WPP / Ogilvy & Mather lands Wachovia for 7 hours
September 26, 2008
A few hours ago we reported that WPP / Ogilvy & Mather landed Wachovia as their advertising agency of record. Well we live in interesting time. It appears that they lost the account already… literally about 7 hours or so after the announcement Citibank is now discussing the purchase of Wachovia…
The Citibank agency of record is Euro RSCG their holding company is Havas… not WPP.. … like they are going to allow feeding of a competitor…
“We should brand all these new assets Citibank.. it’s good for business”
Of course that means that WPP / Ogilvy & Mather … has the account for … about 7 hours… before the company entered buyout talks.
There is an Update to this post.. as it’s official… Wachovia is officially sold… so the new O&M deal might of been a single press release ……
Publicis Acquires SEO firm Performics From Google
August 6, 2008
The Advertising Agency Holding Company, Publicis Groupe , has just opened up a can of worms by buying Performics From Google. This now needs to be addressed by WPP Group plc, InterPublic NYSE IPG, Omnicom Group Inc , Havas, and others in the holding company model. The fear is now that Publicis will be viewed as the more technically savvy advertising agency in terms of search marketing and optimization giving them an extreme advantage for new business pitches.
Publicis Groupe has just bought Performics, the search optimization firm that Google inherited in its purchase of DoubleClick. The deal gives Publicis a big boost in search-marketing capabilities. It is the first holding company to purchase a stronger SEO firm.
Though most of the revenue Performics generates is from search engine marketing, not search engine optimization. It does have a moderate sized SEO team. Meaning that Publicis went from virtually no SEO skill set to being the leader (within the holding companies) with one purchase.
Performics was an unwanted asset in the Google purchase of Double Click, as it did not want to appear to have an SEO firm with inside access to Google’s innerworkings.
In fact Google went to great lengths to keep information from Performics. To the point of releasing info on their public blog prior to informing their own SEO company.
It’s widely expected that multiple SEO firms are now targeted for purchase by the holding companies as you could expect many in the search marketing agency industry to come under holding company ownership in the next year as the industry mindset is focused from just ‘digital’ to search optimization and search marketing.
An unnamed spokeswomen from Publicis replied to the question:
“How do you think this Performics deal will affect the rest of the holding companies”
Her reply:
“they (the holding companies) are going to have a hell of a time catching up”
Havas Dumps McKinney - Sold back to Owner
June 26, 2008
Just an interesting story… They sell their Agency to a holding company… few years later.. buy it back 100% … However they were bleeding employees… (funny how the good stuff comes out in the local biz journal)..
McKinney’s work includes ads for Audi, Travelocity and Sony. McKinney has 181 employees, down from 251 at the end of 2006.
The management of Durham-based McKinney, the Triangle’s largest advertising agency, has bought back the company from French conglomerate Havas, the two companies announced Thursday.
The deal, which comes seven years after Havas bought McKinney, gives a management team led by CEO Brad W. Brinegar 100 percent ownership of the firm.
Omnicom group making bank as well —-
April 22, 2008
Omnicom Group (NYSE:OMC) Inc. Tuesday reported first-quarter net income of $208.7 million, or 65 cents a share, topping the mean estimate of analysts polled by Thomson Financial of 62 cents a share.
Revenue for the three months ended March 31 rose 12.5% to $3.2 billion from $2.84 billion a year earlier, while Wall Street analysts forecast sales of $3.13 billion.
Shares of the New York-based advertising agency closed Monday at $46.19.
This is interesting since HAVAS just posted a good quarter as well.
Calm before the storm?
HAVAS makes bank : Organic Growth: + 7.4% for Q1 2008
April 22, 2008
Pretty amazing to see growth with HAVAS .. they still strongly lack in interactive / SEO and SMO in our opinion, however they appear to be making some bank..
They are claiming that they are seeing extreme growth in North America, in which was a shocker for us… because of the exchange rate drop of the US dollar that means the growth had to be double digits in order to even break even with the dollar fall from grace…
SURESNES, France, April 22, 2008 /PRNewswire-FirstCall via COMTEX/ — “Havas reported organic growth for first quarter 2008 in line with expectations. This confirms the positive trend observed throughout 2007, underscores the validity of our business model based on integration with digital at the core and reflects our stronger position in key markets,” Fernando Rodes Vila, Chief Executive Officer of the Havas Group.
