About Ad Age's Agency Data
The earliest Advertising Age data ranking agencies dates from 1943. Rankings initially appeared as the Agency
Billings Report, then Agency Gross Income Rankings and most recently as the Agency Report.
Data on this site begin with the 1998 edition, which includes figures for 1996 and 1997.
Multi-tiered rankings
Agencies and agency companies are ranked on several levels.
Agency companies (sometimes holding companies) are the top level. This level may include independent agencies if
they are of sufficient size.
Consolidated agency networks are the second level. These generally are branded, multinational networks, owning shops
offering a variety of services.
The third level ranks agencies (or agency brands), often by discipline and without regard to the sibling shops in
the same ranking.
A consolidated agency network may share the same name as an agency brand. But in the agency brand level,
subsidiaries are stripped out of the network so that each each branded shop has an opportunity to be ranked. This
offers a more granular level of analysis.
Rankings by discipline and the 75% rule
Digital, search, direct, promotion, media, African-American, Hispanic, Asian, healthcare--all of these specialties
are of interest to Ad Age readers.
To keep rankings as equitable as possible, Ad Age uses the following rule: If an agency produces 75% or more of its
revenue from a specific discipline, it will be shown ranked at 100% of its revenue in that specialty ranking. If
revenue from the discipline is less than 75%, the agency will be ranked only by the percentage of its revenue
produced by work in that specialty.
Overlap by discipline is allowed. For example, a 100% digital agency may have revenue from search representing only
25% of its total. The agency would be ranked among digital shops at 100% of its revenue. Among search-marketing
agencies, the agency would only qualify to be ranked at 25% of its revenue.
Surveys
Rankings are based on Ad Age's widely distributed surveys of advertising agencies. Agencies are asked to provide Ad
Age with revenue figures, employee data, specialties, clients lists and more.
From these surveys, agencies are ranked in many categories including multicultural, healthcare, and in some years,
media billed.
However, in response to the 2002 Sarbanes-Oxley Act, many publicly traded agency companies declined to disclose
financial information by agency beyond what they published in annual reports, the Form 10-K and other public
documents and filings.
Beginning with the 2003 edition, Ad Age editors estimated the revenue figures by agency for these companies. In most
cases, when agency estimates appear in rankings, the agency name is accompanied by an asterisk.
Here's the most recent
Ad Age Agency Report Questionnaire.
Revenue (or Gross Income) versus Billings
Early reports ranked agencies by capitalized billings, essentially the addition of three components: 1) costs for
media space and time bought by the agency, 2) costs for materials and services charged to the client (including the
markup) and 3) any flat fees charged by the agency, multiplied by 6.67 (the inverse of 15%, the assumed media
commission paid to agencies at the time). This was sometimes known as volume, but most commonly know as just
billings.
Subsequent studies began to include what were sometimes called non-traditional agencies--companies offering direct
marketing, promotion and other services. Because the companies tended not to buy media, the idea of capitalized
billings became unwieldy. (These agencies did business on a fee or revenue basis. The process of "grossing up" those
fees, so they might be akin to media billings, made it difficult to produce accurate and equitable rankings.
Moreover, agencies either began to buy media for clients for a fee on a pass-through basis or, with the emergence of
media specialist agencies, not buy or plan media at all.
Ad Age began ranking agencies by revenue (then called gross income) in 1972. The three components of revenue/gross
income are 1) the commission on media, 2) the markup on materials and services and 3) flat fees charged to the
client.
Media Specialists
Media buying and planning duties migrated from ad agencies to media specialist agencies during the 1990s. The first
ranking of media specialist agencies was published in Ad Age April 19, 1999 in that year's Agency Report.
Early media specialist rankings were by billings and after 2002 were based on data from RECMA, a Paris-based
research company. Beginning with the 2008 edition of the Agency Report, these rankings are by revenue and based on
Ad Age estimates or agency reporting.
Marketing Services Agencies
Ad Age first ranked direct marketing agencies (at times referred to as direct response) March 26, 1987 in the Agency
Report (however Ad Age published rankings of direct shops as early as April 16, 1984 from the DMA); sales promotion
agencies were first ranked April 4, 1988; digital agencies (initially called interactive agencies) July 26, 1999;
and search agencies Nov. 6, 2006 in the Search Marketing Fact Pack.
These specialized agencies over the years began to merge, combine disciplines and offer other services such as event
planning, customer relationship management and in-store marketing. Sometimes known as marketing services agencies,
ranked agencies are now incorporated within Ad Age's annual Agency Reports.
Agencies Outside the U.S.
Rankings of agencies outside the U.S began April 27, 1959 with 72 shops, all listed in a single table.
Later rankings showed agencies by country.
At their peak in 2002, these rankings included more than 1,500 agencies in 124 countries. By this point, at least
one-third of agencies ranked in the international report were owned by or affiliated with large agency holding
companies. In reponse to Sarbanes-Oxley, many public companies in recent years have declined to provide detailed
financial data. Ad Age published the last of these reports in its print edition April 22, 2002.
A little about Ad Age and the Crain Information Centers
And how to get help with research