U.S.), SABMiller's Miller Chill ($20 million), Healthy New York ($10 million), Miller High Life Extras ($5 million), Flexjet ($3 million), Norvartis corporate digital project ($1 million). Lost Wendy's ($365 million), global Sony Ericsson ($5 million in U.S.). Above average revenue/staff ratio lifts grade.

Creative B+
"You can say anything with a smile" TV spots for Crest score big via grin-happy characters whose deadpan delivery of lines like "I'm knocking down the playground" (to four kids) is integral to the joke. Likeable, down-to-earth deliveryman aptly personifies the brand in Miller High Life spot where he reclaims the beer from  rich folks. "Working Late," sequel to the original talking stain spot for Tide to Go, has funny moments like the look on Christine's face when Louis' dual stains first screech. The folly of kids using remotes to control real race cars at the track injects welcome fun into Toyota's sponsorship of Nascar. Web-film-driven "Doghouse" effort for JC Penney, which reveals what happens to men who fail to buy romantic jewelry for their wives (they fall into an underground "prison"), succeeds via cross-appeal, skewering of male psyche.

Management C+
Big culprit in ending two-year growth spurt was Wendy's, which in January shifted lead creative duties on its $365 million account to Kirshenbaum Bond + Partners. To fill the hole left by the November 2007 resignation of New York chief creative officer Tony Granger, worldwide CEO Kevin Roberts hired Gerry Graf, ecd at TBWA\Chiat\Day, New York. Graf, 41, started in February, but Roberts held Granger to his contract, keeping him through April. Embarrassment surrounded "Speed Dressing" spot for JC Penney: production company Epoch Films submitted it (with Saatchi in credits), won Cannes bronze but then withdrew entry after the client said ad had never aired. The Publicis Groupe agency's 5 of 7 pitch conversion ratio improved from '07's 4 of 8. In January, Roberts rewarded N.Y. leaders Mary Baglivo and Rob Moorman for past success, promoting them to chairman/CEO of the Americas and worldwide CMO, respectively. (Moorman left in June). In November, worldwide cd Bob Isherwood exited after 22 years.

Regional Highlights
The Torrance, Calif., office in June won a gold Effie for its '07 Toyota Tundra campaign featuring demonstration spots. Office ecd Harvey Marco resigned in August and a month later became CCO of JWT N.Y. In November, the shop filled the slot with Goodby, Silverstein & Partners' cd Mike McKay. Global highlights The 15-brand Cadbury win was shared with sister shop Fallon under new alliance SSF Group. London rebounded a bit under SSF U.K. CEO Robert Senior, winning Axa, Bally, Jamie Oliver. Cannes success continued with shop winning 43 Lions -- up from 33 in 2007.

Comments
P&G's January decision to shift global brand Crest to Publicis, effective June 30, stems from client's desire to bundle oral care brands (Publicis has Oral B) but still stings, particularly after losing PUR in '07, Old Spice in '06 and Eukanuba in '05. The shop must wonder why it keeps getting nicked.

FINAL GRADE: C+




TBWA\CHIAT\DAY

Numbers C
Billings up 8% to $2.87 billion, revenue up 4% to $352 million. Won PepsiCo's Gatorade ($180 million), Pepsi/Diet Pepsi ($90 million) and Pepsi Max ($50 million), Michelin ($45 million), global Adidas digital ($20 million in U.S.) and Dial Corp.'s Combat, Renuzit, Soft Scrub ($15 million combined). Lost Washington Mutual ($130 million), LeapFrog ($25 million), Embassy Suites ($20 million), global Chivas ($5 million in U.S.). Q4 Pepsi, Diet Pepsi, Pepsi Max wins came too late to boost revenue. Fourth strongest revenue/staff ratio lifts grade.

Creative A-
Two-year-old "Get a Mac" Apple campaign remains fresh via strong writing, distinct characters and new life on Web. "Bean Counter" TV spot shows visor-wearing PC setting aside one stack of money for ads and much smaller stack for fixing Vista. Online, Mac and PC guys stand in banner space bantering as PC fails to fully switch on a "Don't Give Up on Vista" sign, getting only "Give Up." Spot for chocolate Skittles in which man oddly resembling a pinata berates co-worker for thinking hitting him with bat would produce the candy comically fits brand's young-skewing, bizarro world. "Running Late" spot for Nissan Altima set at remote test facility vividly illustrates durability, but fails to defy category conventions. Pop-up store for Pedigree deftly uses dogs, celebrities and high-profile site (Times Square) to attract 50,000 visitors and generate buzz around pet-adoption cause. Print ad for PUR water filter with hand-scrawled copy in shape of water drop conveys bottled-water alternative message in simple, down-to-earth way.

