Feb 2, 2001

Clients' 'holistic' approach leads to change in global network priorities

Global agency networks are giving roughly equal importance to

advertising and marketing communications, because clients are

increasingly adopting a holistic approach to their communications

strategy.



This can easily be seen in such giants as Interpublic Group, WPP and

Omnicom, all of which have an array of communications tools at their

disposal - media planning and buying, including new media; promotions;

public relations; and branding and design in addition to

advertising.



The situation is similar in Cordiant Communications Group plc, the

parent company of Bates and CCG.XM among others.



Chairman and CEO Michael Bungey said that three years ago, advertising

accounted for 80 per cent of the group's revenue with the remainder

earned from marketing communications.



Today, it's advertising at 52 per cent and marketing communications at

48 per cent.



He predicted that advertising would soon be overshadowed by its younger

cousins.



"I think that marketing communications already outstrips advertising on

a general basis. For us, that hasn't yet happened, but it will do in the

near future," Mr Bungey told MEDIA.



Cordiant's commitment to marketing communications is underlined by a

range of companies operating in this field such as 141 Worldwide, Fitch

and PSD.



The group has also made its first venture into PR following the

acquisition of an Australian operation, PPR.



Said Mr Bungey, "PPR will be developed in Asia. Hopefully, it will go

global over the next few years."



However, he stressed that the advances made by marketing communications

have not been at the expense of advertising at Cordiant.



Marketing communications, he said, was expanding at a much faster

double-digit rate, while advertising was growing at around six per cent

annually: "It's not a case of the pie shrinking. It is actually

growing."



Mr Bungey said the emphasis on marketing communications came mainly from

the fact that clients were now embracing a whole host of communications

capabilities to build brands in an integrated and holistic manner.



"Branding is one of the prime discriminators of similar products

produced and sold by many different companies. Take automobiles as an

example; there aren't any bad cars - some are good while others are

better, and so the only discriminator is how they are branded.



"It is, therefore, a must to nurture and guard a brand. Unless

constantly fed, the brand will weaken. Companies recognise this. They

also recognise that they have many different ways in which to build a

brand," Mr Bungey said.



Clients' 'holistic' approach leads to change in global network
priorities

Global agency networks are giving roughly equal importance to

advertising and marketing communications, because clients are

increasingly adopting a holistic approach to their communications

strategy.



This can easily be seen in such giants as Interpublic Group, WPP and

Omnicom, all of which have an array of communications tools at their

disposal - media planning and buying, including new media; promotions;

public relations; and branding and design in addition to

advertising.



The situation is similar in Cordiant Communications Group plc, the

parent company of Bates and CCG.XM among others.



Chairman and CEO Michael Bungey said that three years ago, advertising

accounted for 80 per cent of the group's revenue with the remainder

earned from marketing communications.



Today, it's advertising at 52 per cent and marketing communications at

48 per cent.



He predicted that advertising would soon be overshadowed by its younger

cousins.



"I think that marketing communications already outstrips advertising on

a general basis. For us, that hasn't yet happened, but it will do in the

near future," Mr Bungey told MEDIA.



Cordiant's commitment to marketing communications is underlined by a

range of companies operating in this field such as 141 Worldwide, Fitch

and PSD.



The group has also made its first venture into PR following the

acquisition of an Australian operation, PPR.



Said Mr Bungey, "PPR will be developed in Asia. Hopefully, it will go

global over the next few years."



However, he stressed that the advances made by marketing communications

have not been at the expense of advertising at Cordiant.



Marketing communications, he said, was expanding at a much faster

double-digit rate, while advertising was growing at around six per cent

annually: "It's not a case of the pie shrinking. It is actually

growing."



Mr Bungey said the emphasis on marketing communications came mainly from

the fact that clients were now embracing a whole host of communications

capabilities to build brands in an integrated and holistic manner.



"Branding is one of the prime discriminators of similar products

produced and sold by many different companies. Take automobiles as an

example; there aren't any bad cars - some are good while others are

better, and so the only discriminator is how they are branded.



"It is, therefore, a must to nurture and guard a brand. Unless

constantly fed, the brand will weaken. Companies recognise this. They

also recognise that they have many different ways in which to build a

brand," Mr Bungey said.



Source:
Campaign Asia
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