CREATIVE AGENCIES – UNDER FIRE · 2019-07-09 · the digital production arms for the larger...

1Spot On · Creative Agencies · 1st edition 2018

CREATIVE AGENCIESSPOT ON

CREATIVE AGENCIES – UNDER FIREBackground

Prior to the mid-1980s, most creative agencies were “full-service” in their offerings. They crafted strategies; created advertising for traditional media channels — television, print, radio and out-of-home, planned and purchased media for the ads, engaged in promotional activity and delivered a range of other services. Differentiation was largely based on size, geography and vertical market expertise. There were global networks such as J. Walter Thompson, McCann Erickson and Saatchi & Saatchi, as well as regional, national and local agencies.

1986 marked a turning point. The Omnicom Group was formed with the merger of BBDO, Doyle Dane Bernbach and Needham Harper; Saatchi & Saatchi acquired Backer & Spielvogel, Dancer Fitzgerald Sample and Ted Bates; and Martin Sorrell founded WPP. The following year, WPP acquired J. Walter Thompson, Hill & Knowlton (PR) and MRB (market research). Thus began the rise of agency holding companies and the massive consolidation of the advertising and marketing services industry.

John Kaiser, Oaklins' creative agencies specialist, is pleased to share some industry perspectives in this edition of Spot On.

Few industries have been transformed more than advertising. Agencies have evolved, new participants have entered the ecosystem and practices have been

upended. With technological innovations, the industry is in a state of evolution, with the value of creative ideas and the power of data the only constants. As the first newsletter about creative agencies, this will provi-de historical perspective, the general landscape of the industry, some current trends challenging agencies and M&A activity.



Creative agencies – under fire

Agency structures

Driven by economic considerations, and quite possibly the prices paid for agencies, clients in the late 1980s began moving from the traditional commission method of compensation to only paying agencies for the services they desired. As a result, large agencies “unbundled” services, which gave rise to specialist agencies instead of in-house departments. Media planning and buying agencies were launched, as were agencies focused on promotional activity, public relations and other marketing disciplines.

The unbundling of services was most pronounced within the holding companies. The services were spun out of individual agencies and consolidated by the holding companies. For example, GroupM is the parent of WPP’s media agencies. It is the largest media services group, with more than 30,000 employees in 81 countries. GroupM is responsible for over US$100 billion in media billings globally.

While the holding companies have creative, media and a range of specialist agencies, the larger, independently owned agencies retained, for the most part, a full-service orientation, with all skills under one roof. The holding companies have full-service agencies; however, they tend to be in small to mid- size or less-developed advertising markets.

To a degree, the agency holding companies recently reversed unbundling practices for some of their larger global clients. They formed client-specific agency groups with personnel and resources from other agencies within the holding company. WPP initially launched Team Detroit for its Ford client and now has such units for most, if not all, of its global clients. All the holding companies offer such tailor-made agencies.

Digital agencies

The adoption of the internet in the 1990s gave rise to a new group — digital agencies. These agencies built websites, developed banner ads and often served as the digital production arms for the larger traditional agencies. Further, the constant introduction of internet platforms was followed by agencies designed to help clients capitalize on emerging opportunities. With email came email marketing and lead generation agencies.As search became mainstream, SEO (search engine optimization) and SEM (search engine marketing) agencies proliferated, social networking sites spawned social marketing and influencer agencies, and the smartphone facilitated mobile agencies.

The internet changed businesses, marketing practices and the way people communicate. It put individuals in control and gave everyone a voice. It transformed marketing, at least a portion of it, from pushing out ads in a disruptive manner on traditional channels to creating online experiences to engage audiences and spark conversations. The internet also allowed agencies to track online activity, collect user data, target ads based on the interests, behavior and location of the user, and gain a better understanding of the ROI (return on investment) of ad spending.

The internet changed businesses, marketing practices and the way people communicate

Large agencies “unbundled” services, which gave rise to specialist agencies instead of in-house departments



Agency landscape

The five agency holding companies sit on top of the industry pyramid. They are publicly traded global

organizations, generating between US$8 billion and US$22 billion in revenue annually.

Positioned immediately below the holding companies are other agency groups. Similar to the holding companies, these groups are typically international in scope and have multiple agency brands under the corporate umbrella. Some of the key players are Havas, Hakuhodo, MDC Partners and Blue Focus. In the context of an M&A transaction, these agency groups offer an alternative to the agency holding companies

and a proposition appealing to many entrepreneurial owners, since acquired agencies are often able to retain their identity and a degree of independence post-transaction. Following the agency groups are international agency networks, independent agencies, and a sizeable and diverse group of specialist firms. The latter are defined by a focus on a specific industry, audience segment or capability.

Agency holding company revenue

Company 2017 revenue (US$bn) 2017 EBITDA (US$bn) EBITDA margin %

WPP 21.581 3.337 15.5

Omnicom 15.274 2.342 15.3

Publicis 11.941 2.201 18.4

Dentsu 8.678 1.803 20.8

Interpublic 7.882 1.131 14.3

Source: S&P Capital IQ

Agency holding companies

Agency groups

International networks

Independent agencies

Specialist agencies

GamingInfluencer

AR/VR

MobileDesign

Social

Multi-CulturalDirect Response

HealthcareDigital

Experiential

Lead Gen.

Search

CRM

Shopper Marketing



New agencies

There is a long tradition in advertising of new agencies being launched. The classic scenario is a creative director, or two, plus an account manager leaving a large agency for greater independence. They will often start with a client with whom they have a relationship.

There are also instances of larger organizations or financial firms backing the creation of a new agency venture. A few examples include:

● kyu — In 2014, Hakuhodo launched the kyu collective. Led by a former Omnicom vice chairman, kyu has acquired seven firms spanning consulting, creativity and design. Included are Red Peak, SYPartners, Digital Kitchen, Sid Lee, C2 and BEworks. The company also took a minority stake in the design firm Ideo.

● Stagwell Group — In 2015, Mark Penn, a former political advisor and strategist at Microsoft, launched the Stagwell Group to build a portfolio of marketing services companies. In two years, the Group has made 16 acquisitions, including SKDK Knickerbocker, Code & Theory, PMX, National Research Group, Forward3D and the entertainment marketing division of CAA.

● Sandbox — In 2016, four agencies in the US and Canada with different specialties (GA Communications, McCormick, Underline and One Advertising) came together to form a new integrated and collaborative marketing agency. They adopted one name and have made subsequent acquisitions to build scale and capabilities.

Spot On · Creative Agencies · 1st edition 2018 4


Ad spending worldwide by region (US$bn)


Source: eMarketer and MAGNA Global (2018)

Ad media spending

The vitality of the industry is driven by marketers’ willingness to make media investments in support of brands. While procurement departments have forced agencies to do more with less, there tends to be a correlation between increased media spending and agency growth.

