Profile from the 2007 Agency Report

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6 Havas
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Notes: Havas has three operating groups: New York-based Euro RSCG Worldwide, the global advertising and marketing services network; Barcelona-based MPG, the global media buying and planning network; and Boston-based Arnold Worldwide, a U.S. advertising and marketing services agency. The Arnold Worldwide Partners (AWP) network, encompassing Arnold Worldwide and a group of integrated marketing services companies throughout the world, was dissolved in 2006. The network, founded in 2000, was a creative network for regional clients and considered an alternative network to Euro RSCG, but it never really established itself. Havas reported net income of $57.5 million in 2006, down 21.3%, on revenue of $1.84 billion in 2006, up 1.8%--the first time annual revenue had advanced since 2001. Havas reported that 0.6% of the revenue growth (in euros) was organic. The marketing organization was buttressed by a sharp rise in net new business (net account gains expressed in estimated annual billings) of $2.41 billion vs. $1.31 billion in the prior year, according to a study by Lehman Brothers that placed Havas No. 1 in net new business gains among the world's largest marketing organizations. Havas also took first in Bear, Stearns & Co.'s 2006 adjusted net new billings race with a gain of $883 million in "adjusted" billings, a ranking that reduces media accounts to 25% of reported billings to more closely correlate with anticipated revenue (hence, the "adjusted" moniker). Adjusted net new billings translated to an expected annualized revenue gain of $106 million, said Bear Stearns. A number of big profile clients gained in 2006 include Reckitt Benckiser, Sanofi-Aventis and French mobile-phone network SFR. A U.K. brokerage firm, Collins Stewart, was publicized in 2006 as saying Havas has been price discounting to win business, a charge rejected by Havas non-executive Chairman Vincent Bollore as "ridiculous." Mr. Bollore in October 2006 played a hand in the defection of three top executives from rival Publicis in Paris when he financed 30% of their new agency Fred Farid Lambert. The Fred and Farid of the name are Fr�d�ric Raillard and Farid Mokart, who ran Publicis' creative boutique Marcel, founded in 2005. The other principal, Christophe Lambert, headed Publicis Conseil. Mr. Bollore attempted three times in the past year to gain two board seats on Aegis, a competitor in the media specialist field, but was rebuffed on each attempt. Aegis claims his attempt to insinuate himself on the board represents a conflict of interest. He owns 29% of Aegis's stock. Havas' own media specialist unit, MPG, in October 2006 united its various media agencies under the Havas Media umbrella, now represented in 93 countries. Operations include: MPG (the global media network), Arena (a network for tailor-made communications services), Media Contacts (online and digital network), Havas Sports (sports marketing) and B6 Integrated Entertainment (branded entertainment). Havas in July 2006 terminated its American Depository Receipts program and delisted its shares traded on Nasdaq. Havas made the move after Nasdaq noted the company had not complied with the exchange's audit committee requirements resulting from the resignations of Laurence Parisot, Michel Boutinard Rouelle and Pierre Bouchut from its board and audit committee. The company also noted it delisted because its liquidity wasn't sufficient to cover the cost and administrative burden required by the listing. Shares remain traded on the Euronext market in Paris. Havas in July 2006 named Richard Pace chief performance and economic officer and Esther Gaide deputy financial director, both serving at the Paris headquarters. Mr. Pace is charged with improving profitability and efficiency. Perhaps to keep key client Peugeot's Citroen account, Havas in September 2006 agreed to buy back Scher Lafarge, a shop Citroen had reportedly shown interest in. Scher Lafarge split off from Havas in 2001. According to French press reports, Citroen at the time had been unhappy with Havas. Havas is gearing up for an acquisition. The agency holding company raised $354 million in November in a sale of bonds to repay debt in 2009, but between now and then, those proceeds have formed an acquisition pot to purchase advertising companies, according to top execs at Havas.
Top executive: Fernando Rod�s Vil�, CEO
Headquarters: Havas/2 allee de Longchamp, Suresnes, France F92281/Phone: 33-1-58 47 90 00/Fax: 33-1-58 47 99 99/URL: www.havas-advertising.com

An asterisk (*) indicates figures are Ad Age estimates.

