Media agencies report 350m euros in 2007 turnover

The ten most important media agencies in Romania reported last year a turnover worth some 351 million euros, representing the advertising budgets of the customers managed by them.
In 2007, the ten agencies managed about two thirds of total investments in advertising, which were of some 500-550 million euros. The net profit amounted to some 10 million euros. The very high difference between turnovers and net profit is explained by daily Ziarul Financiar through the fact that the media agencies circulate the money for advertising, which finally reach various media agencies.
The biggest volume of business was reported by Zenith Media, which bought advertising space worth 54.5 million euros, up 50% as against 2006. Among the agency's biggest customers are L'Oreal, ING, Toyota and Ursus Breweries. For 2008, Maria Tudor, managing director of the agency, estimates a rise of 30% in turnover.

At about 2 million euros difference compared to Zenith Media is Universal McCann, the media division of McCann Erickson, the main communications group on the local market. The company reported last year a turnover of 57.8 million euros, with media budgets worth some 52 million euros. For this year, the company's management stakes on a rise of 40% in turnover. The biggest accounts managed by Universal McCann are Coca-Cola, Vodafone, Heineken and SC Johnson. After Universal McCann on the third and fourth places are the agencies Initiative Media and Media Direction.
Although the advance in turnover is important, equivalent to winning new customers and the increase in the budgets of older customers, for managers, the profit is much more relevant. "You may have higher budgets and circulate more money, but it is important what revenues you have," said a manager for the aforementioned publication. Most agencies are included in international companies which impose rises of some 15% a year.
In 2007, the most profitable company was Media Investment, the only agency of top ten which does not belong to any international group. Last year, Media Investment reported net profit worth 3 million euros.
If in 2007 no significant changes were reported in the ranking, at the end of the year the hierarchy might be different, because in the first months of the year many customers changed their media agency.
According to daily Ziarul Financiar, among the most important causes of the change in budgets are the rise prices for the acquisition of commercial space, international alignments and the finalization of contracts.
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