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Ogilvy Group

Ogilvy & Mather

Report by Miles Young (below) Chief executive officer

WPP Annual Report 2010

This is one of the most exciting periods in marketing and communications I can remember. We can now discern the real impact of digitalization on our world, re-shaping what we do and even why we do it. We can see it not as a mere channel but as a central platform, not just a messaging tactic but the means for creating ecosystems of rich content.

Our own digital strategy is the very opposite of the so-called ‘pure plays’. We believe that everything has to be seen as digital; it cannot be separated into a silo. Digital influence, digital POS, paid-for digital, social selling, digital CRM, e-commerce are all embedded in the fabric of our 360° business model. Around the world we now have over 4,000 staff who might be called ‘digital natives’, whose work is highly specialist, but who are completely integrated into the strategic process.

We were joined at the end of last year by our new chief digital officer, Brandon Berger. One of Brandon’s roles is partnerships with Google, Twitter, Groupon, Facebook and Apple. With them, we are exploring both the opportunity for innovation but also better ways of adding strategic and practical value – beyond so much that is merely theoretical or tactical – to our clients’ businesses. Integration is the key here; and our unique structure – with disciplines genuinely under one roof and operating as one – gives us a compelling offer.

In essence, what we are seeing is the arrival of a new agency model, where we move from being the generator of messages to the producer of content. Our new work for UPS, for instance, is premised on digitally-enabled content which positions the company right at the heart of logistics, seamlessly meshing lead generation with image building. The Smarter Planet program for IBM is a massive publishing venture, much more than an advertising one, where traditional definitions of who does what have simply disappeared, and where public affairs and advertising speak the same language. Branded entertainment assumes a new centricity in this model: our strategic partnership with content market leader MIPTV puts us at the center of the debate; and through the year Ogilvy Entertainment has exponentially increased its production of content and programming.

Content and thought leadership are inextricably linked. OgilvyEarth was recognized as the top sustainability agency, by Verdantix, an independent consultant firm, after just one year of operation. We launched Ogilvy Noor, the first Islamic branding consultancy, which attracted huge interest as it sought to highlight the impact of the world’s 1.8 billion Muslim consumers.

 What we are seeing is the arrival of a new agency model, where we move from being the generator of messages to the producer of content 

2010 was a year of creative success. We won 57 Lions at Cannes, a big increase from last year. Our performance at the other major international shows was also consistently double-digit: 31 London International Advertising awards; 17 Clios; 17 DMA Echos; and 14 One Show Pencils. Particularly to be noted has been the exceptional performance of the Latina region, which dominated the El Ojo de Iberoamérica Awards and was named Best Creative Network of the Year.

‘The work’ is what wins assignments; and we had an exceptionally strong year in new business. Global clients gained included Bayer, Coke Zero, the global business of Kimberly-Clark for Huggies, Kotex and Depends, InterContinental Hotels Group, Unilever’s corporate business, Brand Mexico and Expedia. This robust performance was mirrored by local offices, and meant that we ended the year financially well above our budget targets. As a result of these successes, many of our offices were recognized as Agency of the Year in their markets, including: Argentina, China, Colombia, Costa Rica, Dubai, Germany, Guatemala, Hong Kong, Malaysia, Mexico, Poland, Singapore, South Africa, Tunisia, Ukraine, the UK and the US. Three offices deserve special recognition for defending their best-in-region titles: Ogilvy Africa retained its crown as AdFocus African Advertising Agency Network of the Year; Ogilvy Paris was once again named European Agency of the Year at Eurobest 2010; and Ogilvy Mumbai was named Creative Agency of the Year for a second year running at the Media Asia Awards.

One of our networks which is not called out separately in this report but which plays a significant role in this success is RedWorks. RedWorks is our global production business, committed to helping Ogilvy’s clients find efficiencies in the delivery of their communications. With 49 offices worldwide, it ensures global consistency, cost-effectiveness, and that every deliverable will be crafted to the highest standards of Ogilvy.

In 2010, we fully integrated Ogilvy Government Relations in Washington, formerly the Federalist Group, into the Ogilvy network, giving us and our clients unmatched access to Capitol Hill.

Our biggest structural initiative this year has been in healthcare. Ogilvy & Mather’s healthcare group merged with US-based CommonHealth, effectively doubling the size and reach of each organization. The new entity, Ogilvy CommonHealth Worldwide, is now a true world leader in healthcare communications, led by chairman and CEO Matt Giegerich, who has just been named Industry Person of the Year by Med Ad News. Read his detailed report.

