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Penny Machines

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

Ogilvy Group

Ogilvy & Mather

Report by Miles Young (below)
Chief executive officer

Miles Young

I subscribe to the Chinese view that ‘crisis’ spells opportunity: and that “when the going gets tough, the tough get going.”

It put into relief the basic reason we are in business – to produce superb work for our clients which is outstandingly effective – great work that works. Sometimes, years of growth dull the edges of such simplicity. But driven by this mantra, we spent the year laying the groundwork for a formidable bounce back.

Despite all the circumstances, we showed that we were a feisty business with winning ways. In this industry there was just one large global pitch in 2009, for UPS. We won this business in September, the culmination of months of effort. We are proud to have a brand like UPS, with a wonderful heritage and an ambitious future, join our portfolio of clients.

One of the reasons for this success is that our 360 business model – offering ‘deep integration’ at a strategic level – was able to leverage creative, planning, digital, analytical, and executional assets in a way which addressed the deeper business problem, not just a ‘communications’ lens of it. By the end of the year our North American business triumphed in two other major pitches – for CDW and Citizens Bank. In each case, the same lessons applied.

Two other clients deserve special mention in 2009. IBM, thanks to its own visionary leadership, provided the platform for the acclaimed Smarter Planet program. This body of work breaks new ground in many ways, building a digitally-enabled system of content which roots communication at the center and not at the periphery of the company’s value system.

Coca-Cola was our fastest-growing client in 2009, awarding us multiple assignments, at the center and in markets around the world. Our work for them is fresh and at the edge of cultural insight and expression.

In 2009 we appointed new leaders who are writing Ogilvy’s next chapter. Tham Khai Meng moved from Singapore to our global headquarters in New York to take on the role of worldwide creative director: we share the same office. Gloria Gibbons and Donna Tuths were appointed joint worldwide CEOs of Ogilvy Healthworld. Chris Graves stepped into Marcia Silverman’s role as CEO of Ogilvy Public Relations in January 2010, while Marcia Silverman took on the new role of chair. PRWeek named Ogilvy PR as an agency to watch in 2010, citing that Chris Graves “will lead the firm into a new era that can provide integrated programs for global clients who need them”. John Shaw and Colin Mitchell were named joint worldwide planning directors, and Tim Broadbent was appointed effectiveness director. Marie Claire Barker was named chief talent officer. John Seifert now runs Ogilvy North America. Carla Hendra is heading up our new Global Strategy & Innovation Practice. Gustavo Martinez relocated from Mexico to New York to be our first global new business director. What is gratifying is that none of these leaders is new to Ogilvy. They have continuity and carry on our culture, even as we gain from their new energy and insight.

People are the only important asset in this industry. And now, more than ever, our business requires people who really understand integration, who ‘get’ the new paradigms of content that are emerging, and who have experience in different disciplines. Fortunately, as a 360 degree agency, we have a very high share of these people. But in the past year we managed to attract and hire additional world-class senior talent in management, in creative, in digital and in strategic planning in particular who will help us drive the business forward.

Around the world, we approached the recession proactively by responding with targeted new offerings. Launched in 2008, our Recession Marketing Practice continued to give practical counsel to our clients on how best to cope as the recession gathered force in 2009, and helped them plan for recovery; and its publications have been praised for establishing industry leadership in this area.

We launched OgilvyEarth, a first-of-its-kind global sustainability practice. It is driven by an outstanding team from around the world, representing advertising, public relations, interactive, activation, entertainment and other of our disciplines. It has helped companies such as BP, Coca-Cola, DuPont, Qantas and Tetra Pak develop a vision of sustainability that drives business results.

Our Global Strategy & Innovation Practice, launched in January 2010, was created specifically to offer clients multidisciplinary strategic services that combine creativity with rigorous effectiveness. We seek to raise our client engagement beyond just producing solutions, to the level of diagnosing and solving business problems.

We launched a global data practice, headed by Dimitri Maex, which is driving our ambition in ‘data’. This is now one of our fastest-growing specialties. Our Digital Labs around the world continue to create breakthrough campaigns and applications in all areas of digital. From a ‘stealth’ mobile phone application audible only to people under 25 to help Fanta engage its teenage customer base, to using augmented reality to help Lenovo sells laptops to Chinese college students, to hosting an ‘Outernet’ conference that brought together the foremost experts in digital out-of-home and point-of-sale technology, we are helping clients stay at the leading edge of digital technology.

All of this depends, of course, on creativity. After all, David Ogilvy founded this business as a creative business, first and foremost. In 2009, with a full-time worldwide creative director, we have made good progress.