Traditional agencies

Havas Advertising Agencies*
Agency totals
Revenue ($ in millions)20062005% chg
Notes: Havas Advertising Agencies is an Ad Age construct and represents the estimated totals of Havas' advertising operations.

Archibald Ingall Stretton*
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Offices20062005% chg
Notes: Archibald Ingall Stretton is a creative agency in London. The agency is autonomous within Havas, which owns 40% of the unit. Its accounts include BMW, Moet Hennessy, Skoda and O2.
Top executive: Stuart Archibald/Jon Ingall, mg ptnrs
Headquarters: Archibald Ingall Stretton / Berners House, 47-48 Berners St., London, W1T 3NF / Phone: 44-207-467-6100 / Fax: 44-207-467-6101 / URL: www.archibaldingallstretton.com

Arnold Worldwide*
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Offices20062005% chg
Notes: Arnold Worldwide Partners, of which the lead agency has always been Boston-based Arnold Worldwide, was dissolved earlier this year by Havas. The dissolution eliminated the international network of six agencies. Under the reorganization plan, AWP's French offices and Arnold's Montreal and Toronto offices now report to Havas. AWP's offices in Italy, Australia and Spain were placed under Euro RSCG Worldwide. These overseas shops collectively generated about $72.8 million in revenue in 2005. These numbers as well as 2006 estimates were moved into other Havas units. The network, formed in 2000, was largely a collection of creative agencies who had few shared clients. This profile is the traditional agency work of full-service agency Arnold Worldwide with offices in Boston, New York and Washington (McLean, Va.). Not included in financial returns shown here are Arnold's marketing services units--Arnold One (direct and interactive), Arnold Brand Promotions (sales promotion) and Arnold Communications (PR)--which appear elsewhere in the Havas agencies. Arnold, the agency, consolidated more of its U.S. operations in Boston in 2006. It shuttered its St. Louis office, moving work for Brown-Forman Corp., that office's primary account, to the Boston main office. The agency also closed its Los Angeles shop, which primarily serviced Volkswagen of America, an account the agency lost in late 2005. The LA office also served as Arnold's entertainment division, a discipline also moved to Boston. In March 2006, Arnold made key management changes: Fran Kelly became CEO of Arnold U.S., a title held by Ed Eskandarian. Mr. Kelly had been president-COO. At the same time, Ron Lawner was named vice chairman and global chief creative officer of AWP. Mr. Lawner then left the beginning of 2007. His departure was not unexpected as Arnold in March 2006 named one of his longtime associates, Pete Favat, CCO in charge of guiding the shop's creative output. Arnold's Boston lead shop was turned over to Pam Hamlin, president, and Mary Maroun became president, managing director of Arnold New York, succeeding Fran Kelly. Ms. Maroun came to Arnold from Y&R where she was managing partner Y&R North America. Arnold cut staff 11% in the U.S. in 2006, primarily to account for the loss of the VW business. Arnold got back into cars in April 2007: Ford's Volvo Cars named Arnold Worldwide, Boston as its new global creative agency of record after a five-month review. Arnold teamed with independent Nitro, London, in the pitch. Sibling Euro RSCG formerly handled Volvo, so Arnold's win kept Volvo inside parent Havas.
Top executive: Fran Kelly, pres & CEO-Arnold WW
Headquarters: Arnold Worldwide / 101 Huntington Ave., Boston, Mass. 02199 / Phone: (617) 587-8000 / Fax: (617) 587-8004 / URL: www.arnoldworldwide.com

Euro RSCG Latino*
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Offices20062005% chg
Notes: Euro RSCG Latino is an integrated full-service agency specializing in the U.S. Latino market with 25 core employees based in New York. The shop works with many of Euro RSCG Worldwide's other offices particularly Mexico, Puerto Rico and Chicago.
Top executive: Gustavo Razzetti, CEO
Headquarters: Euro RSCG Latino / 350 Hudson St., New York, N.Y. 10014 / Phone: (212) 886-4100 / Fax: (212) 886-4602 / URL: www.eurorscglatino.com

