Q4/2015
View R3 is a leader in global, regional and local consulting on improving the effectiveness and efficiency of marketers and their agencies. We work with nine of the world’s top twenty marketers including Coca-Cola, Unilever, AB InBev, MasterCard, Mercedes Benz, Johnson & Johnson, Samsung and Kimberly Clark.
Welcome to the Q4 2015 R3VIEW, our regular quarterly report on the marketing communications industry. In this issue, we look at the biggest stories in the industry, the full year estimates for the holding groups, CMOs and CEOs on the move, along with the full year M&A and New Business results.
The Biggest Stories In October, the Association of National Advertisers made one of the biggest announcements of the year. It would hire two firms, one of which employs former FBI agents (a firm called K2 – no relation to us…) to investigate rebates and kickbacks in the US media and advertising sector. This issue rose to a head earlier in the year with former WPP and Mediacom CEO, Jon Mandel, claiming that this practice was common not just outside the US, but also within it. The ANA is expected to share its findings at their May 2016 Financial Conference – which should make for a fascinating reading. The so-called “Mediapalooza,” the review of 22 of the largest US and Global accounts came almost to an end, with just a few still in review at year’s end. The biggest announcement came this quarter with P&G moving its US business out of Publicis Groupe and into a new third media agency within Omnicom, with Dentsu’s Carat also winning some of the spoils. Meantime, the world’s second largest advertiser, Unilever, announced it had mostly retained WPP’s Mindshare and Omnicom’s PHD to similar markets on a global basis. For the final washout of how 7,000 accounts changed hands in 2015, check out our New Business Leagues later in this issue. A week prior to the P&G announcement, Publicis Groupe also announced a major restructure. In order to “Move away from silos” a new client-centric structure would be built under newly appointed Chief Revenue Officer, Laura Desmond – with more than twenty clients aligned to this approach.
NEW YORK 4th floor 57 W 57th Street, New York, NY T +1 646 416 8088 Taleah Mona Lusky – Senior Consultant taleah@rthree.com Mike Goodnough – Senior Consultant mike@rthree.com Talia Tay – Consultant talia@rthree.com SHANGHAI Room 4203, United Plaza, 1468 NanJing Road West T +86 21 6212 2310 Greg Paull - Principal greg@rthree.com Erin Singleton - Consultant erin@rthree.com Trace Qu - Researcher trace@rthree.com BEIJING A 1801, Chaowai SOHO, No.6 B Chaowai Street, Chaoyang District, Beijing T +86 10 5900 4733 Sabrina Lee - Managing Director sabrina@rthree.com Maria Gong - Senior Researcher mariagong@rthree.com SINGAPORE 69A Tras Street, Singapore 079008 T +65 6221 1245 ShuFen Goh - Principal shufen@rthree.com Seema Punwani - Principal Consultant seema@rthree.com Herbert Ho - Regional Business Director herbert@rthree.com
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