One very noticeable example was the high profile we gained through our 360 degree campaign to promote the United Nation’s Copenhagen climate change summit in December 2009. ‘Hopenhagen’ made an impact not just there, but with our peers in the global creative community.

open quoteWe seek to raise our client engagement beyond just producing solutions, to the level of diagnosing and solving business problemsclose quote

When you do great work, the industry notices and responds. Our creative teams captured a major share of the world’s awards for creative excellence and marketing effectiveness: 40 London International Awards; 31 Cannes Lions; 19 Clios; 16 DMA Echoes; seven One Show Pencils; and 71 Effies for our work in multiple countries as diverse as Australia, Dubai, Ecuador, France, Guatemala, Hong Kong, India, Malaysia, Mexico, New Zealand, Peru, Poland, Ukraine, the US, Uruguay, Singapore, Spain and Sri Lanka.

Our leadership in many of the world’s developing and fast-growing markets is corroborated by the various industry analysts in these regions. Ogilvy & Mather Asia Pacific was the most-awarded agency in the region, according to the first-ever Asia Pacific Gunn Report. Ogilvy India was voted the No.1 creative agency in the region by Brand Equity Ad Agency Reckoner and named Agency of the Year at the India Effie Awards. Ogilvy & Mather Thailand was named Agency of the Year at Spikes Asia. Marketing magazine named Ogilvy & Mather Singapore Creative Agency of the Year and bestowed quadruplet honors to Ogilvy Hong Kong as Creative Agency of the Year, Digital Agency of the Year, Direct Marketing Agency of the Year and PR Agency of the Year.

In Latin America, our offices in Mexico, Honduras, Puerto Rico and Panama were singled out as Agency of the Year by key industry organizations in their countries. At the Eurobest Festival, Ogilvy & Mather Paris was named European Agency of the Year. OgilvyOne Portugal was given the same honor at the 2009 SAPO Awards, Portugal’s specialist digital communications awards festival. Ogilvy Germany was named Agency of the Year by German DDP dialogue marketing award show for the fourth consecutive year.

AdFocus named Ogilvy Johannesburg 2009 Advertising Agency of the Year, and Ogilvy Africa African Agency Network of the Year. Ogilvy Johannesburg was also named Gauteng Agency of the Year at the 2009 AdReview Awards.

open quoteAs I look to 2010 and indeed to the next decade, I am full of confidenceclose quote

OgilvyOne Worldwide was named Direct Agency of the Year for 2009 by BtoB magazine. Ogilvy Public Relations was named Large Agency of the Year at the PRNews Platinum PR Awards and Asia Pacific Network of the Year by the Asia Pacific PR Awards.

It is perhaps not surprising that one of our success stories in 2009 was RedWorks. In creating this as a ‘production dependent’ we have arrived at a recipe which clients find very compelling. Utilizing low-cost hubs in locations like Bangladesh, Argentina and Slovakia, as well as other WPP offerings, RedWorks has delivered significant cost savings to many of them.

It provides all the cost benefits of a decoupled solution with the added value of a brand-centric approach. In other words, decouple for cost savings, but re-couple for quality assurance. We have also developed RedWorks as a project-based, creative offering that supports Ogilvy creative teams as well as providing a ‘small bucket shop creative offer for non-Ogilvy clients.’

My colleagues will detail the performance of the disciplines for which they are responsible below. Meanwhile, as I look to 2010 and indeed to the next decade, I am full of confidence. Not only do we have all the hard assets, from our specialist-in-discipline expertise to our ownership of the high ground of branding; from our proven tool-kits to a legion of innovations; but our soft assets – the Ogilvy culture which makes us a global family, demonstrably unique in touch and feel – are a winning recipe.

OgilvyOne Worldwide

Report by Brian Fetherstonhaugh (below)
Chairman and chief executive officer

Brian Fetherstonhaugh

Despite the highly challenging economic environment, OgilvyOne was able to grow in critical areas and continue to shape ourselves for the future. Digital marketing is the single greatest growth pillar for OgilvyOne, and we must relentlessly innovate to stay ahead of the pack. Forrester ranked OgilvyOne among its top echelon of leaders in its 2009 report, and OgilvyInteractive was recognized as the No.1 largest digital agency network by RECMA. Neo@Ogilvy, our innovative global search, digital media and performance marketing offering, was once again the fastest-growing part of the company.

