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Top 10: TV Buyers and Planners

3/02/2003 07:00:00 PM Eastern

Most of the money that pours into television flows through a handful of media agencies that help allocate the advertising dollars among media and then actually make the buys.

At a Glance
Total U.S. TV billings, 2001
Rank Agency Millions
*For 2002
1 Initiative Media $5,879
2 OMD Worldwide $5,239
3 MindShare $4,950
4 Universal McCann $4,100
5 MediaVest $4,057
6 Zenith Media $3,868
7 Starcom $3,008
8 PHD Network $2,642*
9 Mediaedge:cia $2,640
10 MediaCom $2,456

Here, Broadcasting & Cable identifies the top 10 TV spenders in the U.S. and the people who run them. Because not all the firms had 2002 figures ready by deadline, we rank them by 2001 totals. The exception is No. 8 PHD Network, a newcomer without 2001 figures. So for it, we report 2002 billings. We will give you a report on 2002 billings as soon as they can be gathered.

Based on the 2001 data, Initiative Media is the biggest TV spender, handing over $5.9 billion to the networks, syndicators and TV stations (spot TV). But it is No. 5 MediaVest that likes TV best, giving it 82% of the $4.9 billion it handled (see table, page 18).

Consolidation has hit the media-buying business: Each of the Top 10 is associated with one of five large multinational advertising and marketing firms, and nine have a corporate cousin on the list.