During the past five years, there have been consistent annual increases in total ad spending worldwide and in

each region. In 2017, global spending reached US$561 billion, with North America accounting for 37.8%, Asia Pacific 31.4% and Western Europe 17.8%. Forecasts for 2018 call for a 5% spending increase worldwide, with gains of 5% in North America, 6% in Asia Pacific and 3% in Western Europe. Latin America, which ranks fourth in ad spending, is forecast to have the highest growth at 11%.

2018E

2017

2016

2015

2014

0 100 200 300 400 500 600

29

31

33

35

39

93

95

98

100

103

147

158

166

176

186

185

193

207

212

222

North America Asia Pacific Western Europe Latin America Middle East & Africa Central & Eastern Europe

14

14

14

14

15

21

22

23

24

25 590

561

541

513

489



Digital ad spending

While there have been modest annual increases (4%–5%) in total ad spending worldwide, most traditional media channels are experiencing declines. Television is the one traditional medium that has been able to retain marketers’ interest because it can generate mass reach and convey a quality image for a brand. Print — both magazines and newspapers — has been in a downward spiral.

Growth in the industry has been driven by ad spending on the internet. In 2017, worldwide digital ad spending reached US$209 billion and surpassed television spending, US$178 billion, for the first time. Forecasts call for digital ad spending to increase 13% in 2018 and account for 50% of all advertising within two years.

As can be seen in the following graph, spending on the internet started slowly. Early on, there were uninspired ad units and marketplace inefficiencies. With small audiences and low unit prices, it was operationally challenging for an agency media group to plan and buy digital advertising, and certainly less profitable than managing traditional media buys with broader reach and higher price points. The introduction of ad networks and subsequently ad exchanges, agency trading desks and demand- and supply-side platforms brought efficiencies through real-time and programmatic buying and selling, along with better audience targeting.

Annual worldwide ad spend by medium (US$bn)

Source: Recode (2017), Zenith (2017)

0

50

100

150

200

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300

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Television Newspapers Internet



Despite recent concerns with transparency, ad blocking and fraudulent reporting, digital spending is expected to grow at more than double the pace of the ad industry overall as investments continue to flow to social, mobile and video platforms.

It should be noted that there are differences in digital ad spending by region. Asia Pacific is the most developed area, with digital accounting for 49% of total ad spending, while the Middle East & Africa region is the least developed, at slightly below 20%.

Just as digital is responsible for increases in overall ad spending, mobile is responsible for the growth in digital spending. In fact, mobile is the main driver of industry spending worldwide. In 2018, businesses are expected to spend nearly US$150 billion on mobile advertising, an increase of 27% vs 2017. Mobile currently accounts for over 60% of digital spending, and in two to three years, mobile will represent about 40% of all ad spending globally.

The perception of many marketers is that much of their engagement with customers is through digital channels. As such, they are becoming digital first in their marketing spending. Any creative agency without skills in digital — and particularly without mobile as part of its arsenal — will be less valuable to clients and less interesting to potential acquirors.

Digital spending share of total ad spending

Source: MAGNA Global (Dec 2017)

42%

43%41%

49%

24%18%

2018E

2017

2016

2015

2014

0 100 200 300 400 500 600

29

31

33

35

39

93

95

98

100

103

147

158

166

176

186

185

193

207

212

222

North America Asia Pacific Western Europe Latin America Middle East & Africa Central & Eastern Europe

14

14

14

14

15

21

22

23

24

25 590

561

541

513

489



M&A

The agency holding companies have been at the forefront of acquiring creative agencies for the past 30 years, and WPP has been the perennial leader. It was WPP’s pursuit of acquisitions that enabled the holding company to overtake Omnicom in size in 2008. Since 2010, WPP has accounted for 35%

or 230 of the 648 acquisitions of agencies by the five holding companies. While WPP has been the most acquisitive, claims for the largest deals go to Dentsu and Publicis. In 2013, Dentsu acquired Aegis for US$5 billion, and in 2015, Publicis acquired Sapient for US$3.7 billion.

Most agency transactions by the holding companies during the past eight to ten years have been for digital agencies. In lockstep with ad spending trends, agencies with a primary focus on traditional advertising became less appealing, whereas acquisition interest in agencies focused on website development, display ads, social media, mobile apps and other ways to engage audiences through the internet increased. While traditional agencies as a category declined, those with exceptional creative talent continued to be sought after.

Once a digital agency was acquired by a holding company, it could a) continue to operate as a standalone if it had size and a breadth of capabilities, b) be integrated into an existing traditional agency network to create an integrated omnichannel offering or c) merge with other smaller digital agencies to form a digital agency network. The integrated agency model brought together traditional agencies, known for strengths in strategy and storytelling, with digital agencies, recognized for abilities to extend stories to experiences and interactivity.

Agency-related transactions by holding companies


0

20

40

60

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120

2010 2011 2012 2013 2014 2015 2016 2017

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9

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WPP Dentsu Publicis Omnicom Interpublic

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Recently there has been a fall-off in holding company acquisitions of agencies. In 2017, agency acquisitions by the five holding companies were down nearly 60% compared to 2011. The one exception is Dentsu; it maintained or accelerated activity, particularly in 2015 and 2016. The overall decline in holding company acquisitions is attributable to buying competition from the agency groups and companies from other industries, higher marketplace valuations, client pressures which lowered margins and a slight shift in acquisition priorities.

With the growing importance of data-driven marketing and the proliferation of new digital tools, the holding companies have placed greater emphasis recently on acquiring digital services. This includes data, analytics, behavioral targeting, VR/AR and software platforms. In 2017, about 50% of the total acquisitions made by the holding companies were for digital services compared to 30–40% earlier in the decade.

Dentsu’s majority stake in Merkle — a data, CRM and performance marketing company — in late 2016, at a valuation of US$1.5 billion, is an example of the holding company enhancing its digital services through

acquisitions. Another example is WPP’s acquisition of Triad Retail Media, which helps retailers sell ads on their e-commerce websites, for US$300 million, also in late 2016.

Agency vs total acquisitions by agency holding companies

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20

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80

100

120

140

160

180

200

2010 2011 2012 2013 2014 2015 2016 2017

95

129

144

172

139

186

159

92

47

68

79

9189

104112

58

49%55%55%53%

64%56%

70%63%63%

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53% 55% 55%49%

Num

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of a

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Total Agency % of totalAgency




New participants

Growth objectives and digital advancements led many companies across industries to look to agencies as a means to achieve a new revenue stream, offer additional services to clients and help the company become more innovative.

Public relations, media services and other marketing companies acquired agencies. The same is true for publishing, online media, data, technology and consulting firms.

Meredith was a front runner in digital marketing. It acquired a number of agencies which led to Meredith Xcelerated, a digital agency that competes for business against other creative digital agencies. Hearst followed Meredith’s lead with the US$325 million acquisition of iCrossing, a search agency that evolved in part through acquisitions to be a global digital marketing firm. Shortly thereafter, Bertelsmann acquired Smashing Ideas. In addition to the three companies, there was a marked increase in acquisition activity by publishers in 2015. The New York Times, Financial Times, Time Inc., Vice Media and others made agency acquisitions to improve their digital marketing capabilities and better serve audiences and advertisers.

