Not surprisingly, given the recession, average revenue growth across media shops in 2008 was 21 percent lower than the previous year. Surprisingly, 10 of the 14 shops graded managed to generate double-digit growth in 2008 with an average revenue gain of 11 percent. (That compares with 14 percent average growth in 2007 and 13 percent in 2006.) What's astounding is that all the agencies posted U.S. growth in 2008. The highest, at 22 percent, came from Interpublic Group's Initiative, Adweek's U.S. Media Agency of the Year, which earned the only solid A overall grade.

Top shops drove revenue with new business wins throughout the year, or from late 2007 wins that kicked in last year. (Media spending figures come from Nielsen Monitor-Plus and Adweek reports.) Revenue gains for others came from organic growth and diversified services, an increasingly important growth driver. At 2 percent, Omnicom's PHD had the worst revenue growth, hampered by troubles at client Chrysler. Carat, which lost key auto, movie studio and pharmaceutical accounts, managed to squeeze out a 5 percent revenue gain.

Seven agencies received final grades in the B range. Most of the Planning and Buying grades are in the A range, a reflection that the shops have parity with respect to those price-of-entry functions.

The Numbers grades were based on performance in several areas, the most important and heavily weighted being year-to-year revenue change. Revenue-to-staff ratio and year-to-year improvement in revenue-to-staff ratio are also factors taken into consideration. Revenue-to-staff ratio is considered a rough guide to profitability, given that the main expense of agencies is personnel. Alan Gottesman, managing director of West End Consulting, devised the formula and calculated the numbers for us.


CARAT: C

HORIZON: A-

INITIATIVE: A

MEDIACOM: A-

MEDIAEDGE:CIA: B+

MEDIAVEST: B+

MINDSHARE: B

MPG C+

OMD A-

OPTIMEDIA: B

PHD: C+

STARCOM: B+

UNIVERSAL MCCANN: B+

ZENITH: B+



CARAT

Numbers D
Billings down 3% to $7.4 billion; revenue up 5% to $336 million. Won Kohler ($60 million), Absolut ($50 million), Seagate ($30 million). Lost Hyundai/Kia ($800 million), New Line ($50 million), Spiriva ($110 million), Lifetime ($40 million), Jones Apparel ($30 million).

Planning A-
In February, communications planning team for Procter & Gamble's pet care division, led by evp Doug Ray, devised client's first branded satellite radio talk show. The multiplatform program, The Pet Hour Presented by Iams, focuses on pet health. The team created an online community where consumers learn about upcoming show lineups and interact with radio personalities and pet owners. Podcasts were distributed across 200 Web properties. ROI results included double-digit increases in brand equity measure and key purchase indicators like purchase intent and brand favorability.

Buying A-
In June, Carat partnered with Turner Broadcastng to develop a 20-episode multiplatform branded microseries, Commuter Confidential, that aired in commercial pods of Sex and the City repeats on TBS. Co-sponsored by Revlon and Match.com, the series featured a microsite where viewers could see character makeovers, watch episodes and other Revlon-related content. Ads across Turner sites drove traffic to the microsite; click-through element drove viewers to walgreens.com to buy Revlon products.

Management C
Despite ballyhooed 2007 restructuring, Carat went from bad to worse in two years. Client restructuring helped losses along (New Line), but others lost on merit. Turnover fueled turmoil. North American CEO David Verklin left in April and was replaced by U.S. CEO Sarah Fay. She named Martin Cass (who had run the P&G planning business) president of Carat U.S. in October, replacing Scott Sorokin. At parent Aegis, CEO Robert Lerwill ousted in November, replaced on interim basis by chairman John Napier. Still searching for replacement.

Comments
Rocky start to '09 with loss of $70 million Jenny Craig account. Hiring of research evp Mike Hess in February (former OMD exec) and Steven Feuling (former Yahoo vp) as first chief client development officer, in March, fortify ranks. But sale of shop still might be in future. French entrepreneur Vincent Bollore, chairman of Havas and Aegis' largest stockholder (29.7%), has been seeking control for three years. With Lerwill gone, Bollore might succeed.