1 Initiative Media
U.S. TV billings 2001
$5.9B
1 Dag Hammarskjold Plaza
New York, NY 10017
212-605-7000
im-na.com
Initiative Media is a unit of the Interpublic Group of Companies, which also owns Universal McCann, the fourth-largest TV buyer. Magna Global is the negotiating arm of Initiative and Universal.
Alec Gerster, CEO
Carolyn Bivens, president/COO
Key U.S. TV executives: Tim Spengler, EVP/director of national broadcast
Kathy Crawford, EVP/director of local broadcast
Top Executives at Magna Global (negotiating arm): Ira Carlin, global chairman
Bill Cella, U.S. chairman
Major accounts: Home Depot, Bayer, Bell South, Coors
2002 in review: Interpublic Group's Initiative Media Worldwide got a new CEO in 2002: Alec Gerster succeeded Lou Schultz after a flurry of account losses, including $500 million in Disney business. But the company remains the top-ranked U.S. media buyer and did pick up a number of new accounts last year, including Quizno's sandwich chain, Quest Communications and GlaxoSmithKline. Initative is one of two big media buyers under the Interpublic Group of Companies, the other being fourth-ranked Universal McCann. The two units place their buy-orders separately, but the actual deals (how much they pay) are negotiated by co-owned Magna Global.
2 OMD Worldwide
U.S. TV billings 2001
$5.2B
11 Madison Ave., 12th floor
New York, NY 10010
212-590-7100
omd.com
OMD is a unit of the Omnicom Group, which also owns PHD Network, the eighth-largest TV buyer.
Joe Uva, president/CEO
Mark Amabile, CFO
Page Thompson, CEO, OMD North America
Top U.S. Executives: Jill Botway, managing partner, OMD East
Kathleen Brookbanks, managing partner, OMD Midwest
Monica Karo, managing partner, OMD West
Ray Warren, managing partner, broadcast
Key U.S. TV executives: Debbie Richman, U.S. director of national TV
Chris Geraci, director of natl. TV
Jeff Tyrrell, director of natl. TV
Cindy Clements, director of local broadcast
Major accounts: Universal, Nissan, Visa, Cingular, Apple, McDonald's, Clorox, Hershey, Pepsi, Office Depot
2002 in review: For OMD, 2002 was a year of global reorganization and major billings gains, as incoming CEO Joe Uva put his imprimatur on the company. OMD garnered $2.3 billion in new business and boosted net billings by $1.7 billion. Perhaps even more important than the billings gains, says Uva, "was the year that OMD came together as a true global network." In the U.S. OMD expanded beyond buying to integrate planning, research, digital media and other functions from co-owned BBDO.
3 MindShare Worldwide
U.S. TV billings 2001
$5.0B
825 Eighth Ave.
New York, NY 10019
646-756-4000
mindshareworld.com
MindShare is a unit of WPP, which also owns Mediaedge:cia, the ninth- largest TV buyer.
Irwin Gotlieb, chairman/CEO
Dominic Proctor, COO
Top U.S. executives: Marc Goldstein, president, national broadcast, and CEO, Mindshare USA
Ray Simko, president, strategic planning
Key U.S. TV executives: Jason Maltby, senior partner/managing director, national TV
Shari Cohen, senior partner/managing director
Richard Cotter, senior partner/director of local broadcast
Major accounts: 20th Century Fox, American Express, BP Arco/Castrol, Bristol-Myers, Domino's, Kodak, Ford., Gillette, IBM, Kimberly Clark, Mattel, Merrill Lynch, Sears, Unilever.
2002 in review: MindShare won more than $900 million in new business last year. The big get: some $600 million in worldwide media spending from Gillette previously shared by OMD and Universal McCann. MindShare also won $250 million in new business from Novartis, the drug marketer. The WWP unit netted $720 million in new business, according to account-tracking firm MediaAnalysisPlus. A management realignment saw Marc Goldstein elevated to CEO of MindShare North America, while Jean Pool, president of operations, resigned to join Universal McCann.
4 Universal McCann
U.S. TV billings 2001
$4.1B
622 Third Ave.
New York, NY 10017
646-865-5000
universalmccann.com
Universal McCann belongs to McCann-Erickson WorldGroup, a unit of the Interpublic Group of Companies, which also owns Initiative Media, the No. 1 TV buyer. Magna Global is the negotiating arm of Universal and Initiative.
Robin Kent, chairman/CEO/North America regional director
Key U.S. TV executives: Donna Wolfe, EVP/director of broadcast
Jean Pool, EVP/director of operations, North America/head of the LCI spot buying unit
Annette Cerbone, SVP/director of national broadcast
Top executives at Magna Global (negotiating arm): Ira Carlin, global chairman
Bill Cella, U.S. chairman
Major accounts: Sony, Johnson & Johnson, Coca-Cola, Nestlé, Wendy's, General Motors
2002 in review: Universal McCann nailed several big new accounts last year, including Sony Corp. of America ($600 million), Nestlé Purina ($375 million) and Maytag Corp ($100 million). The agency garnered $1.7 billion in new business overall, including $1.3 billion in media-only accounts. The firm had several senior-level executive changes last year—most important, of course, the addition of Robin Kent as chairman/CEO. In addition, Jean Pool joined as EVP/ director of operations for North America, while Alan Schulman signed on as SVP/creative director.
5 MediaVest
U.S. TV billings 2001
$4.1B
1675 Broadway
New York, NY 10019
212-468-4000
smvgroup.com
MediaVest and Starcom, the seventh-largest TV buyer, are the two media divisions of Chicago-based SMG Global, which is headed by CEO Jack Klues. SMG is a unit of the Publicis Groupe.
Laura Desmond, CEO
Renee Milliaressis, president, strategy
Mel Berning, president, U.S.
Ben Tucker, EVP/managing director
Ron Vazzamo, SVP/media director
Nancy Hale, SVP/media director
Bruce Goerlich, SVP/director of research
Dan Mattei, chairman, finance
Key U.S. TV executives: Mel Berning, president, U.S. broadcast
Maribeth Papuga, SVP, local broadcast
Major accounts: Kraft, Procter & Gamble, Paramount, Coca-Cola, Capital One, Mars, Avon, Ernst & Young, UBS Warburg
2002 in review: MediaVest had a solid 2002, with total billings close to $700 million, including a roughly $300 million gain in TV billings. New accounts included an $80 million Heineken account and a global account for United Airlines. The buying unit did lose some Burger King business, the result of the fast-food chain's consolidating its advertising with Interpublic Group. The ad buyer was consolidated itself last year: parent Bcom3 was acquired by Publicis. At MediaVest, a realignment had Donna Salvatore shifting from CEO to chief investment strategist and Laura Desmond replacing her.