Management B+
The pace quickened in Tom Carroll's first full year as worldwide CEO. Joined PepsiCo's roster in April via Gatorade win and seven months later added brand Pepsi. Parlayed Visa domestic relationship into $525 million global account win in September. Carroll's 2007 hire of Colleen DeCourcy, worldwide chief digital officer, paid dividends in July's Adidas global digital pitch, with DeCourcy culling holding-company talent -- TBWA, Critical Mass, 180, EVB -- for win. U.S. pitch ratio, 6 of 12, dipped from '07's 6 of 10. New York office was hit with February exit of ecd Gerry Graf, whose department delivered award-winning ads for key client Mars. To fill slot, Carroll in May hired Young & Rubicam Chicago CCO Mark Figliulo as chairman/CCO, effective in June. North American president Robert LePlae wound down his decade at network, leaving in January '09.

Regional Highlights
Playa del Rey, Calif., office was central to biggest wins: Visa global account, Gatorade and Pepsi/Diet Pepsi. In June, office president Carisa Bianchi recruited Bill Brooks, a worldwide client service director at Ogilvy & Mather, to lead then U.S.-only Visa account as managing director. N.Y. president Corey Mitchell left in July to become managing director of MRM in N.Y.

Global Highlights
India got a new CEO: former Ogilvy Paris managing director Shiv Sethuraman, who started in July, and in September the network acquired the 49% of shop it didn't already own. Germany won global duties on Merck's Nasivin, Femibion, Flexagil.

Comments
L.A.'s blistering '08 propelled shop to Global Agency of the Year honors from Adweek but masked quietude of N.Y., which again is in rebuild mode. Carroll counting on mixture of new blood (Figliulo) and existing talent (Jamie Gallo, managing director made president in February '09) to boost the office.

FINAL GRADE: B




WIEDEN + KENNEDY

Numbers B
Billings up 20% to 1.09 billion. Revenue up 21% to $110 million. Won Levi's ($50 million), Nike Running, Nike+ ($50 million), Noxzema ($40 million), St. Ives ($20 million), Diageo's Tanqueray ($1 million) and Walt Disney Pictures/Pixar. Lost Starbucks ($40 million), Powerade ($15 million), Cole Haan ($15 million), Graham Webb. Third worst revenue/staff ratio prevents higher grade.

Creative A-
Uplifting Coca-Cola spot, featuring a parade balloon skirmish for a bottle of Coke, one of the best for the brand in years. Visually engaging CareerBuilder spot with a man who sees himself everywhere and gets not-so-subtle hints to make a job change has everyman appeal. Masterfully edited Nike "Courage" spot set to The Killers' "All These Things That I've Done" artfully portrays the emotion of sport with an eclectic montage of images ending with inspiring footage of double-amputee sprinter Oscar Pistorius and "Just do it" tag. Nike work overall, including football spot showing development of the athlete from womb to competition and print ads for Women's Team Training showing women doing pull-ups, strong as ever. Old Spice spot repositions classic brand to young men without dismissing loyalists with humorous ad that has men with all types of hair-from an awkward adolescent to a police officer in the middle of an arrest-asking whether the hair and body wash is right for them. ESPN comically rebrands Monday with football promotion promising a better start to the week.
 
Management B+
Creative leadership at Portland, Ore., HQ settles down with Mark Fitzloff and Susan Hoffman named co-ecds after turbulent year-and-a-half run by Steve Luker and Jelly Helm. Added TBWA Skittles art director Craig Allen and copywriter Eric Kallman on Old Spice, CareerBuilder. Following Helm's departure, cds Hal Curtis and Tyler Whisnand named co-directors of internal ad school W+K12. Agency reclaimed Nike Running and Nike+ and won late-year Noxzema, Levi's pitches.

Regional Highlights
New York office, led by managing director Buz Sawyer and co-ecds Kevin Proudfoot and Todd Waterbury, won St. Ives, Noxzema, grew Nike business with Nike Canada, and added Walt Disney Pictures/Pixar and Disney XD media planning. Continues to produce top-notch creative for ESPN, Brand Jordan.

Global Highlights
Global COO Dave Luhr leads agency to double-digit global growth with billings, revenue up 24% to $2.04 billion and $204 million, respectively, with global wins for Nokia, BASF, Tanqueray. Amsterdam office named new leadership: Jeff Kling, former ecd at Euro RSCG N.Y., returned as co-ecd with John Norman. Lee Newman joined as managing director from GSD&M. Amsterdam wins included Honda environmental marketing for Europe, Middle East, Africa and Russia; Pirelli tires; Nokia; and led global pitch for Tanqueray with N.Y. London won Nokia Nseries and produced ambitious "Supernova" campaign that utilized 24/7 content feed incorporating TV, Web and mobile. Won Honda Asia Pacific with Tokyo and lost Pizza Hut. Added cds Pat McKay and Feh Tarty from Goodby. Tokyo wins included Nikon, Honda. Shanghai added Mad Dogs co-founder Nick Cohen as ecd and won Converse China. Delhi office added P&G assignment.