FINAL GRADE: C



HORIZON

Numbers B-
Billings up 11%to $2 billion; revenue up 19% to $119 million. Won: Cadbury Adams USA ($150 million), WhiteWave Foods ($70 million), Seminole Gaming ($30 million), Ion TV ($15 million), Vivendi Entertainment ($10-25 million), Sands Casino ($10 million). Lost: ING Direct (planning, $4.5 million). Organic growth of $100 million led by Health Net, Geico, Boston Market, Boars Head, Jack in the Box, Buffalo Wild Wings.

Planning A
In February, Horizon created curious@horizon (led by svp, managing director Oliver Maletz) that combines consumer and channel insights and media creative to focus on individual brands and serve as a resource for Horizon's clients and other marketers. In May, 21-year Carat vet Tom Meyer joined curious@horizon in new position of vp, channel insights in Los Angeles. For two consecutive years (2008, 2007), Horizon won Mediaweek's Plan of the Year Award in radio, both times for NBC Universal. Last year, Horizon/NBC took product placement to new heights on radio, taking over all the inventory on a select group of stations, which were rebranded Chuck FM.
 
Buying A
Horizon's buying operation has separate divisions for each medium. Following suit in out-of-home, set up dedicated group in January and hired MediaVest alumni Jill Nickerson (2008 Mediaweek All-Star) as vp, director of the unit. The group won an Obie for A&E's Paranormal State for its "whispering wall," combining audio with visual. Was also one of the first agencies to test out-of-home audience research that uses cameras hidden behind street-level displays, for A&E's Andromeda Strain.

Management A-
Shop, run by longtime president/CEO and founder Bill Koenigsberg, continues to distinguish itself by offering customer service via separate brand teams. That's allowed Horizon to balance several rival media clients, including NBC and cable networks, and boast one of the best client-retention track records in the industry.

Comments
The largest independent media agency in the U.S. had a strong 2009 start. The shop, a contender for Activision's $200 million account, has grown its staff by 6%. Also introducing new proprietary tools: Project Compass (in development), a strategic planning tool to understand how consumers choose communications channels; and Profile, which merges TV ratings with consumer lifestyle data to produce brand rating for TV programs. In the works: a proprietary ethnographic study.

FINAL GRADE: A-



INITIATIVE

Numbers A
Billings up 12% to $11.2 billion (restated to reflect January 2008 absorption of sister shop Media First International). Revenue up 22% to $345 million. Won Hyundai/Kia ($800 million), MillerCoors ($400 million), Dr Pepper Snapple Group ($140 million). Lost CBS ($135 million), Levi's ($70 million). Organic growth led by Kao Brands (spending up 40% to $130 million), Lionsgate (up 23 percent to $230 million), Best Western (up 30% to $50 million). November CBS loss did not fully impact 2008 figures. Full impact of November MillerCoors win to be realized in 2009. Revenue percentage gain double industry average.

Planning A
Worldwide CEO Richard Beaven hired auto account veteran Fred Sattler in January to run Hyundai/Kia out of L.A. June marketing launch of Hyundai's new Genesis included multi-network/TV station buy supported by a widget offering original car content and current events tied to brand attributes like luxury. In April, developed novel plan for premiere of Lionsgate's Forbidden Kingdom that showcased trailers on Google and YouTube along with traditional media that combined to generate 50% awareness among moviegoers. Client credited campaign with helping film open No. 1 at the box office.

Buying A
U.S. president Tim Spengler hired Kris Magel in January as svp, national broadcast from Zenith Media. Magel oversaw creation and implementation of live in-program commercials for Nikon, Dockers and Quiznos. IPG shop created unit in March, Amphibian, that reports to Magel and straddles traditional and digital media. In March, Amphibian led partnership between S.C. Johnson's Ziploc storage bags and NBC's The Biggest Loser to create network's first sponsored widget that let users track their weight loss and get fitness tips.

