AGENCY REPORT CARDS

On the following 23 pages, you'll find nearly 25,000 words critiquing the performance of 55 U.S.-based ad agencies. It is, by far, the most comprehensive profile and ranking of its kind. Our singular goal is to provide the most consistent, accurate and fair assessment of each agency while offering some insight into its strategy and standing in the marketplace. That said, we have no illusions that you'll agree with most, or even many, of our comments—unless, of course, you've received an A grade. Then, naturally, you will think we're spot-on. On the other hand, those of you who received average grades, or worse, will no doubt think we've been staring at spreadsheets far too long. Either way, for the record, this is how we go about the arduous process.First, the numbers. In 2005, our 35 nationally ranked agencies collectively posted an average revenue gain of 7.5 percent, nearly identical to 2004's 7.7 percent but down from 2003's 8.6 percent. We use that revenue gain as a jumping-off point, but we consider other financial factors, such as revenue-to-staff ratios and organic growth from existing clients. We also consider the size of the players when evaluating their gains. This is why smaller shops like The Kaplan Thaler Group (with a 38 percent gain, off a 2004 revenue base of $60 million) and Crispin Porter + Bogusky (with a gain of 54 percent, off a base of $54 million) did not receive A's in Numbers. Among the 20 regional shops, the average revenue gain in 2005 was 10.7 percent, which, remarkably, is precisely the same jump as in 2004. (That figure is up from an average 7.9 percent gain in 2003.) Taking the average into account, a regional shop posting an 11 percent gain last year would earn a C grade. We are constantly working to upgrade and improve our criteria and analysis. Two years ago, we added global highlights to the cards to reflect the growing reach of the multinationals. We also began including revenue for and remarks on marketing- services divisions, such as direct marketing and interactive, to reflect the industry's move toward integration. This year, in Creative, instead of evaluating only TV and print work, we solicited integrated campaigns and nontraditional media efforts. We will continue to broaden our definition of creative to include additional forms of content as we move ahead with the industry. As always, we look forward to your comments and, dare I say, your criticisms and suggestions.

Brand Marketing

AGENCY REPORT CARDS

Alison Fahey

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Alison Fahey