Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
Agency Holding Groups Account For Only 22% Of M&A In 2016
The marketing M&A landscape in 2016 saw the emergence of several new trends, the biggest of which was the dominance of publishers and consultants in the space. Of the agency holding companies, Dentsu and WPP led the way, with 39 and 36 acquisitions, respectively. However, holding groups only account for 22% of M&A activity last year. Publishers (looking to expand their revenue streams) snapped up marketing firms like never before, with high-profile acquisitions from the likes of the NYT, Financial Times, Vice and several others. The total deal value for 2016 rose to $14 billion, 150% higher than 2015, with players like IBM, Accenture and Deloitte all purchasing digital and creative shops.
BBDO and PHD took the top spots on our creative and media agency New Business League tables for 2016. BBDO’s recent wins include Nuelasta US, Merisant Global and Volkswagen Brazil. DDB and Ogilvy came in 2nd and 3rd, respectively. On the media table, PHD held onto the top spot off the back of their Volkswagen global win, as well as several regional European accounts. Other big movers on the table include Starcom, making their first appearance of the year in 9th place after their recent FCA win.
For the full creative and media agency tables, please click here.
Our Quarterly Wrap-Up Of The Marketing Industry Is Out Now
Our quarterly wrap-up of the marketing industry, the R3View, is out now. The biggest stories of Q4, including a 2016 wrap-up and predictions for this year, emerging M&A trends and ad spend forecasts. Also in the report is year-end creative and media New Business League report, as well as Holding Company M&A and quarterly financials, and the biggest CMO and agency people movement of the last three months.
R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.
Through our regular "AgencyScope" research, now covering more than 1,000 marketers in China, India and other markets, we are learning about true client preferences for the best local agencies in each market and helping agency holding groups form strategic partnerships with the best local agencies.