Management A
Initiative enjoyed a stellar year in its 14-year history, a feat that garnered it Adweek's 2008 U.S. Media Agency of the Year honors. N.A. Beaven promoted to Initiative Worldwide CEO in January by Initiative Worldwide CEO Alec Gerster, who retired. In February, Beaven -- Mediaweek's Executive of the Year -- promoted chief activation officer Spengler to U.S. president. CBS followed exec Alan Cohen to OMD.

Comments
Dedication to transform agency from a savvy buyer to planner too paid off. But, agency with best 2008 revenue gain challenged out of the gate as Home Depot put its $580 million media assignment in review in January.

FINAL GRADE: A



MEDIACOM

Numbers B
Billings up 12% to $7.6 billion. Revenue up 17% to $276 million. Won: Discover Financial Services ($85 million), New Line Cinema ($50 million), Lifetime Television ($40 million). Lost: Eli Lilly (planning, $250 million), Playtex ($60 million), Orbitz ($60 million). Full impact of December 2007 Dell win ($340 million) and GlaxoSmithKline consolidation (planning, $1 billion) realized in 2008.

Planning A-
In March, managing partner Larry Swyer and his team devised a banner plan to sell Subway's $5 foot long. Turned campaign into an event on high-impact media channels and programs including NCAA Men's Basketball Tournament, Nascar and branded integrations across cable networks like MTV. Results: campaign drove double-digit sales increases.

Buying A-
In November, senior partner Kathleen Quinn led creation an 80-hour office-themed Web series called Working Lunch to promote ConAgra's Healthy Choice Fresh Mixers line of microwavable pastas to frugal-minded brown baggers. Webisodes were displayed on a dedicated MSN channel that also featured articles lampooning cubicle culture and coupons for the Fresh Mixers. In four months, the campaign led to a 50% market share over category leader Hormel. In June, JetBlue group account director Michael Levy oversaw experiential "JetVegas" campaign, described by a blogger participant as a "boozy whirlwind" junket to Sin City designed to expand customer base beyond core loyalists. Result: Delivered over 52 million PR and media impressions in 30+ media outlets.

Management A-
Three years ago, with no wins or revenue growth, this GroupM shop was reeling from the loss of accounts like Kmart ($200 million) and Danone ($75 million). Under the team of Doug Checkeris, who was promoted to North American CEO in October, and U.S. president Barbara Cipolla, shop has enjoyed consecutive years of double-digit revenue growth. In November, unveiled a major reorganization that included integration of digital throughout the shop's offering and realignment of clients into five core clusters, each overseen by an executive committee member.

Comments
Last month, shop capped its digital integration by rebranding Beyond Interaction MediaCom Interaction. Now it must stave off competitors pitching its $185 million LVMH media account, now in review.

FINAL GRADE: A-



MEDIAEDGE:CIA

Numbers C+
Billings up 14% to $10.4 billion. Revenue up 13% to $414 million. Won: Novartis ($300 million), Playtex ($60 million) without reviews. Lost: TD Ameritrade ($145 million), Dr Pepper Snapple Group ($140 million), Cadbury Adams ($120 million), Collective Brands ($95 million). Impact of two wins in late 2007, including $2.4 billion AT&T consolidation (two-thirds of which was new business) and $160 million Monster.com, awarded in September, offset those losses.

Planning A-
In February launched a new consumer survey tool-overseen by Gerard Broussard, managing partner for strategic insights and analytics for MEC's MediaLab-called Bottleneck, designed to identify barriers to consideration and purchase of client products and services. A March survey for Monster.com, for example, found many job seekers believed the site was difficult to navigate and had concerns about the security of posting resumes there. Findings in part motivated the client to redesign its Web site.

Buying A
In December, Chet Fenster, managing partner of MEC Entertainment, and his team oversaw the production of an elaborate, one-hour animated program for Macy's called Little Spirit: Christmas in New York. The program drew an audience of 5 million on NBC, making it the top network show among kids. In September, the shop orchestrated the launch of a 10-part multiplatform viral Web series, Easy to Assemble, for Ikea. Featuring actors such as Jeff Goldblum and Justine Bateman, the series streamed to 500 Web sites, CBS Mobile and five airlines, garnering 800,000 views and 2,000 blog mentions. Also in September, promoted Gibbs Haljun to managing partner, director of investment.
 
