MARKETING SERVICES;ISSUE METHODOLOGY

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The following methodology applies to the separate rankings of direct response and sales promotion agencies:

Direct response

To be ranked on this chart by total revenue, an independent agency or division must generate at least 75% of its 1994 U.S. total revenues from direct response.

When direct response activity falls below 75% of returns, the ranking is based only on revenue isolated as direct response.

For the chart's largest agencies, however, rankings apply only to actual DR returns regardless of percentage.

Within the chart is a subranking (the third of three ranking columns) that in effect re-sorts the main ranking by eliminating the portion of revenue coming from internal operations such as printing, database and internal telemarketing. This column is for 1994 only. AA also does not capitalize internal operations when providing capitalized billings (i.e. volume) from which revenues were generated.

Because many agencies charted are involved in non-direct response activities, that activity is accounted for in a column identifying total agency U.S. revenue. For agency divisions, this column represents the totals for the division if it bears a name distinct from the agency; otherwise, the larger agency totals are shown.

Because some of the top U.S.-based direct response agencies have non-U.S. returns, AA has prepared a separate chart ranking the top 10 U.S.-based direct response agencies by worldwide revenue.

Sales promotion

An agency is ranked on this chart by its total returns if sales promotion represents 75% or more of its 1994 U.S. revenue. If less than 75%, an agency is shown only by its returns from sales promotion.

For the chart's largest agencies, rankings apply only to actual sales promotion returns regardless of percentage.

The shops are further delineated as either promotional marketing or promotional service agencies, and ranked within these two camps by their 1994 revenues.

Promotional marketing agencies provide an array of services but are identified by their strength in the planning sequences, fee-based activity that must account for at least 30% of total revenue.

Promotional services agencies pull most of their revenue from tactical and executional services, such as sweepstakes and games, merchandising, premiums/incentives or fulfillment.

Direct response returns at sales promotion agencies are presented as a percent of total revenue in a column on the sales promotion chart. It is the sales promotion shop that has stimulated much of this crossover activity.

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