Technology firms have also become active in marketing M&A. During the past five years, they rank second to the marketing communications segment in acquisitions of agencies. Google, Facebook, Snapchat and others made numerous tech acquisitions; however, they also acquired digital creative companies to assist in content creation, user experience and marketing.

With public relations, marketing services, publishers, tech and other business services firms acquiring agencies, the ecosystem is becoming ever more complex and the buyer universe continues to expand.

Agency-related transactions by industry


0

58

117

175

233

292

350

2013 2014 2015 2016 2017

29

21

27

39

42

48

25

34

47

65

7560

48

119152

185184152

Ad agencies/Marketing services Tech rms Publishers Consulting

234

280

335

284

251

Num

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17



Consulting

The most recent acquirors in the agency landscape are the consulting and professional services firms. They have C-suite relationships and are buying and building marketing capabilities to gain a larger share of clients’ budgets. Also, since marketing tends to be further along the digital curve than other aspects of a company’s business, the consulting firms can use digital agencies as the tip of the spear to start an engagement and then leverage the relationship to embark upon a full digital transformation of a company’s business.

Consultancies focus on solving business problems. They engage with companies across a broad set of strategic and operational issues, and arguably have a better understanding of businesses than traditional marketing firms. Surrounded by complexity, the goal for management at many companies is simplicity and

the integration of financial and technology systems, sales and operations, data, customer knowledge and marketing activity. Many believe consultancies are best prepared to take a holistic view, facilitate integration and, as such, be a highly valued partner to clients.

While the consultancies have not made as many acquisitions as agencies and marketing services companies, those they have made recently have been significant. In 2017, while the value of the deals by marketing communications firms was flat year over year, consultancies were up more than 100%. Accenture alone invested in excess of US$1 billion in agency assets in 2017, more than any holding company. Granted, 2017 was a down year in acquisition activity for the holding companies.

Agencies vs Accenture | Deal volume comparison

Source: R3 M&A Report (Dec 2017)

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692

1.952

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652

1.156

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The consultancies have been dismissed by many agency leaders because of their focus on front- and back-end systems, cost cutting and lack of creativity. Accenture, Deloitte, IBM, KPMG, PwC and McKinsey seem bent on changing that perception by acquiring agencies known for creativity. Within the past two years, Accenture acquired Karmarama (UK) and SinnerSchrader (Germany), IBM purchased Resource/Ammirati (USA) and Aperto (Germany), and Deloitte acquired Heat

(USA) and Acne (Sweden). These examples are additions to the consultancies’ agency portfolios. Accenture has acquired about 20 agencies plus Mackevision, a 500+ person visualization and production house in 2018. Most recently, it was announced that Accenture will be acquiring Meredith's digital agency, Meredith Xcelerated Marketing (MXM). Deloitte has acquired over 12 agencies and PwC close to 10.

Consulting at holding companies

To help companies digitally transform their businesses, and in response to the encroachment of consulting firms on the creative and marketing landscape, the agency holding companies have taken steps recently to enhance consulting capabilities.

● Publicis — The acquisition of Sapient in 2014 was to make business transformation a core capability at the holding company.More recently, Publicis has been restructuring operations with the goal of becoming “the market leader in marketing transformation and digital business transformation”. In late 2017, the company introduced three initiatives: 1) the launch of Publicis Spine, which consists of the company’s data assets, a technology platform and all Publicis’ engineers and analysts; 2) identification of industry- practice verticals for digital transformation; and 3) alignment of DigitasLBi with Publicis Media.

● WPP — In January 2018, WPP launched Superunion, a “next generation global brand agency”, by combining five of its consultancies and design firms. Also in January, it consolidated four Kantar consultancies into one — Kantar Consulting. Kanter is positioned as a “specialist sales and marketing consultancy”. Further, the holding company has been developing consulting units within many of its agencies. For commerce, it consolidated two of its e-commerce consultancies with Wunderman to create a digital consultancy — Wunderman Commerce.

● Omnicom — Interbrand, a global brand consultancy, is an asset of Omnicom. The holding company recently broadened its CRM and digital offering through the Omnicom Precision Marketing Group to focus on business transformation and systems integration for clients. Also, it has been enhancing data-driven marketing capabilities through Annelect and the launch of Hearts & Science in 2016.

● IPG — The holding company owns FutureBrand, a brand consultancy. Two of its global digital agencies, R/GA and Huge, also have consulting practices. R/GA’s consulting practice was launched in 2012 and has become an important part of the agency’s business. The holding company is striving to add a consulting capability to all of its networks.

● Dentsu — The holding company has been enhancing its CRM and data-driven marketing capabilities through acquisitions such as Merkle. In addition, 360i has a unit focused on consulting as do other Dentsu assets, including Isobar Marketing Intelligence and Dentsu Aegis Consulting. Dentsu also acquired The Customer Framework, a London-based consultancy, in 2017.

24, rue Salomon de Rothschild - 92288 Suresnes - FRANCETél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87Web : www.carrenoir.com

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NOIR 100 %

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Dates S&P 500 Creative/Marketing AgenciesApr-15 0,995420787 0,991619273Apr-15 0,997040996 0,995469559Apr-15 1,002174496 0,986304216Apr-15 1,001394083 0,98627432Apr-15 0,990068007 0,975873792Apr-15 0,990068007 0,975873792Apr-15 0,990068007 0,975873792Apr-15 0,999212956 0,980651693Apr-15 0,997732476 0,994794145Apr-15 1,00281093 1,010236025Apr-15 1,005172866 1,005700578Apr-15 1,007437758 1,011330826Apr-15 1,007437758 1,011330826Apr-15 1,007437758 1,011330826Apr-15 1,003266227 1,010109518Apr-15 1,006044651 1,002109483Apr-15 1,00228141 0,994750835Apr-15 0,992130702 0,986875916