Management B+
In 2008, MEC North American CEO Lee Doyle and his team focused on absorbing account wins from previous year, most notably the $2.4 billion AT&T business. Shop also focused on nurturing relatively new event/sponsorship unit, MEC Access, which grew more than 20% in revenue and now is estimated to be a $50 million business. Shopper marketing specialist MEC Retail (headed by managing partner David Sommer) won Mars shopper marketing business, outdueling client's media AOR MediaVest in a formal review.

Comments
After a year of focusing internally, this GroupM shop smartly ended its moratorium on pitching new business. On the table: Activision's $200 million prize.

FINAL GRADE: B+



MEDIAVEST

Numbers B-
Billings up 3% to $10.8 billion. Revenue up 12% to $465 million. Won: Schering-Plough media planning ($225 million Levitra, Nasonex and NuvaRing), general market planning, and digital buying and planning for TracFone ($35 million), planning and buying for TD Ameritrade ($30 million), digital assignments from Comcast, Heineken. No losses. Above average growth off of third-largest revenue base lifts grade.

Planning A-
Fully implemented Truth and Design planning strategy, encompassing use of proprietary tools and software built for analyzing campaign data, identifying marketing trends and generating new ideas. Partnered with Yahoo to launch original branded-entertainment Web video series for P&G dubbed The Thread. The celebrity-and fashion-themed work showcased six different P&G brands during specifically timed episodes, while also carrying pre-roll and banner ads. Conducted ground-breaking research on the effectiveness of Web video overlay ads. In conjunction with Google, study tracked respondents' reactions to ads by measuring factors like brain response and pupil dilation. Research group learned more about the effectiveness of ads on sales by fusing shopping data and set-top box viewership data through a partnership with TRAnalytics.

Buying A-
Publicis shop had its first cinema upfront and shifted millions of TV dollars into movie advertising. Inked first upfront deal with Fox One, News Corp.'s cross-platform division, for Activision Blizzard. Deal encompassed 12 different Fox properties, ranging from prime-time and NFL games to South Park and Hulu. Company founded a new Shopper Marketing Practice with Wal-Mart. The result: creation of the Walmart Smart Network, which consists of 27,000 screens in 2,700 stores for brands to advertise to shoppers.

Management A-
U.S. CEO Bill Tucker, in his second year at the helm, posted third-best revenue gain in overall dollars ($50 million). Plus, for the second straight year, agency experienced no client defections. Among noteworthy hires: Tim Castree joined from Leo Burnett Sydney to head up Mars and Wendy's as managing director; Joe Warren became group client director for Kraft N.A. business; Allison Barnes was tapped as group client director and deputy managing director at MediaVest L.A.

Comments
Shop's client retention streak is now being tested -- earlier this month Activision put its $200 million media account into review.

FINAL GRADE: B+



MINDSHARE

Numbers C
Billings flat at $8.7 billion (restated to  exclude Maxus billings). Revenue up 8% to $350 million. Won Estée Lauder ($165 million), American Family Insurance ($90 million), John Deere ($12 million), Blue Cross Blue Shield ($10 million). Lost Novartis ($300 million). Impact of Novartis loss, which shifted to sister shop Mediaedge:cia without a review in August, not fully felt in 2008. Best revenue/staff ratio improvement lifts grade.

Planning A-
Tata Sato, head of research, unveiled a revealing study about American mothers that flagged commercial skipping as a bigger problem than previously thought. (91% don't watch ads on taped shows). More than half (56%) identified late evening as their downtime and top "me time" activities as reading, Web surfing and watching TV. Shop's research convinced one major packaged-goods client to explore more digital applications, including interactive and mobile components.

Buying A
In May, WPP shop finalized unprecedented deal with ABC to bring branded-content Web comedy series In the Motherhood, developed by Mindshare Invention co-head David Lang and team at Mindshare Entertainment, to the network's prime-time lineup. Like the Web version, TV show features branded integrations for Unilever and Sprint. It's the first branded-content Web series to be adapted for network TV. In November, developed four-episode multiplatform (TV, online, mobile) Web series spin-off of NBC's Heroes called Heroes: Destiny. The new twist: viewers get to shape a new Heroes character through votes.