Euro RSCG Worldwide*
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Non-U.S. 7,321 7,202 1.7
Offices20062005% chg
Notes: Havas reorganized Euro RSCG Worldwide in April 2004, linking all but media buying and planning (MPG functions) and Arnold Worldwide and agency McKinney to the flagship network. Euro RSCG Worldwide gained two divisions in the restructuring: Euro RSCG 4D, a marketing services division, and Euro RSCG Life, a healthcare division. Euro RSCG's advertising element in the U.S. is now shared by Euro RSCG Worldwide-New York, Euro RSCG Worldwide-Chicago, Euro RSCG Worldwide-San Francisco and Euro RSCG Latino. Also, reporting to Euro RSCG is the PR unit, Euro RSCG Magnet. A DRTV and Tonic, a consumer healthcare unit, also are part of Euro RSCG Worldwide. Euro RSCG Worldwide has 233 offices in 75 countries. Euro RSCG Worldwide was named Global Agency of the Year by Ad Age, based largely on its strong account-winning acumen. The agency has gained since early 2006 clients on a global basis: Sanofi-Aventis, Reckitt Benckiser, Boehringer Ingelheim, Orange (B2B), and ExxonMobil in the U.S., Veolia and RATP et Natixis in France, LG Electronics in 11 South American countries, six on a pan-European basis, and Barclays in Great Britain. Revenue for 2005 was restated by Ad Age.
Top executive: David Jones, global CEO
Headquarters: Euro RSCG Worldwide / 350 Hudson St., New York, N.Y. 10014 / Phone: (212) 886-2000 / Fax: (212) 886-2016 / URL: www.eurorscg.com

Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Offices20062005% chg
Notes: McKinney, founded in 1969, is a traditional ad agency based in Durham, N.C. It became part of Havas in early 2002 when the marketing organization acquired a majority of the agency, and is an independent operating unit within Havas. McKinney suffered several high-profile account losses in 2006: Sony Electronics, Audi of America, a 13-year acount, and Longhorn Steakhouse. The agency won Select Comfort and Southern Comfort in 2006 and Virgin Mobile USA in early 2007. Jeff Jones became president in April 2006, succeeding Brad Brinegar, who remains CEO and gains the chairman post. Mr. Jones was VP-global marketing at Gap. Also in April, McKinney combined three strategic disciplines--account planning, connection planning and interactive strategy--into one strategic offering under Andrew Delbridge, chief strategy officer and previously executive director, account planning.
Top executive: Brad Brinegar, chmn & CEO
Headquarters: McKinney / 318 Blackwell St., Durham, N.C. 27701 / Phone: (919) 313-0802 / Fax: (919) 313-4280 / URL: www.mckinney-silver.com

Integrated marketing agencies

Havas Marketing Services*
Agency totals
Revenue ($ in millions)20062005% chg
Notes: Havas Marketing Services is an Ad Age construct and represents the estimated totals of Havas' marketing services operations.

Arnold Worldwide (MS)*
Agency totals
Revenue ($ in millions)20062005% chg
Notes: Arnold Worldwide Marketing Services is an Ad Age construct and represents the estimated totals of Arnold's marketing services operations, units that report through the same P&L as advertising. Among these operations are Arnold One, a direct and interactive division headed by Scott Savitt, who replaced Greg Johnson in 2006, and Arnold Brand Promotions, a sales promotion entity headed by Michael Carey, who replaced Beth Rice in 2006.
Top executive: Karen Driscoll, dir-opers & mg ptnr
Headquarters: Arnold Worldwide (MS) / 101 Huntington Ave., Boston, Mass. 02199 / Phone: (617) 587-8000 / Fax: (617) 587-8070 / URL: www.arnoldworldwide.com

Euro RSCG 4D
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Non-U.S. 2,150 3,500 -38.6
Notes: Euro RSCG 4D, created in a Havas reorganization in early 2004, includes most of Euro RSCG's nontraditional businesses covering direct, digital, promotion, retail, data, telemarketing and DRTV. Jeff Brooks became CEO of 4D in 2006, overseeing its operations in New York, Boston, and Wilton, Conn. He came from Atmosphere BBDO and replaced Charlie Tarzian, who resigned in April 2006 and the following month became involved in a suit/countersuit with 4D for allegedly recruiting clients and 4D employees to a venture, Last Mile, he set up in 2005. Revenue for 2005 was restated by Ad Age.
Top executive: George Gallate, global CEO
Headquarters: Euro RSCG 4D / 350 Hudson St., New York, N.Y. 10014 / Phone: (212) 886-2000 / Fax: (212) 886-2016 / URL: www.eurorscg.com