May-15 1,002966111 0,993347208May-15 1,002966111 0,993347208May-15 1,002966111 0,993347208May-15 1,005913793 0,994752951May-15 0,994008145 0,982212109May-15 0,989576725 0,980556683May-15 0,99331225 0,976766724May-15 1,006679063 0,997426385May-15 1,006679063 0,997426385May-15 1,006679063 0,997426385May-15 1,001556662 1,000197069May-15 0,998601645 0,991089014May-15 0,998297994 0,999554106May-15 1,00905774 1,007962682May-15 1,00983741 1,032362153May-15 1,00983741 1,032362153May-15 1,00983741 1,032362153May-15 1,01291524 1,024081962May-15 1,012259292 1,028609404May-15 1,011319117 1,028638487May-15 1,013682585 1,031647949May-15 1,01142028 1,0220916May-15 1,01142028 1,0220916May-15 1,01142028 1,0220916May-15 1,01142028 1,023732043May-15 1,001019964 1,008543673May-15 1,010190274 1,011567964May-15 1,008912425 1,004126149May-15 1,002537626 0,988309577May-15 1,002537626 0,988309577May-15 1,002537626 0,988309577Jun-15 1,004603214 0,989020069Jun-15 1,003587841 0,992362587Jun-15 1,005714417 0,997988596Jun-15 0,997045144 0,977369733Jun-15 0,995611724 0,959147744Jun-15 0,995611724 0,959147744Jun-15 0,995611724 0,959147744Jun-15 0,989165385 0,952916654Jun-15 0,98958007 0,94849594Jun-15 1,001497068 0,963564534Jun-15 1,003235333 0,969051775Jun-15 0,99621813 0,96264587Jun-15 0,99621813 0,96264587Jun-15 0,99621813 0,96264587Jun-15 0,991612937 0,952638509Jun-15 0,997258407 0,955892899Jun-15 0,999233308 0,955328523Jun-15 1,009124431 0,966551897Jun-15 1,003773892 0,961602252Jun-15 1,003773892 0,961602252Jun-15 1,003773892 0,961602252Jun-15 1,009891005 0,974311824Jun-15 1,010534038 0,973824085Jun-15 1,003103015 0,963946548Jun-15 1,000122123 0,972888138Jun-15 0,999729807 0,967271999Jun-15 0,999729807 0,967271999Jun-15 0,999729807 0,967271999Jun-15 0,978871032 0,942412907Jun-15 0,981473599 0,940212478Jul-15 0,988282416 0,953497999Jul-15 0,987973842 0,94889118Jul-15 0,987973842 0,945554057Jul-15 0,987973842 0,945554057Jul-15 0,987973842 0,945554057Jul-15 0,98415898 0,937609159Jul-15 0,990145635 0,934377958Jul-15 0,973658486 0,932181317Jul-15 0,975859822 0,95138466Jul-15 0,987898987 0,974652798Jul-15 0,987898987 0,974652798Jul-15 0,987898987 0,974652798Jul-15 0,998831544 0,988799054Jul-15 1,003282321 0,992546441Jul-15 1,002544034 0,989558658Jul-15 1,010575892 0,99780537Jul-15 1,011697404 1,003395898Jul-15 1,011697404 1,003395898Jul-15 1,011697404 1,003395898Jul-15 1,012477416 0,999885093Jul-15 1,00816087 0,992627126Jul-15 1,005754316 0,994035015Jul-15 1,000044066 0,985950501Jul-15 0,989340842 0,977349502Jul-15 0,989340842 0,977349502Jul-15 0,989340842 0,977349502Jul-15 0,983628633 0,966000633Jul-15 0,995812665 0,972075903Jul-15 1,003098496 0,983125804Jul-15 1,003127701 0,981212478Jul-15 1,0008468 0,991134372

Aug-15 1,0008468 0,991134372Aug-15 1,0008468 0,991134372Aug-15 0,998089636 0,986179413Aug-15 0,995846242 0,987214671Aug-15 0,998947159 0,989537663Aug-15 0,991200598 0,973870568Aug-15 0,988350959 0,966682444Aug-15 0,988350959 0,966682444Aug-15 0,988350959 0,966682444Aug-15 1,001011938 0,977791962Aug-15 0,991445592 0,973920531Aug-15 0,992384163 0,962753505Aug-15 0,991119144 0,964102112Aug-15 0,994999318 0,963810256Aug-15 0,994999318 0,963810256Aug-15 0,994999318 0,963810256Aug-15 1,000181251 0,965006126Aug-15 0,997556687 0,959894313Aug-15 0,989322503 0,950166932Aug-15 0,968449351 0,936902299Aug-15 0,937600934 0,917043086Aug-15 0,937600934 0,917043086Aug-15 0,937600934 0,917043086Aug-15 0,900648948 0,891030645Aug-15 0,888468955 0,892561623Aug-15 0,923149203 0,886096726Aug-15 0,945580472 0,89145441Aug-15 0,946155585 0,90341552Aug-15 0,946155585 0,90341552Aug-15 0,946155585 0,90341552Aug-15 0,938217298 0,896677818Sep-15 0,910467315 0,869585095Sep-15 0,9271224 0,875566636Sep-15 0,928200002 0,884929634Sep-15 0,913974221 0,869427061Sep-15 0,913974221 0,869427061Sep-15 0,913974221 0,869427061Sep-15 0,913974221 0,874729679Sep-15 0,936899454 0,88903571Sep-15 0,923875677 0,915003545Sep-15 0,928751381 0,915406569Sep-15 0,932918189 0,911796243Sep-15 0,932918189 0,911796243Sep-15 0,932918189 0,911796243Sep-15 0,92910307 0,905220564Sep-15 0,941025007 0,911982673Sep-15 0,94921892 0,926125178Sep-15 0,94678966 0,924135127Sep-15 0,931484906 0,913213462Sep-15 0,931484906 0,913213462Sep-15 0,931484906 0,913213462Sep-15 0,935736668 0,913897697Sep-15 0,924211691 0,893803665Sep-15 0,922316004 0,896476772Sep-15 0,919215172 0,887964427Sep-15 0,918786415 0,897681652Sep-15 0,918786415 0,897681652Sep-15 0,918786415 0,897681652Sep-15 0,895204291 0,884569722Sep-15 0,89630617 0,872071069Sep-15 0,913404373 0,896278642Oct-15 0,915209036 0,904420366Oct-15 0,928310394 0,918449805Oct-15 0,928310394 0,918449805Oct-15 0,928310394 0,918449805Oct-15 0,945291065 0,933759982Oct-15 0,941894822 0,938405176Oct-15 0,949464285 0,944644633Oct-15 0,957839145 0,949492032Oct-15 0,958534536 0,962746572Oct-15 0,958534536 0,962746572Oct-15 0,958534536 0,962746572Oct-15 0,95975409 0,956071381Oct-15 0,953205295 0,955002669Oct-15 0,948710685 0,951542687Oct-15 0,962801374 0,966755491Oct-15 0,967201173 0,969319725Oct-15 0,967201173 0,969319725Oct-15 0,967201173 0,969319725Oct-15 0,967464724 0,971567809Oct-15 0,966086435 0,975420278Oct-15 0,960460451 0,971374867Oct-15 0,976429488 0,95275413Oct-15 0,987201065 0,972109608Oct-15 0,987201065 0,972109608Oct-15 0,987201065 0,972109608Oct-15 0,985312551 0,970159154Oct-15 0,982796333 0,966896004Oct-15 0,99443332 0,970495235Oct-15 0,993983056 0,970160169Oct-15 0,989203182 0,977605296Oct-15 0,989203182 0,977605296