Comments
For the first time in 13 years, agency added partners in '09, Tony Davidson and Kim Papworth, the ecds fueling London's success. Much anticipated now is Portland's debut effort for Levi's.

FINAL GRADE: B+




YOUNG & RUBICAM

Numbers C-
Billings up 2% to $3.87 billion, revenue up 3% to $373 million. Won Office Depot ($120 million), Cellular South ($30 million), Round Table Pizza ($20 million), Giant Eagle ($15 million), Hilton Hotels Corp.'s Doubletree ($15 million), diet duties on Dr Pepper Snapple Group brands Sunkist, A&W, Canada Dry ($10 million total), global Bacardi Gold Rum and Bacardi Flavors ($9 million in U.S.). Lost Callaway Golf ($50 million), Dr Pepper ($35 million), Diet Dr Pepper ($15 million), SunTrust ($35 million), SABMiller's Miller Chill ($25 million). Revenue from December '07 global LG win kicked in.

Creative B-
TV spot for Miller Genuine Draft documenting taxi passengers finding and returning lost cell phones deftly uses reality techniques-e.g., hidden camera-to deliver "search for genuine" message. Cellular South "Keys" spot featuring long chain of women verbally relaying a "Where are my keys?" theme and equally long male chain answering stands out visually but smacks of market leader Verizon. Cool music, strong art direction fuel "Don't Touch" spot for LG Voyager PDA, but open-mouthed reaction of guy picking up the not-so-eye-popping device seems far-fetched. Colgate "buzz avatars" dishing out smiles on Second Life successfully contemporizes the venerable brand. Sears print ad depicting skeleton made of wrenches makes mundane interesting.

Management C
Creative improved slightly, but revenue growth slowed from 7% in '07. Worldwide CEO Hamish McLennan recruited BBDO New York managing director Tom Sebok to become North American president and CEO, effective May 1. Sebok, 44, filled vacancy created by January '07 exit of Chris Jaques. Global CCO Tony Granger arrived in May, after six months "on ice" at former shop Saatchi & Saatchi. Even before he arrived, his influence was felt: in February, the agency recruited Scott Vitrone and Ian Reichenthal, a hot group cd team at TBWA\Chiat\Day New York that created irreverent work for Mars, to become co-ecds of N.Y. headquarters, effective in April.  Shop won 5 of 9 pitches (56%), losing bids for Wachovia, Outback, Levi's and McAfee. The Wachovia pitch was particularly painful because the agency threw over existing bank client SunTrust to chase a larger bank. (SunTrust subsequently reviewed its account, which shifted to Interpublic Group's Mullen.) New York-based North American CCO Gary Goldsmith exited in April, 2 1/2 years after joining the WPP Group shop.

Regional Highlights
Chicago office in May promoted ecd Ken Erke to CCO, after previous CCO Mark Figliulo left to become chairman, CCO of TBWA\C\D N.Y. In October, San Francisco named former Taxi N.Y. president John Berg president/CEO; he replaced Penny Baldwin, who left.

Global Highlights
Shop's global relationship with Danone grew, with Paris in August adding $80 million in water brands in Europe, Asia, Latin America, and in December adding customer relationship management duties for all brands in France. The CRM duties had been in-house and, as part of win, shop acquired the client's CRM division.

Comment
Looking to hasten development of digital capabilities, McLennan in January '09 forges a strategic alliance with sister digital shop VML and makes VML CEO Matt Anthony chief global digital officer for Y&R. Early '09 wins include Hotels.com ($40 million).

FINAL GRADE: C




HOW THE REPORT CARDS WORK

NUMBERS
Many 2008 revenue results were provided
by the agencies; some were not. We also gathered information from our own reporting, syndicated data and other sources. Revenue represents the actual top-line income of each agency; revenue was prorated to credit an agency for an account win only for the time it worked on the business. (An agency that won a $100 million account midyear, for instance, would only receive six months of revenue. Same goes for losses.) But agencies receive full credit for billings upon winning an account, no matter the time of year. Staff counts are as of year-end 2008. Agencies were ranked on three criteria: revenue growth, revenue per employee and growth in revenue per employee. Then a composite rank was calculated, weighting revenue growth the most, staff efficiency somewhat less and the growth in revenue per employee the least.  Adjustment was also made for growth relative to size. Letter grades correspond to the composite ranks. Client spending estimates are based on Nielsen data.

CREATIVE
Consideration is given to quality, range of products worked on, clarity of message, production values and consistency of execution. Each shop submitted seven TV spots and seven print ads, along with digital, integrated and nontraditional efforts, that appeared during 2008.

MANAGEMENT
Grades reflect how well executives handled client and management issues, agency developments, finances, merger and acquisition activity and other strategic matters.

REGIONAL HIGHLIGHTS
For national agencies, we break out significant activity in regional offices.

GLOBAL HIGHLIGHTS
For global shops, we outline key events in offices around the world.

THE FINAL GRADE
The average of numbers, creative and management grades.