Digital work from London, Dusseldorf and New York was honored at Cannes. At the 2009 global DMA Echo Awards, OgilvyOne won 16 medals, more than any other agency network. OgilvyOne achieved agency-of-the-year status in Germany, Greece, Hong Kong and Portugal. The Mobile Marketing Association named Ogilvy the top global agency for innovation. And, in North America, we were named Business-to-Business Agency of the Year by BtoB magazine.

Even more rewarding than industry recognition was client success: in 2009 we added significant new digital assignments from BT, Nestlé, Purina, Sony, Unilever, Yahoo! International and Zurich Financial Group.

One way we plan to stay at the leading edge of digital marketing is through the Ogilvy Digital Lab network. From our labs in Singapore, New York, London, Beijing and São Paulo, we bring innovative applications and technologies to market with our clients. Among the innovations currently featured in the lab: how to systematically measure the impact of social media; how to use augmented reality in mobile search applications; and digital point-of-sale technologies that deliver targeted messaging. The lab is gaining traction. Global clients have commissioned us to create innovation labs on their own premises, and The Mobile Marketing Association named us as the top global agency for innovation.

The future of OgilvyOne lies in our unique combination of creativity and performance results. Our mission is to help build the volume and value of our clients’ customers. And data will be the fuel. To this end, in 2009 we launched the Global Data Practice – a global team of over 250 data and analytics specialists devoted to finding customer insights and connecting them to the cash register. This will form a critical platform for future growth as it underscores our rallying cry: ‘We sell, or else.’

Ogilvy Public Relations Worldwide

Report by Christopher Graves (below left)
Global chief executive officer and
Marcia Silverman (below right)
Chair

Christopher Graves and Marcia Silverman

In a year considered the worst for communications since 2001, Ogilvy PR drew upon its highly-diversified, global network to deliver solid results. While some of its more than 80 offices around the world were hit hard, others soared to record profits, reinforcing the strength of a genuine network with broad-reaching, yet deep local roots.

In the midst of the economic storm, Ogilvy PR played a central role in the Ogilvy & Mather group initiative designed to lead clients to opportunities in the downturn, called Marketing in a Recession, which won this year’s WPP Atticus Award for Public Relations. Indeed it was a banner year for Ogilvy PR in terms of awards. We claimed several Atticus honors, three of the four WPPED Cream Awards for PR, and were named Asia Pacific Agency of the Year and Large Agency of the Year by PR News and The Holmes Report respectively. Many local offices won honors in their own right as well.

The specialist social media offering from Ogilvy PR, 360 Degree Digital Influence, continued to drive the transformation of client thinking while accelerating the internal training of hundreds of our people worldwide. The specialty continued to recruit top talent, created new tools and measurement methodologies and, in an industry-leading move, added resources in digital healthcare and pioneering digital practices in closely-regulated arenas. In fact, two leaders from the group, global managing director John Bell and author of Personality Not Included, Rohit Bhargava testified as expert witnesses in the US Food & Drug Administration hearings on social media in healthcare.

Healthcare and health policy specialist offerings continued to underpin the growth of Ogilvy PR, from large wins in Washington, DC (National Institutes of Health, Blue Cross Blue Shield Association and the Centers for Disease Control and Prevention), to cutting-edge, molecular medicine communications at Feinstein Kean Health, to a fast-growing 360-degree practice in Asia Pacific called Ogilvy Health, to a joint venture with Shire Health in London, Ogilvy Health PR.

open quoteCollaborative management of global clients helped drive Ogilvy PR’s relative success in 2009close quote

Collaborative management of global clients helped drive Ogilvy PR’s relative success in 2009. Beyond internal connections of the network, Ogilvy PR partnered with other WPP agencies to win LG Electronics, create new value propositions for Ford, and continue to service DuPont, Unilever and Savvis globally. Meanwhile, 75% of clients polled in a 2009 survey said they found their Ogilvy PR experience to be far superior compared with other agencies and that they would recommend Ogilvy PR to others.

Confident in the state of the public relations industry, Ogilvy PR will further provide 360 degree integrated solutions to clients, noting in The Economist, “When you look at advertising versus public relations, it’s not going to be those clearly defined silos. It may be indistinguishable at some point where one ends and the other begins”.

Ogilvy Healthworld

Report by Donna Tuths (below left) and Gloria Gibbons (below right)
Joint worldwide CEOs

Donna Tuths and Gloria Gibbons

In 2009 we focused on strengthening Ogilvy Healthworld as a truly global network, with a clear global proposition for customers and with an effective and responsive infrastructure.

We established GBM Pharma, a senior management team comprised of leaders for each of our key global clients. The focus will be on developing strategic partnerships and orchestrating talent, without geographical boundaries and from a channel-neutral perspective, to best deliver against our clients’ marketing and communications needs. We have experienced growth on Bayer, Pfizer and Boehringer Ingelheim.