Nov-15 0,989203182 0,977605296Nov-15 1,000948453 0,978721856Nov-15 1,003678386 0,977026863Nov-15 1,000122894 0,974686775Nov-15 0,998988514 0,968758732Nov-15 0,998643299 0,965500101Nov-15 0,998643299 0,965500101Nov-15 0,998643299 0,965500101Nov-15 0,988832192 0,966211248Nov-15 0,990324632 0,966714829Nov-15 0,987130605 0,977744389Nov-15 0,973316697 0,959613458Nov-15 0,962410162 0,945149589Nov-15 0,962410162 0,945149589Nov-15 0,962410162 0,945149589Nov-15 0,976751159 0,949465277Nov-15 0,97544333 0,958495176Nov-15 0,991211297 0,961236285Nov-15 0,990096526 0,977493456Nov-15 0,99386832 0,974851989Nov-15 0,99386832 0,974851989Nov-15 0,99386832 0,974851989Nov-15 0,992642734 0,968301875Nov-15 0,993855809 0,959440399Nov-15 0,993728629 0,978540137Nov-15 0,993728629 0,987756558Nov-15 0,994315768 0,982284389Nov-15 0,994315768 0,982284389Nov-15 0,994315768 0,982284389Nov-15 0,989701261 0,976305868Dec-15 1,000274645 0,988661464Dec-15 0,989272818 0,98463329Dec-15 0,975053121 0,981641524Dec-15 0,995067718 0,979839518Dec-15 0,995067718 0,979839518Dec-15 0,995067718 0,979839518Dec-15 0,988114609 0,993445334Dec-15 0,981702808 0,976825848Dec-15 0,974105268 0,971489526Dec-15 0,97629796 0,974624731Dec-15 0,957336209 0,964910749Dec-15 0,957336209 0,964910749Dec-15 0,957336209 0,964910749Dec-15 0,961886922 0,960807228Dec-15 0,972100492 0,967894661Dec-15 0,986209117 0,976895636Dec-15 0,971376838 0,972985828Dec-15 0,954089872 0,970014772Dec-15 0,954089872 0,970014772Dec-15 0,954089872 0,970014772Dec-15 0,961511299 0,972201575Dec-15 0,96998756 0,977576675Dec-15 0,982035059 0,989797056Dec-15 0,980463383 0,990165185Dec-15 0,980463383 0,990368028Dec-15 0,980463383 0,990368028Dec-15 0,980463383 0,990368028Dec-15 0,978328539 0,989449337Dec-15 0,988728422 1,000021221Dec-15 0,981589386 0,999054827Dec-15 0,972351589 0,989463053Jan-16 0,972351589 0,989533928Jan-16 0,972351589 0,989533928Jan-16 0,972351589 0,989533928Jan-16 0,957472109 0,959657251Jan-16 0,959401202 0,965187147Jan-16 0,946817261 0,942996452Jan-16 0,92437799 0,919380862Jan-16 0,914359743 0,913507265Jan-16 0,914359743 0,913507265Jan-16 0,914359743 0,913507265Jan-16 0,915139946 0,908050229Jan-16 0,922277774 0,911685391Jan-16 0,899252681 0,910612177Jan-16 0,91426506 0,902433749Jan-16 0,894518691 0,893419687Jan-16 0,894518691 0,893419687Jan-16 0,894518691 0,893419687Jan-16 0,894518691 0,8855981Jan-16 0,894997004 0,887774895Jan-16 0,884528783 0,864352354Jan-16 0,889123267 0,865950072Jan-16 0,907161688 0,896331944Jan-16 0,907161688 0,896331944Jan-16 0,907161688 0,896331944Jan-16 0,892972476 0,890088717Jan-16 0,905604436 0,898136112Jan-16 0,895764362 0,905031474Jan-16 0,900716867 0,906777043Jan-16 0,923020262 0,923328711Jan-16 0,923020262 0,923328711Jan-16 0,923020262 0,923328711Feb-16 0,922610967 0,934820451Feb-16 0,90531941 0,925735945Feb-16 0,909839796 0,923119821Feb-16 0,911225668 0,923970527Feb-16 0,894388404 0,9000755Feb-16 0,894388404 0,9000755Feb-16 0,894388404 0,9000755Feb-16 0,881725127 0,871494185Feb-16 0,881142269 0,878720478Feb-16 0,880977302 0,881507249Feb-16 0,870138053 0,877756205Feb-16 0,887119994 0,881530538Feb-16 0,887119994 0,881530538Feb-16 0,887119994 0,881530538Feb-16 0,887119994 0,900887946Feb-16 0,901773291 0,905905938Feb-16 0,916638565 0,913604255Feb-16 0,912361228 0,916915322Feb-16 0,912337351 0,919495838Feb-16 0,912337351 0,919495838Feb-16 0,912337351 0,919495838Feb-16 0,925522746 0,918344258Feb-16 0,913995171 0,9150241Feb-16 0,918052743 0,899850859Feb-16 0,928472535 0,912277023Feb-16 0,926737657 0,909296357Feb-16 0,926737657 0,909296357Feb-16 0,926737657 0,909296357Feb-16 0,919208141 0,914157754Mar-16 0,941149395 0,929149905Mar-16 0,945005939 0,928976278Mar-16 0,948310966 0,934621283Mar-16 0,951443657 0,938599255Mar-16 0,951443657 0,938599255Mar-16 0,951443657 0,938599255Mar-16 0,952286461 0,94000221Mar-16 0,941583541 0,932876502Mar-16 0,946342821 0,941869353Mar-16 0,946487108 0,939808494Mar-16 0,962005863 0,953992631Mar-16 0,962005863 0,953992631Mar-16 0,962005863 0,953992631Mar-16 0,96079303 0,960665077Mar-16 0,95902704 0,958610297Mar-16 0,964397721 0,957628645Mar-16 0,970759952 0,975677018Mar-16 0,975034639 0,972953915Mar-16 0,975034639 0,972953915Mar-16 0,975034639 0,972953915Mar-16 0,975997245 0,96944865Mar-16 0,975142496 0,966105675Mar-16 0,968914905 0,969721575Mar-16 0,968545338 0,96355298Mar-16 0,968545338 0,961018863Mar-16 0,968545338 0,961018863Mar-16 0,968545338 0,961018863Mar-16 0,969075086 0,972240802Mar-16 0,977621084 0,982389095Mar-16 0,98187023 0,997211295Mar-16 0,979870097 0,994041097Apr-16 0,986072546 0,990040709Apr-16 0,986072546 0,990040709Apr-16 0,986072546 0,990040709Apr-16 0,982909132 1,003772321Apr-16 0,972936702 0,991442926Apr-16 0,983163845 0,996156346Apr-16 0,971388284 0,992383127Apr-16 0,974092871 0,99486003Apr-16 0,974092871 0,99486003Apr-16 0,974092871 0,99486003Apr-16 0,971423536 0,998805675Apr-16 0,980810734 1,00093616Apr-16 0,99065928 1,011723638Apr-16 0,990831707 1,013003166Apr-16 0,989856409 1,013369275Apr-16 0,989856409 1,013369275Apr-16 0,989856409 1,013369275Apr-16 0,996329773 1,011333621Apr-16 0,999402195 1,033903336Apr-16 1,00016237 1,023861837Apr-16 0,994970784 1,022939224Apr-16 0,995016663 1,022565621Apr-16 0,995016663 1,022565621Apr-16 0,995016663 1,022565621Apr-16 0,993215745 1,020565839Apr-16 0,995073008 1,022908108Apr-16 0,996717042 1,02799427Apr-16 0,987514748 1,023456795Apr-16 0,982512806 1,018750607Apr-16 0,982512806 1,018750607



