Media Forum: Does ranking matter in media?(survey)

Do media agency league tables help to drive consolidation, Alasdair Reid asks.

It seems to have the inevitability of a Cold War arms race. In their more high-minded moments, media agencies tend to argue that their league table placing doesn't really matter in the greater scheme of things. But don't believe a word of it.

Take the latest table from Nielsen Media Research, published in Campaign last week. The theory is that acquisition doesn't have to be followed by consolidation - WPP is not alone in maintaining there are advantages in keeping its various media agencies in separate silos, save for a few functions, such as back office and pooled buying negotiations with media owners.

But in practice, lines begin to be blurred when there's any prospect of leaping up the league table. In this instance, we are talking about Starcom UK Group - also known variously as Starcom Motive and Starcom Mediavest. The individual units, which remain cherished brands, would be poorly placed in the top ten but Starcom UK Group has surged to number two in the chart with billings of pounds 673 million - just behind the chart-topper, MediaCom, which boasts billings of pounds 715 million.

This will doubtless be food for thought at OMD. Its two brands are separately placed in the table at positions seven and nine; jointly, they would have been top of the table with billings of pounds 745 million, so expect combined OMD figures next year in a challenge for the number one spot.

And will the WPP agencies declare jointly? And perhaps the two wings of the Publicis media empire (Starcom and ZenithOptimedia). Just how important is the league table as a driver of consolidation? And is the phenomenon starting to worry advertisers?

Provocatively perhaps, Jim Marshall, the chairman of Starcom UK Group, says focusing only on size and league table position is 'one-dimensional' thinking. He states: 'It's far more important to understand the culture, the strengths and the track records of the agencies within a group. Combining the figures makes sense for us because we are one organisation and one legal entity, so to do (otherwise) would be to invite confusion. Within the group, our brands (Starcom Motive and Starcom Mediavest) have very differentiated cultures - but wherever it helps us, we will leverage our power in the market to generate the right sorts of exposure for our clients.'