Methodology

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This report defines marketing services as sales promotion and direct marketing. Agencies are ranked by the the sum of revenues generated from these two specialties unless the sum is 75% or greater of the total agency gross income. In such cases the marketing services number is replaced by the agency gross income number, excluding internal operations.

The total U.S. agency revenue column does, however, include internal operations. Internal operations typically include printing, database, digital imaging and internal telemarketing.

Among the 216 agencies ranked, 62 have both services, with 89 with only direct, and 65 with only sales promotion.

Total agency revenue is listed to enable the reader to place the agency's specialty components in perspective.

Divisions of agencies actually may be the "agency" listed if the parent's specialty is largely consolidated into that operation. Where divisions are identified as the agency, total agency revenue is that of the division and not the agency.

If an agency is part of an ad organization, basically a holding company parent, that organization appears in brackets next to its name on the chart. If the agency is also part of an agency network, the network is shown in parentheses.

Interactive revenues may be included in revenues for either speciality, although they largely are in direct.

Agencies provided marketing services data on Advertising Age's Agency Report questionnaire. The Agency Report was published April 22.

Revenue is the sum of fees plus the commissions earned from media billings and the mark-up on materials and services, the latter often called gross margin (i.e. net sales less cost of sales).

The notations "PM" or "PS" identify how sales promotion agencies derive their promotion revenue.

"PM," or promotional marketing agencies, provide an array of services but are identified by strength in fee-based activities such as strategic planning, concept development and consulting. "PS," or promotional services agencies, draw most of their revenues from tactical and executional services, i.e. couponing, games and sweepstakes.

ACQUISITIONS

Acquisitions continue to change the composition of the charts. Ad Age seeks to maintain the integrity of its chart entries from year to year by treating an acquisition as if the purchase were on the books for two consecutive years.

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