A VIEW FROM THE MARKET ANALYSTS: Analysts from Wall Street and the City give their views on how the big agency holding companies are doing and what will happen.(Brief Article)

 
WPP 
WHAT, IN YOUR VIEW, IS THE POSITIONING OF THE MAIN AGENCY HOLDING 
COMPANIES? 
'The biggest three are positioned first and foremost on size. WPP, IPG 
and Omnicom are dollars 7 billion to dollars 8 billion companies, while 
the rest are dollars 2 billion or below. The big three can say to big 
clients: 'Give us your business and if we don't have what you want 
already in the group we'll just go out and buy it.'' 
WHAT ARE THEIR STRENGTHS? 
'The WPP networks are the ones with the best asset names in the sense of 
having huge amounts of heritage and history. That still counts for 
something.' 
WHAT ARE THEIR RELATIVE WEAKNESSES? 
'It has struggled to deliver organic growth.' ... 'Conquest/Red Cell has 
continued to disappoint.' 
WHAT STRATEGIC DIRECTIONS ARE THEY HEADED IN? 
'The biggest groups can't keep acquiring forever - there's a limit to 
consolidation but WPP is the only one of the big three that has a clear 
vision about where it can continue building - it wants to extent its 
market research portfolio.' ... 'WPP is expanding in higher margin and 
faster growth areas both operationally - below the line and integrated 
market-ing services - and geographically, in Asia.' 
 
OMNICOM 
WHAT, IN YOUR VIEW, IS THE POSITIONING OF THE MAIN AGENCY HOLDING 
COMPANIES? 
'Omnicom is clearly the most creative of the big three groups.' 
WHAT ARE THEIR STRENGTHS? 
'Creativity. It gets more industry prizes and the perception now is that 
industry prizes translate into new business. That's perhaps why it was 
able to deliver 8 per cent organic growth last year.' 
WHAT ARE THEIR RELATIVE WEAKNESSES? 
'There must be something. If I can think of anything, I'll get back to 
you.' 
WHAT STRATEGIC DIRECTIONS ARE THEY HEADED IN? 
'Omnicom has looked at talent agencies but it's small beer and short 
term. Advertising's next big idea will not be to move into content 
creation and joint ventures with entertainment companies.' ... 'Omnicom 
has realised that in the multichannel age, it has to find different ways 
to catch attention. I think it is one of the leaders in that respect.' 
 
IPG 
WHAT, IN YOUR VIEW, IS THE POSITIONING OF THE MAIN AGENCY HOLDING 
COMPANIES? 
'IPG is a good, solid business.' 
WHAT ARE THEIR STRENGTHS? 
'The McCann network is up there with the best of them.' 
WHAT ARE THEIR RELATIVE WEAKNESSES? 
'The main question mark is over the strength of its other assets. Lowe 
is unproven and FCB has never been a strong network.' 
WHAT STRATEGIC DIRECTIONS ARE THEY HEADED IN? 
'Of the big three, IPG has the least idea about where it is going in the 
long term. It has to find a way of joining forces with management 
consultancy companies. But IPG has been playing with things like Brands 
Hatch. Is it serious about motor racing? I don't think so.' ... 'The 
future is about agencies moving into content provision. IPG has been 
astute in hiring people who have a feel for this area. The future will 
be about paid-for content, embedded advertising and advertorials. It 
will return advertising to its grass roots.' 
 
BCOM3 
WHAT, IN YOUR VIEW, IS THE POSITIONING OF THE MAIN AGENCY HOLDING 
COMPANIES? 
'Before the Publicis deal it was down at the bottom of the table 
alongside Grey.' 
WHAT ARE THEIR STRENGTHS? 
'Very US.' 
WHAT ...