1. General comments
Havas reported organic growth of +7.4% at constant exchange rates and consolidation scope.
Q1 2008 revenue was EUR345 million, an increase of +2.5% over 2007, despite the appreciation of the Euro against the US dollar and GB pound, which had a negative impact on the Group of EUR20 million over the first three months of the year.
Net new business for the first quarter was EUR 510 million, 33% higher than the quarterly average in 2007.
Finally, all the Group’s key performance indicators are in line with expectations.
One of the highlights of the first quarter has been the expansion of the Group’s presence in the UK and in the US thanks to:
- the acquisition of BLM, the leading independent media agency, which has combined with Arena Media Communications (part of Havas Media) in a deal which doubles Havas’ media presence in the UK. In addition, BLM Quantum in combination with Media Contacts becomes the second largest digital media group in this key market.
- the acquisition of CAKE, the leading independent branded entertainment agency in the UK, which will join Havas Entertainment (part of Havas Media); its results will be consolidated with effect from April 1, 2008.
- the acquisition of KADIUM, a strong digital agency in California, that we have merged with our advertising agency Euro RSCG San Francisco in keeping with our strategy of integrating digital vs leaving in a silo.
2. Detailed calculation of organic growth by region
EUROPE
Growth was sustained across Europe as a whole, with Spain, Portugal, Italy and Germany achieving double-digit growth; all the other major countries reported continued growth.
NORTH AMERICA
North America saw a significant increase in growth across all our businesses.
REST OF WORLD
Asia Pacific maintained its trend of double-digit growth. In Latin America, growth in advertising and media expertise remained satisfactory in most countries with the exception of Puerto Rico and Colombia.
3. Net New Business(1) in Q1 2008
Net New Business was EUR 510 million in the first quarter of 2008.
4. Creativity
The BIG WON Report (Worldwide Rankings) ranked BETC Euro RSCG the world’s 5th most awarded agency in TV and Euro RSCG 4D Amsterdam the world’s 8th most awarded agency for digital, as well as 10th best digital campaign worldwide for Volvo ‘The Hunt’ (plus a 16th place for Volvo ‘A Product of Free Will’).
Arnold Boston’s “Singing Cowboy” campaign for American Legacy was voted most awarded campaign worldwide in TV and 2nd most awarded campaign (all categories). Arnold featured in the Top 20 (no. 18) of the world’s most awarded agencies.
Campaign Brief (Asia Pacific) put The Furnace Sydney (Australia) in its Top 3 Hottest Agencies (under Aus$ 100 million). Euro RSCG Shanghai was ranked 8th and Euro RSCG Flagship (Thailand) 7th.
At the first Asia Pacific Effies, The Furnace took Silver for its Skins (sportswear) campaign.
At the Asia Pacific Advertising Festival (ADFEST), Euro RSCG Flagship won 2 Silver awards (Nanyang Sandals), while Euro RSCG India took 1 Bronze for Reckitt Benckiser and Euro RSCG Kuala Lumpur 1 Bronze for Penline Art Supplies.
The latest RECMA Compitches Report (Media Agency competitiveness) ranked MPG UK 3rd in Europe and 5th in the overall table. MPG USA came in at 7th in the US ranking.
Euro RSCG Prague, was named Agency of the Year in the Czech Republic for the second year running.
BETC Euro RSCG was named Agency of the Year in France.
Top Com Corporate Business (France) awarded Euro RSCG C&O its Grand Prix in the Strategy Communication/B2B category for EDF ‘L’avenir est un choix de tous les jours’.
Mobius Festival:
A Best of Show TV award went to the INPES Free Hugs campaign by BETC Euro RSCG and a Winner each for PSA, TV Canal+ (’Brokeback Mountain’ campaign) and Canal Sat (’The Experts’ campaign).