Our clients are centralizing their marketing and their spend to hub offices – we have created global and regional hub offices in response: in New York, London, Paris, Mexico and Singapore. Despite the economic challenges of last year, it is worthwhile to note that OHW UK delivered strong growth in 2009, not least due to its role as an international hub and its collaborative 360 working model.

Working with Ogilvy & Mather regional management in Asia Pacific and Latin America we are establishing a stronger health presence in those regions too. We are diversifying the current offer and raising talent skills, as well as sharing expertise and client connections.

As we are increasingly seeing scientific expertise, data management and stakeholder mapping being requested and valued by our clients, for Rx (prescription medicines) brand positioning and market access, we are committed to ensuring that medical education is established as a core offer. A worldwide medical education plan has been launched to bed the discipline strongly across all our regions.

And let’s not forget that clients buy us for ideas – creative, strategic and commercial – and the fact that we can turn these ideas into cost-effective programs that have a real impact.

In 2009 we worked hard to ensure a strong performance here:

  • We won 32 creative excellence awards in 2009 for our ideas, including four globals and six marketing effectiveness awards. Our Digital and PR practices, working together, won a Pharmaceutical Marketing Digital Award for its global program for Wyeth’s Naked Truth campaign. (See www.psoriasisthenakedtruth.com). The innovative print and TV work for Smith & Nephew won two Clios in the first ever Clio Healthcare Awards.
  • Our ideas enabled us to innovate within our Digital Healthcare and Strategic Planning offers in the area of behavior change. We took these new approaches to clients and built Innovation Days to get brand teams thinking very differently about their marketing and communications strategies.
  • We found new ways to measure what we do for clients and the ROI impact it has in our Measurement and Analytics practice. In this economic climate, it is all important to ensure we are spending budgets in the most effective way possible.
  • And we built a number of multi-market delivery models for international clients, tailored to the level of central control they required and the set of metrics that are important to them, saving time, resources and money.

We look forward to rolling out these strategies further in 2010.

OgilvyAction

Report by Steve Harding (below)
Global chief executive officer

Steve Harding

In the face of a challenging environment, 2009 was a year of positive transition for OgilvyAction. We crystallized our focus into what clients are increasingly asking for, Shopper, Trade and Experiential Marketing in particular, which resulted in significant new business gains in the later part of the year. We focused on building our credentials across the industry, extending our presence into critical new geographies, and solidifying our business with both global and local clients.

In 2009 a new global leadership team was appointed, which has been focused on delivering a diverse, yet specialized offering. A refreshed strategic focus for our company as well as a robust engagement team and road map were put in place to drive directly more business from Ogilvy’s global client base.

We also instilled an even greater passion for delivering impactful and innovative creative thinking and solutions that will highlight the increasingly vital role of the OgilvyAction network within the Ogilvy Group. This has already paid dividends with new business wins both globally and locally.

Having been the cornerstone of the activation business model for many years, the strategic importance of Sales Promotion is receding. It was clear from the end of 2008 that cutbacks in traditional promotional spend would affect our global business in 2009. However, increased growth in the more evolved and specialized areas of Shopper and Trade Marketing proved a timely development within our sector.

Our Shopper, Trade and Experiential disciplines, coupled with our creativity and analytical expertise enabled us to deliver successful and award-winning programs to many of our clients; Kraft, Coca-Cola and BAT to name but a few.

This focus has also helped deliver an important point of difference in new business strategy and delivery. Successes with Lego, Diageo and Kimberly-Clark, all key wins for us over the past 12 months, are proof of this.

In 2009 our business was centered in EAME which brought in nearly half of our global revenues. Asia and North America brought in around a quarter each, with the remaining revenues coming from Latin America. With continued growth expected from the BRIC markets, we expect that 2010 will create more opportunity and a more balanced regional business structure.

Significant themes in 2010 are primarily the continued growth and strategic importance of Shopper and Trade disciplines. In addition, digital will also have a significant impact in our space as the proliferation of new technologies continues apace. The increase in 3G usage and the growing influence of social media suggest that digital activity in Activation will become even more prevalent in the coming years.

As with almost every company in the communications industry, 2009 was a year that we would not like to experience again. However, OgilvyAction has just cause to be optimistic for 2010 and beyond. The key components of the Activation arena are now so vital that no marketer could consider Activation as not being an integral part of the strategic armory of their marketing and business services – and we believe OgilvyAction is well placed for the challenge.

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