6 Zenith Optimedia Group
U.S. TV billings 2001
$3.9B
299 W. Houston St.
New York, NY 10014
212-859-5100
zenithmedia.com
Zenith is a joint venture of Publicis Groupe (75%) and Cordiant Communications (25%)
John Perriss, CEO, Zenith Optimedia
Steve King, CEO Worldwide, Zenith Media
Top U.S. executives: Rich Hamilton, CEO, the Americas
Tim Jones, president, Zenith Media
Key U.S. TV executives: Peggy Green, president, national broadcast, Zenith USA
Bonita LeFlore, EVP/director of local broadcast, Zenith USA
Major accounts: General Mills, Schering-Plough, ExxonMobil, Toyota/Lexus, Verizon
2002 in review: With more than $900 million in new planning and buying business, last year was big for the Cordiant/Publicis-owned ad buyer. The big get in '02 was the $120 million Pillsbury account. Another biggie: the planning and buying assignment for Toyota's youth-targeted Scion division, which is launching in June. That's worth an estimated $60 million in billing, but, equally important, it's the first planning assignment received by Zenith from Toyota. "That's a hugely important launch for Toyota," says Zenith America's CEO Rich Hamilton. Hamilton adds that the Pillsbury and Scion coups (and a couple others) gave Zenith "an extremely good year" in 2002.
7 Starcom Worldwide
U.S. TV billings 2001
$3.0B
35 W. Wacker Dr.
Chicago, IL 60601
312-220-3535
www.smvgroup.com
Starcom and MediaVest, the fifth-largest TV buyer, are the two media divisions of Chicago-based SMG Global, which is headed by CEO Jack Klues. SMG is a unit of the Publicis Groups.
Renetta McCann, CEO, Starcom North America
Dan Albert, EVP/chief strategy officer
Mary Ann Foxley, EVP/chief investment officer
John Muszynski, EVP/chief broadcast investment officer
Kathy Ring, EVP/chief marketing officer
Lisa Donahue, EVP/media director
Karen Jacobs, EVP/media director
Major accounts: Coca-Cola, Kellogg, Sara Lee, McDonald's, Miller, Morgan Stanley, Phillip Morris, Procter & Gamble, Walt Disney
2002 in review: Starcom appeared to have a heck of year. The big get: a $500 million Disney account. The firm reports that it boosted U.S. TV billings by $1.2 billion in 2002, to roughly $4.2 billion. That ought to make its new owner happy; Publicis acquired Starcom parent Bcom3 around midyear. Driving the gain was a near doubling of the buying unit's spot-TV business to about $1.2 billion. Broadcast-network spending rose $400 million; cable spending grew $300 million. Officials attribute the growth to higher client spending and new business. The new ownership did cause some fallout: Maytag, for example, bailed after the Publicis acquisition because of a conflict with Whirlpool.
8 PHD Network
U.S. TV billings 2002
$2.6B
488 Madison Ave.
New York, NY 10022
212-840-2260
PHD is a unit of the Omnicom Group, which also owns OMD Worldwide, the second-largest TV buyer.
David Pattison, CEO Worldwide
Steve Grubbs, CEO North America
Top U.S. executives: Mickey Marks, president, PHD New York
Cindy Nelson, president, PHD Detroit
Don Stork, president, PHD St. Louis
Top U.S. TV executives: Harry Keeshan, EVP, national broadcast
Pat McNew, SVP, local broadcast
Major accounts: Daimler Chrysler, Discovery Networks, MGM, Charles Schwab, GAP, Reebok, Goodyear, Energizer, AIG
2002 in review: Co-owned with OMD by Omnicom, PHD underwent a major restructuring that increased its size dramatically last year. Omnicom shifted $1.5 billion -plus in DaimlerChrysler spending to the media buyer, bringing PHD's total billing up to the $4.5 billion range. That car spending had previously been under the BBDO Detroit umbrella. In addition, PHD North America named Steve Grubbs its new CEO. "Last year was basically a year of reconfiguring and relaunching PHD in the U.S.," he says. Next year's outlook: "I'm optimistic about the business and what looks to be growth of investment in advertising by our clients."
9 Mediaedge:cia
U.S. TV billings 2001
$2.6B
825 Seventh Ave.
New York, NY 10019
212-474-0000
Mediaedge.com
London-based Mediaedge:cia belongs to Young & Rubicam, a unit of WPP Group, which also owns MindShare Worldwide, the third-largest TV buyer.
Charles Courtier, global chairman
Mainardo DeNardis, global CEO
Top U.S. executive: Steve Lanzano, CEO, North America
Key U.S. TV executives: Rino Scanzoni, president of broadcast, U.S.
Maggie Ross, U.S. director of national broadcast
Major accounts: AT&T, Lincoln Mercury, Campbell's, Yum Brands, ChevronTexaco, Colgate, Dr. Pepper
2002 in review: A slow first six months was counterbalanced by a second half that reaped a number of new-business wins for the buying firm, says Steve Lanzano, CEO, North America. The big gets included ChevronTexaco ($100 million), Jaguar ($90 million) and Payless ($50 million). All told, the WWP unit nabbed a little more than $500 million in new business, which nets down to $400 million when account churn is factored in. Lanzano says a growing area for the firm is "econometrics modeling"—that is, analyzing clients' marketing budgets and determining how to realize the best return on their advertising investment.
10 MediaCom Worldwide
U.S. TV billings 2001
$2.5B
777 Third Ave.
New York, NY 10017
212-546-2100
mediacom.com
Mediacom is a unit of the Grey Global Group.
Jon Mandel, co-CEO/chief negotiating officer
Dene Callas, co-CEO/chief strategic officer
Key U.S. TV executives: Donna Speciale, EVP/director of national and local broadcast
Christine Merrifield, SVP/manager of national broadcast
Stacy Sullivan, SVP/manager of national broadcast
Peter Olsen, SVP/manager of national broadcast
Anne Elkins, SVP/director of local broadcast
Major accounts: GlaxoSmithKline, Hasbro, Warner Bros., LVMH, Subway, Staples
2002 in review: With the departure of Worldwide CEO Alec Gerster for Initiative Media, three top executives at MediaCom, the buying arm of Grey Global, moved up the corporate ranks in 2002. Replacing Gerster was Alexander Schmidt-Vogel, who had been chief operating officer. Dene Callas and Jon Mandel, who had been co-managing directors, were both promoted to co-CEO of MediaCom U.S. Account gets in '02 included Staples ($50 million), Botox ($40 million) and Dyson ($30 million). A setback included the loss of a U.S. Postal Service account valued by MediaAnalysisPlus at $130 million.