Best of Show Cinema In Flight went to the American Legacy Singing Cowboy campaign by Arnold Boston, plus 1 Winner in the Outdoor category for Dulcolax by Euro RSCG Dusseldorf.
5. Calendar
The combined shareholders’ meeting will be held on May 29, 2008 at 8.00 a.m. at the Havas head offices in Suresnes.
Revenue for the first half-year of 2008 will be published at the end of July.
About Havas
Havas (Euronext Paris: HAV.PA) is a global advertising and communications services group. Headquartered in Paris, Havas operates through its two worldwide networks, Euro RSCG Worldwide and Havas Media, which are headquartered in New York and Barcelona respectively, and through a number of independent agencies renowned for their creativity, such as Arnold Worldwide Partners. A multicultural and decentralized Group, Havas is present in more than 75 countries through its networks of agencies and contractual affiliations. The Group offers a broad range of communications services, including traditional advertising, direct marketing, media planning and buying, corporate communications, sales promotion, design, human resources, sports marketing, multimedia interactive communications and public relations. Havas employs approximately 14,400 people.
Further information about Havas is available on the company’s website: http://www.havas.com
Forward-Looking Information
This document contains certain forward-looking statements which speak only as of the date on which they are made. Forward-looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas’ current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas’ actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas’ filings with the Autorite des Marches Financiers (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise.
(1) Net New Business :
Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas’ management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas’ guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies.
(1) Net account wins, expressed in estimated annual billings. Full definition given on page 6 of this press release.
Contacts :
Communications : Lorella Gessa
Tel: +33(0)1-58-47-90-36
[email protected]Investor Relations: Herve Philippe
Chief Financial Officer
Tel: +33(0)1-58-47-91-23
[email protected]Elsa Cardarelli
Tel: +33(0)1-58-47-90-58
[email protected]SOURCE Havas
on a side note, we wanted to congratulate ourselves on our 1000th news article :)
Havas Conran Design Group under fire
April 14, 2008
Jasper Conran, the retailer son of British designer and restaurant owner Sir Terence Conran, is poised to wade into his father’s row with Havas over the advertising giant’s use of the family name.
Earlier this month Sir Terence sent a letter to Havas chairman Vincent Bolloré amid fury over the company’s aggressive expansion plans for the Conran Design Group brand.
Now that’s a hot story… taking the guys name… and branding it as your own……. hot…
Havas Profit Increases 81%
March 10, 2008
It appears that Havas is making bank, and plenty of it.
Full Story March 10 (Bloomberg) — Havas SA, the owner of the Euro RSCG Worldwide advertising agency, said 2007 profit rose 81 percent as it won accounts with BNP Paribas SA and Kraft Foods Inc.
Net income rose to 83 million euros ($127 million), or 19 cents a share, from 46 million euros, or 11 cents, a year earlier, Havas, based in the Paris suburb of Suresnes, said in a statement today. Analysts predicted profit of 82.3 million euros, the average of four estimates compiled by Bloomberg.
The company, whose largest investor is French billionaire Vincent Bollore, reported accelerating revenue growth in each quarter last year as it won 1.5 billion euros of new business. Chief Executive Officer Fernando Rodes Vila said in a presentation in Paris today that he’s “optimistic” about growth this year, while 2009 will be more “complicated.”
Full Story
Pretty Amazing story overall to see that level of growth when some other firms are down in the toilet.
The only reason 2008 is ’secure’ and 2009 could be in the dumps is because many firms already have a set spend and a set budget… that will of course get re-evaluated for 2009.
Living on borrowed time of course.
HAVAS London Office : 2,245 sq ft in total
February 18, 2008
We always have trouble with British English, but if we read this right, it means HAVAS London is moving into a 2,245 sq ft flat. It’s below the average square footage of a 4 bedroom new home in many areas.
We know times are tough, but talk about cramped quarters.
London, UK commercial property estate agency MERJS, is delighted to announce a new instruction on behalf of HAVAS, one of the world’s largest advertising agencies. The air-conditioned office suite to let at 1 Bedford Avenue, London WC1, is currently arranged as a large open plan office area, a private meeting room and kitchenette, approximately 2,245 sq ft in total.
Full Story
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