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.