Nov-16 1,004598946 0,947833982Nov-16 0,998044019 0,942323506Nov-16 0,993629207 0,93963942Nov-16 0,991970254 0,933302227Nov-16 0,991970254 0,933302227Nov-16 0,991970254 0,933302227Nov-16 1,014018765 0,938495837Nov-16 1,017843327 0,940567343Nov-16 1,029115575 0,918829669Nov-16 1,031123243 0,920006864Nov-16 1,029683043 0,923926996Nov-16 1,029683043 0,923926996Nov-16 1,029683043 0,923926996Nov-16 1,029565325 0,932785458Nov-16 1,037265184 0,924496812Nov-16 1,035624918 0,934604917Nov-16 1,040467888 0,945695343Nov-16 1,037984937 0,930819915Nov-16 1,037984937 0,930819915Nov-16 1,037984937 0,930819915Nov-16 1,045730175 0,943097602Nov-16 1,047991824 0,945625877Nov-16 1,048841526 0,944084884Nov-16 1,048841526 0,949176483Nov-16 1,052944952 0,952658657Nov-16 1,052944952 0,952658657Nov-16 1,052944952 0,952658657Nov-16 1,04741319 0,948124521Nov-16 1,048812373 0,95141282Nov-16 1,046028807 0,945530438Dec-16 1,042352648 0,94864232Dec-16 1,042766866 0,948896415Dec-16 1,042766866 0,948896415Dec-16 1,042766866 0,948896415Dec-16 1,048833177 0,949129506Dec-16 1,052413192 0,944010387Dec-16 1,066268136 0,933655165Dec-16 1,06856739 0,942575612Dec-16 1,074913979 0,962179019Dec-16 1,074913979 0,962179019Dec-16 1,074913979 0,962179019Dec-16 1,073693521 0,968778221Dec-16 1,080714088 0,982158171Dec-16 1,071940675 0,987604175Dec-16 1,076104476 0,974777299Dec-16 1,07422119 0,974238176Dec-16 1,07422119 0,974238176Dec-16 1,07422119 0,974238176Dec-16 1,076342842 0,974090918Dec-16 1,080257791 0,972386428Dec-16 1,077602414 0,973562578Dec-16 1,075593557 0,972392447Dec-16 1,076940557 0,971986553Dec-16 1,076940557 0,971986553Dec-16 1,076940557 0,971986553Dec-16 1,076940557 0,974548687Dec-16 1,079360494 0,975337392Dec-16 1,070344137 0,971114291Dec-16 1,070027376 0,972126046Dec-16 1,065065523 0,974023105Dec-16 1,065065523 0,974023105Jan-17 1,065065523 0,974023105Jan-17 1,065065523 0,971994819Jan-17 1,074104937 0,972348944Jan-17 1,080253443 0,974708506Jan-17 1,079419008 0,981779867Jan-17 1,083216691 0,988258077Jan-17 1,083216691 0,988258077Jan-17 1,083216691 0,988258077Jan-17 1,079374152 0,987329476Jan-17 1,079371887 0,989319434Jan-17 1,082424342 0,988829596Jan-17 1,08010613 0,988109896Jan-17 1,082101734 0,991129744Jan-17 1,082101734 0,991129744Jan-17 1,082101734 0,991129744Jan-17 1,082101734 0,986792444Jan-17 1,078891015 0,988920869Jan-17 1,080794266 0,980973076Jan-17 1,07689209 0,974311982Jan-17 1,080520896 0,976765619Jan-17 1,080520896 0,976765619Jan-17 1,080520896 0,976765619Jan-17 1,077612067 0,981707717Jan-17 1,084687979 0,987599176Jan-17 1,093390524 0,992390355Jan-17 1,092588185 0,991764617Jan-17 1,091640965 0,997621173Jan-17 1,091640965 0,997621173Jan-17 1,091640965 0,997621173Jan-17 1,085079082 0,995487513Jan-17 1,084113646 0,982721057Feb-17 1,084440659 0,978712885Feb-17 1,085057227 0,973646412Feb-17 1,092937852 0,97711203Feb-17 1,092937852 0,97711203Feb-17 1,092937852 0,97711203Feb-17 1,090627033 0,975395427Feb-17 1,09087569 0,967248536Feb-17 1,091630917 0,980312173Feb-17 1,097913359 0,973212886Feb-17 1,101824969 0,984665788Feb-17 1,101824969 0,984665788Feb-17 1,101824969 0,984665788Feb-17 1,107607975 0,997577021Feb-17 1,112047107 0,98850874Feb-17 1,11759541 1,004217893Feb-17 1,116632604 1,006467762Feb-17 1,118506085 1,008780612Feb-17 1,118506085 1,008780612Feb-17 1,118506085 1,008780612Feb-17 1,118506085 1,007021538Feb-17 1,125271378 1,008436383Feb-17 1,124052956 1,009730845Feb-17 1,124521602 1,009761606Feb-17 1,126204526 1,013813513Feb-17 1,126204526 1,013813513Feb-17 1,126204526 1,013813513Feb-17 1,127349139 1,016430153Feb-17 1,124441466 1,013945576Mar-17 1,13981639 1,019341857Mar-17 1,133137722 1,013362129Mar-17 1,133708035 0,980156069Mar-17 1,133708035 0,980156069Mar-17 1,133708035 0,980156069Mar-17 1,129994565 0,969162469Mar-17 1,126704019 0,966953316Mar-17 1,124126917 0,968240507Mar-17 1,125027364 0,969952089Mar-17 1,128703747 0,969205137Mar-17 1,128703747 0,969205137Mar-17 1,128703747 0,969205137Mar-17 1,129120116 0,964926925Mar-17 1,125305716 0,961850615Mar-17 1,134729621 0,961682183Mar-17 1,132882752 0,969802091Mar-17 1,131394114 0,968742082Mar-17 1,131394114 0,968742082Mar-17 1,131394114 0,968742082Mar-17 1,129119464 0,963860048Mar-17 1,115107231 0,964823655Mar-17 1,11721551 0,9602155Mar-17 1,116032535 0,963698838Mar-17 1,115088687 0,969256732Mar-17 1,115088687 0,969256732Mar-17 1,115088687 0,969256732Mar-17 1,11395287 0,970223886Mar-17 1,122028713 0,979206862Mar-17 1,123249661 0,977457434Mar-17 1,126545298 0,985931411Mar-17 1,124003809 0,990971852Apr-17 1,124003809 0,990971852Apr-17 1,124003809 0,990971852Apr-17 1,122156507 0,986517819Apr-17 1,12278475 0,991736265Apr-17 1,119355963 0,988198858Apr-17 1,121516172 0,982279264Apr-17 1,120591325 0,982356481Apr-17 1,120591325 0,982356481Apr-17 1,120591325 0,982356481Apr-17 1,121361233 0,983997926Apr-17 1,119750243 0,987110725Apr-17 1,115539764 0,990607027Apr-17 1,107941021 0,988990774Apr-17 1,107941021 0,990520463Apr-17 1,107941021 0,990520463Apr-17 1,107941021 0,990520463Apr-17 1,117482572 0,999692063Apr-17 1,114236992 0,988844175Apr-17 1,112323703 0,988411632Apr-17 1,12073361 0,997607793Apr-17 1,117332595 0,985411725Apr-17 1,117332595 0,985411725Apr-17 1,117332595 0,985411725Apr-17 1,129442519 1,001949147Apr-17 1,136323513 1,004208183Apr-17 1,135768347 1,003022443Apr-17 1,136396737 0,994536929Apr-17 1,134221095 0,983155567Apr-17 1,134221095 0,983155567Apr-17 1,134221095 0,983155567



