Agencies

Agency new business revenue is down year over year, report says

Though holding companies painted a rosier picture during Q2 earnings this summer.
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Madison Avenue new business teams aren’t exactly thriving this year, according to marketing consultancy R3’s July New Business League report.

If you look at the first seven months of 2022 compared to the same time period in 2021…

  • For the top 20 US creative agencies, new business revenue decreased over 50%.
  • Globally, the decrease was 26%.
  • Media agencies weren’t hit as hard, with US new business revenue decreasing 38% and 19% worldwide.

MediaPost attributed the decline to the general air of economic uncertainty in 2022, as well as 2021 YoY differences being generally hard to compete with post-lockdown.

During Q2 earnings, some holding companies shared how new business efforts fared during the first half of the year:

  • WPP brought in $3.4 billion in net new business, up from $2.9 billion during the same period last year. In its earnings call, CEO Mark Read said WPP had a “very solid group of wins across both our creative and our media business, probably a little bit more evenly split creative and media this year than compared to last.”
  • IPG CEO Philippe Krakowsky told investors the company remains “net new business positive” even with “increased volatility and growing caution due to macroeconomic concerns.”
  • Stagwell Chairman and CEO Mark Penn said the company is experiencing “a resumption of strong opportunities as companies prepare for the end of the year and a successful 2023” after seeing a “slowing of pitches in the beginning of Q2.”
  • Dentsu Group President and CEO Hiroshi Igarashi said the holding company’s creative reorg “saw 5x more inbound new business inquiries post launch compared to the two weeks prior to the launch.”
  • According to Publicis Chairman and CEO Arthur Sadoun, the company had “significant wins” in the first half of the year following “record gains in 2021.”—PB, MS
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