Management B
In April, North American CEO Scott Neslund led an overhaul around core units (client leadership; business planning; invention and implementation) to better execute client strategies. In July, GroupM chief investment officer Rino Scanzoni led Mindshare and sister shops Mediaedge:cia and MediaCom in forging the first agreements with ABC, CBS and NBC to phase out integration fees, relics from the past when commercials had to be inserted manually into programs. Fees added $125 million annually to advertisers' bills, and the industry complained fees were unjustified now since ad insertion is now automated. Kudos to Scanzoni for taking the industry lead.

Comments
Neslund spent tons of time in '08 reorganizing shop for the future. So far, clients seem happy. A huge test is on the horizon as Mindshare now contends for the $580 million Home Depot media business.

FINAL GRADE: B



MPG

Numbers D
Billings up 14% to $3.2 billion. Revenue up 7% to $150 million. (Restated to include only U.S. figures.) Won: Adams Respiratory (planning and buying, $120 million) for brands including Mucinex. Also, Spiriva ($110 million, shared with RJ Palmer), Carnival Cruise Lines ($75 million), Jones Apparel Group ($30 million, for Nine West, Anne Klein). Lost: Citizens Financial Group ($25 million), Celebrity Cruises ($20 million). Organic growth ($360 million), mostly from Boehringer and Reckitt Benckiser, outpaced cuts ($140 million), mostly from Sears.

Planning B+
Steve Lanzano, COO, MPG U.S., oversaw the November formation of Chrysalis, MPG's new digital out-of-home unit headed by Connie Garrido; it aims to secure a chunk of that growing business. (Shop used to outsource most OOH planning and buying, and spent less than in any other media). Ed Montes, evp, managing director of Media Contacts, imported Mobext in Q1 from parent Havas' European and Latin American operations to enhance mobile-advertising business, offer messaging apps, consulting, WAP advertising and mobile video. Amtrak plan that hit travelers at moments of greatest frustration resulted in an 11% spike in ridership and a 14% surge in revenue for the client.

Buying A-
Digital arm Media Contacts struck a multi-year ad partnership with Yahoo in June that set up a proprietary media-trading platform based on Yahoo technology. Comfort Inn targeted younger travelers with its "Awkward Moments" campaign, which used NBC programming clips from The Office, My Name Is Earl and 30 Rock as seen on NBC.com, generating over $2.5 million in bookings.

Management C-
Change abounds under Francoli. MPG U.S. CEO Charlie Rutman replaced by Shaun Holliday, who was hired in November and assumed role in January '09. (Rutman remains a senior advisor.) Mitch Oscar was hired by Lanzano as evp of televisual applications in June. His tech-oriented roundtable discussions led MPG to launch Chrysalis. New managing director Serge Del Grosso helms the Sears business.

Comments
Domestic performance thriving under Holliday. Won Virgin Mobile business ($15 million) in January, and defeated OMD for CBS Films ($100 million, planning and buying) in February. Plans under way to import Cake, a branded-entertainment, events and PR agency, and the partner who runs the business, Adrian Pettett, from London.

FINAL GRADE: C+



OMD

Numbers B
Billings up 12% to $13.1 billion; revenue up 11% to $608 million. Won Eli Lilly (planning, $250 million), CBS/Showtime ($135 million), Time Warner Cable ($130 million), Intel ($100 million), Levi's and Callaway ($50 million each), VTech ($35 million). Lost Bank of America ($250 million), Schering-Plough ($75 million). Bounty from Q4 TWC, CBS, Levi's wins won't hit until 2009. Largest revenue base of all 14 shops, plus best gain in revenue/staff ratio lifts grade.
 
