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    Global New Business Revenue Down More than 5% in 2020

    The numbers could have been far worse had it not been for an uptick in media new business.

    By Robert Cameron - Feb 3, 2021
    Global New Business Revenue Down More than 5% in 2020

    Credit: Negative Space via Pexels.com

    According to a new report from R3 new business revenue in 2020 was down by single-digits at 5.8%, a number which could have been far worse had it not been for the dynamic media landscape. Media new business revenue for the period of January to December 2020 increased by 6.9%, making up for a much weaker Creative market (-12.6%).

    “The numbers tell us something deeper than a desire for greater efficiency,” said Greg Paull, Co-founder & Principal at R3.

    “Technology has made media a key driver of marketing. Being at the right place, at the right time, at the right price makes a significant impact when it comes to conversion. Creative is reliant on media for form, visibility, and engagement. Marketers recognize the shift and are looking for partners who can lead.”

    Creative Sees 14% More Pitches, but 12% Less Revenue

    Havas Worldwide is the top-performing agency globally in Creative new business, moving up from third place the previous year. Droga5, VMLY&R, Isobar, and Ogilvy follow, making up the top five.

    “Marketers expect data expertise and capability from all their partners. Media agencies need to continue to adjust their offering to really understand their clients’ business.”

    Droga5 has moved ten places in R3’s new business league in the past twelve months, winning global accounts for Airbnb and Huggies. VMLY&R leaped from the twentieth spot to third.

    MediaCom, the Only Media Agency to Maintain A Position in the Top 5

    Though the media new business landscape has been resilient, revenue from wins for the top five media agencies decreased by 27% compared to the previous year. MediaCom leads in new business wins, followed closely by Initiative, Wavemaker, Starcom, and OMD.

    This marks a shift in top performers, as MediaCom was the only agency to maintain a top-five position from the previous year.

    “Like it’s revamped agency proposition which focuses on systems thinking and business performance, MediaCom is using language that resonates with clients,” says Paull.

    “Marketers expect data expertise and capability from all their partners. Media agencies need to continue to adjust their offering to really understand their clients’ business.”

    WPP Tops Holding Company Performance

    WPP outperformed the holding groups, with twice the revenue and number of new business wins compared to its closest contender Publicis Groupe. WPP’s direction, which is more aligned to the fast-digitalizing marketplace, has enabled the holding company to surpass its previous year’s Creative revenue by 134% and Media revenue by 161%.

    Interpublic, Omnicom, and Dentsu round up the top five performers. Dentsu ranks second in total number of wins.

     

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