Nov-17 1,227063716 0,798454662Nov-17 1,227299581 0,790102132Nov-17 1,231097963 0,787844478Nov-17 1,231097963 0,787844478Nov-17 1,231097963 0,787844478Nov-17 1,23266423 0,789183903Nov-17 1,232432704 0,781849Nov-17 1,234208799 0,782460223Nov-17 1,229568608 0,789239452Nov-17 1,228464341 0,79278821Nov-17 1,228464341 0,79278821Nov-17 1,228464341 0,79278821Nov-17 1,229674961 0,784979442Nov-17 1,226833451 0,788287475Nov-17 1,220053749 0,780551825Nov-17 1,230054746 0,785074411Nov-17 1,226825126 0,793421367Nov-17 1,226825126 0,793421367Nov-17 1,226825126 0,793421367Nov-17 1,228388962 0,7893302Nov-17 1,236422814 0,786855045Nov-17 1,235494203 0,789598723Nov-17 1,235494203 0,791831248Nov-17 1,238038147 0,792810975Nov-17 1,238038147 0,792810975Nov-17 1,238038147 0,792810975Nov-17 1,237562032 0,794646809Nov-17 1,24975017 0,809171891Nov-17 1,249284987 0,826869074Nov-17 1,259519608 0,826024843Dec-17 1,256967739 0,833869522Dec-17 1,256967739 0,833876886Dec-17 1,256967739 0,833876886Dec-17 1,255645837 0,840438279Dec-17 1,250952236 0,845755018Dec-17 1,250807649 0,840236231Dec-17 1,254475288 0,838880436Dec-17 1,261384958 0,840282276Dec-17 1,261384958 0,840282276Dec-17 1,261384958 0,840282276Dec-17 1,26542322 0,850129661Dec-17 1,267381342 0,8489162Dec-17 1,266781672 0,844835669Dec-17 1,261628263 0,842280684Dec-17 1,272948393 0,84968003Dec-17 1,272948393 0,84968003Dec-17 1,272948393 0,84968003Dec-17 1,279775173 0,842872406Dec-17 1,275643684 0,837989723Dec-17 1,274584934 0,838147592Dec-17 1,277116314 0,837281475Dec-17 1,276530264 0,837902296Dec-17 1,276530264 0,837902296Dec-17 1,276530264 0,837902296Dec-17 1,276530264 0,837963043Dec-17 1,27518264 0,837313706Dec-17 1,276189002 0,83594646Dec-17 1,278528574 0,839830593Dec-17 1,271903007 0,838555763Dec-17 1,271903007 0,838555763Dec-17 1,271903007 0,838555763Jan-18 1,271903007 0,83796923Jan-18 1,282463742 0,835213125Jan-18 1,290670586 0,814923443Jan-18 1,295871015 0,825169179Jan-18 1,304983606 0,831984935Jan-18 1,304983606 0,831984935Jan-18 1,304983606 0,831984935Jan-18 1,307154081 0,831328757Jan-18 1,308854807 0,833927506Jan-18 1,307399203 0,837158118Jan-18 1,316596226 0,846936714Jan-18 1,325485621 0,864636276Jan-18 1,325485621 0,864636276Jan-18 1,325485621 0,864636276Jan-18 1,325485621 0,879317074Jan-18 1,320812042 0,872501503Jan-18 1,333245373 0,869951902Jan-18 1,331092571 0,876004613Jan-18 1,336930866 0,874294179Jan-18 1,336930866 0,874294179Jan-18 1,336930866 0,874294179Jan-18 1,347716225 0,877230439Jan-18 1,35064491 0,870732647Jan-18 1,349890244 0,872375585Jan-18 1,350703268 0,87780603Jan-18 1,366694669 0,877443629Jan-18 1,366694669 0,877443629Jan-18 1,366694669 0,877443629Jan-18 1,357494421 0,866544487Jan-18 1,342702013 0,865586684Jan-18 1,343356606 0,862855528Feb-18 1,342484103 0,868799114Feb-18 1,314011703 0,859239663Feb-18 1,314011703 0,859239663Feb-18 1,314011703 0,859239663Feb-18 1,260166189 0,838635723Feb-18 1,282147133 0,826789153Feb-18 1,275732411 0,840716079Feb-18 1,227845632 0,859987631Feb-18 1,246182975 0,852158623Feb-18 1,246182975 0,852158623Feb-18 1,246182975 0,851939244Feb-18 1,263524069 0,861960198Feb-18 1,266828155 0,886370113Feb-18 1,283807137 0,928070628Feb-18 1,299301724 0,933194553Feb-18 1,299784918 0,952362787Feb-18 1,299784918 0,952362787Feb-18 1,299784918 0,952362787Feb-18 1,299784918 0,937562889Feb-18 1,292190303 0,925906222Feb-18 1,285089277 0,912522815Feb-18 1,286341608 0,906960157Feb-18 1,306958235 0,909082917Feb-18 1,306958235 0,909082917Feb-18 1,306958235 0,909082917Feb-18 1,322322921 0,918946102Feb-18 1,305522564 0,907788275Feb-18 1,29103667 0,907780544Mar-18 1,27383465 0,867469083Mar-18 1,280295864 0,860388718Mar-18 1,280295864 0,860388718Mar-18 1,280295864 0,860388718Mar-18 1,294419245 0,859961747Mar-18 1,297835473 0,860086611Mar-18 1,297207217 0,845973016Mar-18 1,302995865 0,845982838Mar-18 1,325638309 0,841185167Mar-18 1,325638309 0,841185167Mar-18 1,325638309 0,841185167Mar-18 1,323951465 0,841930752Mar-18 1,315526468 0,836605278Mar-18 1,307997085 0,837506404Mar-18 1,306973125 0,83702504Mar-18 1,30920044 0,837941937Mar-18 1,30920044 0,837941937Mar-18 1,30920044 0,837941937Mar-18 1,290602253 0,841497379Mar-18 1,292516979 0,82055796Mar-18 1,290131628 0,814939135Mar-18 1,257670108 0,805824639Mar-18 1,231300969 0,797909265Mar-18 1,231300969 0,797909265Mar-18 1,231300969 0,797909265Mar-18 1,264740331 0,805751277Mar-18 1,242890488 0,813534986Mar-18 1,239262087 0,820894269Mar-18 1,25632562 0,821750068Mar-18 1,25632562 0,822925309Mar-18 1,25632562 0,822925309Apr-18 1,25632562 0,822925309Apr-18 1,228265283 0,816977732Apr-18 1,243756816 0,809857779Apr-18 1,258143826 0,815484729Apr-18 1,266777414 0,827074338Apr-18 1,239010847 0,833158682Apr-18 1,239010847 0,833158682Apr-18 1,239010847 0,833158682Apr-18 1,243144639 0,839233908Apr-18 1,243144639 0,841401139