How the Top 10 Slice the TV Pie
(Billings in $million, U.S. only, 2001)
Rank Agency Total TV All Media TV/ All Media Broadcast Nets Broadcast/ Total TV Spot Spot/ Total TV Cable Nets Cable/ Total TV Syndication Syndie/ Total TV
*Figures are for 2002; 2001 figures are not available
Source: Agencies and Broadcasting & Cable research
1 Initiative Media Worldwide $5,879 $10,100 58% $2,194 37% $1,971 34% $1,516 26% $198 3%
2 OMD Worldwide $5,239 $7,640 69% $2,881 55% $1,240 24% $879 17% $239 5%
3 MindShare Worldwide $4,950 $8,500 58% $2,515 51% $1,450 29% $770 16% $215 4%
4 Universal McCann $4,100 $6,100 67% $1,700 41% $1,500 37% $712 17% $184 4%
5 MediaVest $4,057 $4,922 82% $1,825 45% $736 18% $1,038 26% $458 11%
6 Zenith Optimedia $3,868 $5,300 73% $1,362 35% $1,977 51% $450 12% $79 2%
7 Starcom $3,008 $4,636 65% $1,346 45% $612 20% $740 25% $310 10%
8 PHD Network* $2,642 $3,670 72% $770 29% $1,395 53% $367 14% $110 4%
9 Mediaedge:cia $2,640 $4,100 64% $1,200 45% $823 31% $500 19% $116 4%
10 MediaCom $2,456 $3,600 68% $1,121 46% $481 20% $633 26% $224 9%
Total $38,839 $58,568 66% $16,914 44% $12,185 31% $7,605 20% $2,133 5%
March