Planning A
Introduced new business intelligence dashboard system in March allowing planners to easily manipulate client data and quickly adjust media/marketing plans. Overseen by BI global director Tony LoFrumento, its principal architect, the system helped attract clients (Intel) and defend accounts (Visa). In June digital group director Mike Solomon and team launched a plan to "refresh" the Big Mac. MySpace, MTV, YouTube and others were enlisted for the "Big Mac Chant-Off" contest where consumers were invited to remake the Big Mac "two all-beef patties, special sauce..." jingle. The result: a record-breaking sales spike for Big Mac.

Buying A
In March, N.A. CEO Page Thompson promoted Chris Geraci to managing director, national TV investment after Debbie Richman left. In June, shop unveiled Ignition Factory, the brainchild of U.S. CEO Alan Cohen. Unit develops new applications and executions for emerging and traditional media. One example: a Nissan-focused Xbox 360 game tied to the launch of the Sentra SE-R. Results: 44 million game sessions with average 66 minutes of Nissan-branded engagement that generated a fourfold increase in traffic to Nissan's Web site.

Management A
Thompson hired Cohen from Initiative in April and his team went four for four in new business contests (Time Warner Cable, Callaway, McAfee and Levi's), secured CBS/Showtime without a review and successfully defended Henkel/Dial ($60 million). Thompson was elevated to N.A. CEO, Omnicom Media Group, a new post, in December. To jump-start Ignition Factory, OMD hired Jonathan Haber, Cohen's colleague at Initiative. Shop awarded Adweek's 2008 Global Media Agency of the Year honors for adding critical new capabilities and garnering over $3 billion in new business.

Comments
Can OMD hang on to its momentum? Omnicom shop missed a chance last month when it lost to MPG in the finals of $100 million CBS Films pitch. Now it has another chance in the $200 Activision contest. Stay tuned.

FINAL GRADE: A-



OPTIMEDIA

Numbers C-
Billings up 9% to $2.4 billion. Revenue up 10% to $187 million. Won: Payless ShoeSource/Stride Rite ($90 million), Citigroup (communications planning, $200 million), Rhapsody ($60 million). No Losses. Organic growth led by Whirlpool (up 50% to $90 million), Qantas (up 115% to $14 million). Sanofi-Aventis' Ambien decreased spending by 25% to $155 million.

Planning A-
In February, launched Optimedia Inside to integrate communications planning within parent shop's broader offering. The unit -- run by managing partner Paul Hindle, who joined in January -- is credited by management for having landed the Citigroup communications planning business in August. In February, Greg Kahn, director of strategic resources, oversaw creation of trendspotting and insights service Outlookers that taps college students through the Ning social-networking platform.

Buying A-
In March, Kahn developed shop's Content Power Ratings system, designed to create a new TV currency by melding TV, Web and online-video ratings, public relations and buzz. Tool was used by the buying department for holistic multiplatform buys. In January, the buying team developed an online branded-content video series for T-Mobile Sidekick called Connected across the MTV  digital network that delivered 700,000 streams and helped move 250,000 Sidekicks (as part of an integrated effort). A multiplatform effort endorsed by Martha Stewart helped position Whirlpool as a green choice for consumers and delivered incremental sales relative to media spend of 6 to 1.

Management B-
Now in his third year as CEO, Antony Young continues to remake the shop into a communications planning-centric specialist. Besides hiring Hindle, he's focused energy on growing digital billings; digital now accounts for one-third of revenue and 23% of billings, under the guidance of Andrea Kerr Redniss, the unit's managing director. Departures include Ellen Drury, who headed the local broadcast group, replaced by Tiffany Kirk.

Comments
Second year of no client losses an enviable record. Off to a strong start in '09, having brokered deal for Denny's first Super Bowl spot that capitalized on the mood of recession-weary Americans with free breakfast offer. Client estimates  the ad generated $50 million in free publicity and increased traffic to restaurants. In February, picked up planning and buying for $8.5 million YSL Beauté account.

FINAL GRADE: B



PHD

Numbers C-
Billings down 6% to $5.9 billion. Revenue up 2% to $334 million. Won 21st.com ($75 million), Enbrel ($75 million), Hyatt ($30 million), Vestas ($16 million), a piece of Harrah's ($75 million). Organic growth via Discovery (up 19% to $70 million), American Legacy Foundation (up 58% to $55 million). Chrysler cut media spend by $400 million. Best revenue/staff ratio prevents lower grade.