Healthcare agencies
Euro RSCG Life*
Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Non-U.S. 334 212 57.5
Offices20062005% chg
Notes: Euro RSCG Life is the name for the Havas healthcare agencies division that in the U.S. consolidates Euro RSCG Life Becker, Euro RSCG Life LM&P and Lena Chow Euro RSCG. The network has 44 offices in 16 markets. Euro RSCG Life is unified by one management structure and a single P&L. This Euro RSCG Worldwide division offers advertising, PR, event promotion, medical education, consumer advertising, interactive and consulting services. Euro RSCG Life gained Havas' third largest account in November 2006 when it won the thrombosis drugs Lovenox and Clexane and diabetes drugs Lantus and Apidra from Sanofi-Aventis. Euro RSCG C&O also got the corporate communications business. The U.S. shops of Euro RSCG Life, each prefaced with the EURO RSCG Life moniker, include Adrenaline, Brand Machine, Chelsea, Genecom, Interaction, LM&P, MetaMax, Medical Education, Media Planning Center, PR and StratStar, all New York, and Central in Chicago and Cytocom in Trevose, Pa. Revenue for 2005 was restated by Ad Age.
Top executive: Doug Burcin, co-CEO-North America
Headquarters: Euro RSCG Life / 200 Madison Ave., 9th Fl., New York, N.Y. 10016 / Phone: (212) 532-1000 / Fax: (212) 213-0449 / URL: www.eurorscglife.com

Media specialist agencies
Havas Media Specialists*

Agency totals
Revenue ($ in millions)20062005% chg
Employees20062005% chg
Non-U.S. 2,289 2,129 7.5
Offices20062005% chg
Notes: MPG, shortened from Media Planning Group, is the media specialist operations of Havas. Maria Luisa Francoli became CEO at MPG in September 2007, when Alfonso Rodes Vila, previous CEO, moved up to head Havas Media, which oversees all of Havas' media companies, which in addition to MPG, includes Arena, Media Contacts, Havas Sports and B6 Integrated Entertainment. B6 Integrated in June 2006 began a partnership with Meteor Worldwide, a Hollywood branded entertainment company, to create branded content in Universal projects for 16 MPG clients, including PSA, France Telecom, Nike, Reckitt Benckiser and Danone. MPG was created in 1999 as the merger of Media Planning, founded in 1978, and Mediapolis, founded in 1980. Non-U.S. revenue for 2005 was restated by Ad Age. Revenues are estimates based on projected billings from Recma.
Top executive: Charlie Rutman, CEO-North America
Headquarters: MPG / Dr. Fleming 17, Barcelona, Spain 08017/10007 / Phone: 34-93-306-89-00 / Fax: 34-93-414-72-13 / URL: www.mpg.com
U.S. Headquarters: MPG / 195 Broadway, 12th Fl., New York, NY. 10007 / Phone: (646) 587-5000 / Fax: (646) 587 5005 / URL: www.mpg.com

Public relations agencies
Euro RSCG Magnet*
Agency totals
Employees20062005% chg
Offices20062005% chg
Notes: Euro RSCG Magnet is a PR agency involved in corporate communications, investor relations, financial services, healthcare, consumer and technology among sectors. The New York-based agency has offices in Washington, Chicago, San Francisco, Pittsburgh and Corona, Calif. John Margaritis was promoted to chairman of the Americas in April 2006, from executive director. At the same time, Lisa Sepulveda became CEO, joining the PR firm from Edelman Public Relations where she had been managing director, global consumer health. Magnet is the result of the merger in January 2004 of PR tech specialist Euro RSCG Middleberg and Magnet Communications.
Top executive: John Margaritis, chmn-Americas Euro RSCG & ww PR
Headquarters: Euro RSCG Magnet / 110 Fifth Ave., 6th Fl., New York, N.Y. 10011 / Phone: (212) 367-6800 / Fax: (212) 367-7154 / URL: www.magnet.com
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