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

<p>Global agency networks are giving roughly equal importance to </p><p>advertising and marketing communications, because clients are </p><p>increasingly adopting a holistic approach to their communications </p><p>strategy. </p><p><BR><BR> </p><p>This can easily be seen in such giants as Interpublic Group, WPP and </p><p>Omnicom, all of which have an array of communications tools at their </p><p>disposal - media planning and buying, including new media; promotions; </p><p>public relations; and branding and design in addition to </p><p>advertising. </p><p><BR><BR> </p><p>The situation is similar in Cordiant Communications Group plc, the </p><p>parent company of Bates and CCG.XM among others. </p><p><BR><BR> </p><p>Chairman and CEO Michael Bungey said that three years ago, advertising </p><p>accounted for 80 per cent of the group's revenue with the remainder </p><p>earned from marketing communications. </p><p><BR><BR> </p><p>Today, it's advertising at 52 per cent and marketing communications at </p><p>48 per cent. </p><p><BR><BR> </p><p>He predicted that advertising would soon be overshadowed by its younger </p><p>cousins. </p><p><BR><BR> </p><p>"I think that marketing communications already outstrips advertising on </p><p>a general basis. For us, that hasn't yet happened, but it will do in the </p><p>near future," Mr Bungey told MEDIA. </p><p><BR><BR> </p><p>Cordiant's commitment to marketing communications is underlined by a </p><p>range of companies operating in this field such as 141 Worldwide, Fitch </p><p>and PSD. </p><p><BR><BR> </p><p>The group has also made its first venture into PR following the </p><p>acquisition of an Australian operation, PPR. </p><p><BR><BR> </p><p>Said Mr Bungey, "PPR will be developed in Asia. Hopefully, it will go </p><p>global over the next few years." </p><p><BR><BR> </p><p>However, he stressed that the advances made by marketing communications </p><p>have not been at the expense of advertising at Cordiant. </p><p><BR><BR> </p><p>Marketing communications, he said, was expanding at a much faster </p><p>double-digit rate, while advertising was growing at around six per cent </p><p>annually: "It's not a case of the pie shrinking. It is actually </p><p>growing." </p><p><BR><BR> </p><p>Mr Bungey said the emphasis on marketing communications came mainly from </p><p>the fact that clients were now embracing a whole host of communications </p><p>capabilities to build brands in an integrated and holistic manner. </p><p><BR><BR> </p><p>"Branding is one of the prime discriminators of similar products </p><p>produced and sold by many different companies. Take automobiles as an </p><p>example; there aren't any bad cars - some are good while others are </p><p>better, and so the only discriminator is how they are branded. </p><p><BR><BR> </p><p>"It is, therefore, a must to nurture and guard a brand. Unless </p><p>constantly fed, the brand will weaken. Companies recognise this. They </p><p>also recognise that they have many different ways in which to build a </p><p>brand," Mr Bungey said. </p><p><BR><BR> </p>