Planning B
Top media planning post still empty since managing partner Peter Mears left New York in July to run global client services from London. (Successor is imminent.) Account planning grew under svp Ed Castillo. The "Ex" anti-smoking effort for American Legacy (16% conversion rate online) tailored messaging to reach smokers during "trigger" periods through a variety of media. Reinvigorated New Balance via more emotional connection with runners and deeper link with younger consumers (6% lift in market share in sporting goods stores). The multi-platform clutter-busting effort to support HBO's new vampire drama True Blood included launch of consumer product, beverage Tru Blood.

Buying B
Veterans John Swift, evp, managing partner, activation, and Harry Keeshan, evp, national broadcast, steady at the helm. American Legacy on Disney/ABC Unlimited, included six platforms, 25 properties and talent-driven vignettes on ABC programs, and NFL and Nascar tie-ins. Multifaceted Q4 buy of Fox's Terminator: The Sarah Connor Chronicles for Chrysler's Dodge delivered.

Management C
With a digital and analytics background, Scott Hagedorn moved into the top job from sister Omnicom shop OMD in December, six months after former president and CEO Matt Seiler exited in July to run Universal McCann. Lost more top talent as Jen Neal, evp, managing partner, left by year's end.

Comments
Shifted from Seiler's expansive and experimental client-services approach to Hagedorn's analytic-and strategy-led culture. Gaps being filled as Lance Neuhauser named head of U.S. digital. But, staff slashed by 15% in February courtesy of Chrysler cuts. Currently defending $80 million Discovery account. Troubles at biggest client Chrysler remain chief concern.

FINAL GRADE: C+



STARCOM

Numbers C+
Billings up 6.7% to $11.3 billion. Revenue up 10% to $506 million. Won Bank of America ($400 million), Jim Beam ($30 million), International Sleep Products Association ($20 million) and DeVry University ($10 million). Lost  buying and planning for GM regional-dealer business ($400 million), Discover Card ($85 million) and Kohler ($60 million). MillerCoors loss ($400 million) in late November not fully felt in '08. Second-largest revenue base and solid revenue/staff ratio lifts grade.

Planning A-
In January, Starcom played leading role in the inaugural The Pool, a think-tank designed to seed new ad models, bringing together clients like Allstate and Capital One with big brains from a host of media companies and content distributors (CBS Interactive, Discovery Communications, Hulu.com, Microsoft Advertising, AOL's Platform-A and Yahoo!). Initial focus is online video, with future efforts to touch on advanced TV, mobile and social networking. Agency continues to lead the charge on the research front, producing studies like last winter's "Natural Born Clickers," which illustrated that 6% of online users account for 50% of all display-ad clicks.

Buying A
Billetts America in December named Starcom the top buyer, in terms of advantageous pod positioning. According to the auditor, 31% of the $786 million in network spots acquired by the agency for its clients ran in the most desirable real estate (either the first or last position). With Comcast Spotlight, agency expanded an addressable-TV advertising trial in Baltimore last fall, a push that demonstrated that homes receiving targeted ads were 38% less likely to tune out. This summer, Starcom will also play a part in Cablevision's newly announced addressability test of 500,000 NYC HHs.

Management B+
CEO John Muszynski continues to be one of the industry's leading proponents of innovation. Agency is looking to cut more upfront deals based on exact-minute and second-by-second viewing data, rather than average-commercial minutes. Realigned digital assets in June under VivaKi banner in part to have greater latitude to make strategic decisions on consumer contact and planning options.

Comments
Financial meltdown is tearing into the banking business. Meanwhile, Procter & Gamble insists it will maintain its media spend and BoA is hanging in there. Time will tell.

FINAL GRADE: B+



UNIVERSAL MCCANN

Numbers B-
Billings up 11% to $7.1 billion. Revenue up 17% to $172 million. Won: Cargill ($22 million), Aldi ($17 million), BASF ($9 million), Barrier Therapeutic ($1 million). Lost: Intel ($32 million), Sun-Maid ($5 million). Poor revenue/staff ratio brings grade down.

