APAC account moves rise in value

18 January 2011

SINGAPORE: The value of new business wins picked up by creative and media agencies rose by a fifth in Asia Pacific during 2010, a study has shown.

Consultancy R3 monitored approximately 4,000 account moves last year, which were worth a collective $395m (€297m; £248m) in revenue.

This equated to a 21% improvement when compared with 2009, a trend driven by increased competition in the region, and technological imperatives.

"There was much more activity in China and India, as well as some strong growth in digital assignments," said Greg Paull, principal of R3.

"Marketers are now appointing new creative and media agencies to more diversified services than ever before."

DDB, a unit of Omnicom Group, acquired over 300 assignments, including briefs from Australian communications provider Telstra and healthcare giant Johnson & Johnson covering various countries.

It was also awarded duties by telecoms specialist Huawei and retailer AS Watson, and led the rankings in Hong Kong, India and Singapore.

Ogilvy claimed the top spot in China, a status assumed by Leo Burnett in Malaysia, the Philippines and Thailand, Y&R in Japan and BBDO in Indonesia.

PHD, another Omnicom shop, headed the media charts, having been handed high-profile accounts for Unilever in Greater China and Pepsi in Australia.

The network was pre-eminent in China, Hong Kong and Taiwan, while Mindshare took the honours in India and Thailand, as did MEC in Indonesia and the Philippines, Universal McCann in Japan and Starcom in Australia.

At the holding company level, WPP Group generated the largest new business revenues, delivering $92m in creative returns and $49.2m from its media arm, as figures climbed 34.1% to $141.2m.

Omnicom yielded a 23.8% gain and reached $104m, although the conglomerate's creative operations contributed three-quarters of this amount.

Publicis Groupe, the French corporation, enjoyed a 57.5% leap, hitting $69.8m, with a largely even split by discipline.

Interpublic's total grew 7.7% to $38m, Havas posted a 28.8% decline to $21.9m, and Aegis recorded a 27.8% drop to $19.7m.

Data sourced from R3; additional content by Warc staff