%%%%%%%%

Apr-

15

May

-15

Jul-1

5

Aug-

15

Sep-

15

Nov

-15

Dec

-15

Feb-

16

Mar

-16

Apr-

16

Jun-

16

Jul-1

6

Aug-

16

Oct

-16

Nov

-16

Jan-

17

Feb-

17

Mar

-17

May

-17

Jun-

17

Jul-1

7

Sep-

17

Oct

-17

Dec

-17

Jan-

18

Feb-

18

Apr-

18

Creative/Marketing AgenciesS&P 500

708090

100110120130140


Clients

Another challenge to creative agencies is the trend of clients taking marketing activities in-house.

To reduce costs, be able to act quickly and have more control over marketing that is increasingly driven by social, mobile and video, companies are building in-house agencies and using their proprietary data to manage customer relationships. They are working directly with companies like Google and Facebook, a duopoly responsible for about 70% of digital advertising; publishers who are interested in joint-marketing programs; and production companies for content creation and execution. Further, marketers are setting up in-house media groups to implement programmatic buying.

Long-standing AOR (agency of record) relationships are, for the most part, a thing of the past, as most clients now engage agencies on a project-by-project basis. Further, an ANA-commissioned report in 2016 shed light on the use of cash rebates and other non-transparent practices in the US media-buying world. This created a substantial amount of pressure on the agency community.

The report was followed by a US Department of Justice investigation, as well as another ANA report in 2017, citing non-transparent and questionable practices by agencies and holding companies related to the production of commercials, events and other material.

The trust many clients had developed with their agencies was eroded and some chose to take certain aspects of their marketing into their own hands.

Summary

Creative agencies are being challenged on many fronts. Consultancies and other parties have entered the ecosystem, marketing is becoming more digitally driven, clients have reduced spending through zero- based budgeting, and companies are taking creative and media work in-house. For the past 18 months or so, investors have been concerned with marketplace trends, as evidenced by the performance of the publicly traded agency holding companies compared to the S&P 500. The concern was realized in the reported 2017 financial results. By most measures, performance was weak. As stated by WPP CEO Martin Sorrell, “2017 was not a pretty year”. Unfortunately, 2018 may not be much better.

Despite the many challenges creative agencies face, they are entrepreneurial and have found ways to reinvent themselves in the past. This time, they will need

the right mix of creativity, data and analytical insights, a unified client-centric structure, as well as innovative ways to engage with people to build businesses.


Agency market performance (benchmarked to SPX)


Selected transactions in the segment

Date Target Buyer Transaction rationaleDeal value

(US$m)

Dec 2017 Asatsu-DK Bain Capital Create value and build on data and digital skills. Bain to take Asatsu private. 1.350

Dec 2017 Swirl Dentsu Increase Dentsu’s capabilities in digital and social-first marketing in the US -

Sep 2017 CAA Marketing The Stagwell Group

Integrate with Stagwell’s other marketing offerings -

Aug 2017 Design Bridge WPP Strengthen WPP’s branding and identity capabilities -

Jul 2017 thjnk WPP Focus on growth in Western Continental Europe after Brexit -

Feb 2017 SinnerSchrader Accenture Strengthen Accenture’s customer experience skills in Germany 74

Jan 2017 Sequence Salesforce Enhance user experience and design services as part of a consultancy group 26

Nov 2016 Creston/Unlimited Dbay Advisors Growth and act as financial sponsor in a move

from public to private ownership 94

Nov 2016 Karmarama Accenture Add creativity and expand brand strategy and mobile experience capabilities 175

Oct 2016 Wondersauce Project Broaden digital and e-commerce skills -

Aug 2016 iStrategyLabs J. Walter Thompson

Scale the company’s capabilities in the digital advertising space -

Aug 2016 Merkle Dentsu Strengthen customer relationship and digital marketing offerings 979

Jul 2016 Idea Couture Cognizant Offer clients extensive digital strategy and design services -

Feb 2016 Heat Deloitte Add creativity to Deloitte Digital’s consulting capabilities -

Jan 2016 Resource/Ammirati IBM Support IBM iX’s digital, creative and design

skills -

Oct 2015 Dare Digital Oliver Group Combine Dare Digital’s digital offering with Oliver’s industry marketing model 1,3

Jul 2015 Sid Lee Kyu (Hakuhodo)

Add creativity for Kyu and access to Asia for Sid Lee -

Nov 2014 Sapient Corp Publicis Groupe

Include a core consulting and technology capability to Publicis 3.687

May 2013 Fjord Accenture Expand digital, marketing capabilities offered through Accenture Interactive 74

M&A activity


M&A activity

Selected Oaklins creative agencies transactions


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Oaklins offers a comprehensive range of services ● M&A advisory (buy- and sell-side) ● Growth equity and equity capital markets advisory

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Oaklins industry specialist

Creative agencies is one of our focus areas. Combining comprehensive sector knowledge with global execution has led Oaklins to become the most experienced M&A advisor in the creative agencies sector, with a large contact network of the most relevant market players worldwide. This results in the best possible merger, acquisition and divestment opportunities for creative agencies companies.

If mergers, acquisitions or divestitures of businesses or business units are part of your strategy, we would welcome the opportunity to exchange ideas with you. Please find our contact details below.

John Kaiser, PartnerNew York, USA

T: +1 212 651 2567

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CREATIVE AGENCIES – UNDER FIRE · 2019-07-09 · the digital production arms for the larger...

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