Planning B+
Helped Kohl's build credibility with teens by launching virtual shopping center for Abbey Dawn celebrity clothing line on Stardoll.com in July. Visitors "tried on" more than 31 million virtual clothing items and made 2.3 million virtual purchases. Its first teen clothing line to sell out at brick-and-mortar stores.

Buying A
Generated widespread media coverage and awareness for UPS at Beijing Olympic Games in June with campaign that involved putting huge delivery boxes in high-traffic places for maximum visibility. Boxes were opened to reveal sporting equipment. For Verizon, company put all buying power behind Storm for three days, its first total media roadblock for a single product. The strategy led to epic-size product launch (TV, newspaper, online) that resulted in stores selling out of the first touch-screen BlackBerry and the ultimate sale of more than 1 million units.

Management A-
Worldwide CEO Matt Seiler moved fast to revamp top management team and overhaul training and hiring practices to keep staffers thinking fresh. (Seiler, a former PHD exec, replaced Nick Brien, who became president, CEO of Mediabrands, the IPG management arm whose oversight includes McCann.) Seiler restructured U.S. leadership by appointing new members to global management team, including managing partner lead Jan Boyle, CMO Scott Tegethoff and research director Huw Griffiths. Introduced new brand positioning statement, "Curious minds for surprising results." Settled two-and-a-half-year legal fight with George Hayes, the agency's former evp, client services, stemming from his age-discrimination claim.

Comments
Element of Johnson's baby-care products effort in Canada such a hit it's coming to America. Vignettes about mothers and babies featuring products in The Mom Show will soon appear on BabyCenters, J&J's e-commerce site. Took industry lead in February by brokering Absolut buy that broke voluntary spirits ban on broadcast TV. Eyes are now on new business as shop battles to defend its Nationwide insurance media account ($185 million) and pitches BMW national media duties ($200 million.) Game on.

FINAL GRADE: B+



ZENITH MEDIA

Numbers C+
Billings up 6% to $9.4 billion; revenue up 12% to $429 million. Won: Harrah's Entertainment ($120 million), Ubisoft ($50 million), NuvaRing ($40 million), LongHorn Steakhouse/Capital Grille ($25 million), Emirates Airline ($20 million). Only loss: Jim Beam Brands ($15 million). Organic growth led by General Mills (up 20% to $870 million).

Planning A-
In March, launched integrated media plan to revive Nestlé's flagging Nesquik chocolate drink mix that embraced out-of-home venues like subway media, TV and digital (user-generated content contest and dedicated YouTube channel). Results: brand experienced second quarter 1.5% market share gain in U.S. In February, launched planning service Liquid -- headed by evp Rob Jayson -- to solve client consumer trend and insight issues.

Buying A-
In April, shifted broadcast president Peggy Green to vice chairman, Zenith Media USA, to develop long-term strategy for shop's video investments and marketplace approach.  Simultaneously, elevated Ava Jordhamo to evp, director, national broadcast, overseeing day-to-day national broadcast operation. In January, launched the Cheerios Challenge multiplatform campaign to boost General Mills' cereal brand by linking product to good cholesterol health. TV, print, mobile and microsite Cheerios Challenge.com were enlisted. Results: 341 million e-coupons printed helped generate 18% sales growth.

Management B+
Zenith, led by North America CEO Tim Jones, achieved fifth straight year of double-digit revenue growth in 2008, albeit half of 2007's 24%. Jones et al. enhanced core offerings, pleasing clients who stayed put. In January, launched infomercial division, headed by svp and director of long-form marketing Stacey Kaufman. With business from Abbott Labs, HP and others, unit helped drive a 15% revenue gain at Zenith Direct. In past three years, Zenith has not lost a client with billings of more than $15 million.

Comments
That streak ended in February when HP, with U.S. spending of $175 million, shifted its global media business to Omnicom Media Group following a review. The Publicis Groupe agency could offset that loss if it wins the current contest for Home Depot's $580 million media assignment. It's January snare of Jenny Craig's $70 million account is a start.

FINAL GRADE: B+