In 2010, three new discipline leaders took their posts: Chris Graves for public relations, Steve Harding for activation, and Paul Heath for advertising. Even as we bring our units closer together, we are not melting or diluting our individual strengths. We have found that the best practice is to keep each discipline strong, to focus on being best-in-class in each discipline; while at the same time recognizing that the power of Ogilvy is when we tap their strength as part of a fully integrated 360° offering.

 Beyond the BRICs, the Ogilvy brand continues to flourish in the new markets of the world 

Geographically, we continue to be a highly diverse operation. Some 34% of our staff comes from the BRIC countries (Brazil, Russia, India and China). Our leadership position in the BRICs is a huge asset for us, and one which we intend to leverage and publicize more aggressively in 2011. Beyond the BRICs, the Ogilvy brand continues to flourish in the new markets of the world. In particular, in 2010 we entered into a joint venture with Scangroup to significantly push our business in sub-Saharan Africa and more recently amplified this investment in the region by becoming majority owner of our Ogilvy South Africa operations.

Finally, I want to reflect on our people, our most important asset. As I travelled the world last year, in all four regions, I could not help but feel blessed by the quality and character of our employees. It is a hugely uplifting and privileged experience working with them, and it makes one understand how we are such a powerful brand. My thanks go to them.

OgilvyOne Worldwide

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

WPP Annual Report 2010

By any standard, 2010 was a terrific comeback year for OgilvyOne Worldwide.

Financially, we recovered from a very difficult 2009 and accelerated past pre-recession levels. Our top-performing market was the US, led by our flagship New York office. Encouragingly, every region contributed to year-on-year improvements in revenue and profit.

Strategically, we sharpened our focus on driving customer value and on selling. It paid dividends. We had a banner year in new business wins, adding multi-million new assignments in hotels, logistics, insurance, telco and fast-moving consumer goods.

We continue to advance our effectiveness culture. During 2010 we launched a Global Analytics hub in Bangalore, offering world-class analytics services and extremely attractive economics to clients. This fall we unveiled a comprehensive research initiative ‘The Future of Selling’ and launched the 21st Century Selling Partnership to help clients get more from their marketing and sales resources.

Our global digital media arm, Neo@Ogilvy, continues to thrive growing to record levels in 2010. Neo’s hottest offer is its performance marketing unit which helps clients acquire new customers faster and more efficiently by using real-time optimization.

Our reputation among digital direct agencies remains excellent. In its 2010 survey of over 7,000 digital agencies, RECMA ranks OgilvyOne No. 2 in the world in size of digital resources. In addition to Agency of the Year accolades in Hong Kong, Taiwan, Portugal and Germany, we were named Direct Agency of the Year in the UK by Campaign magazine and Digital Agency of the Year in Asia by Campaign Asia magazine.

To keep us and our clients ahead of the pack in digital innovation, we have five Ogilvy Digital Labs, located in Singapore, New York, London, Beijing and São Paulo. The labs put together new marketing technology solutions for our clients in areas such as mobile, gaming, social media, CRM and digital point-of-sale.

Creative awards are still an important driver of OgilvyOne’s new business success and momentum. We take them seriously. This year, OgilvyOne won a total of 524 local and global awards for direct and digital marketing, up from 427 last year. Key wins include 17 Direct Marketing Association Echo Awards and eight in the Cannes Direct, Cyber and Promotion categories. For 2010, the Directory Big Won Report named OgilvyOne Frankfurt the No.1 most awarded direct marketing office in the world.

Looking ahead, OgilvyOne will aggressively pursue digital opportunities in Social Selling, Mobile, eCommerce, Performance Marketing and Digital Innovation. With our commitment to selling at the core of everything we do, we are poised to build on the momentum and reach even greater heights in 2011.

Ogilvy Public Relations Worldwide

Report by Christopher Graves (below) Global chief executive officer

WPP Annual Report 2010

In 2010 we focused on building further our expertise in social media, in growing our talent base and helping our clients through challenging times.

Ogilvy PR’s social media offering continued to grow, doubling its business in 2010. Working with a WPP multi-agency team, the 360 Degree Digital Influence group helped create such world firsts as the ‘reveal’ of the all new Ford Explorer via Facebook – something which had only ever been done at auto shows in the past.

Knowing that expertise in social media is now mandatory for business, we established an ‘Ogilvy Belt’ training program to give employees the skills to use digital resources to their full potential. More than 500 employees in more than 20 cities have participated in the tiered program.

Hiring, retaining and training top talent remains a priority. In 2010 our aggressive moving of talent around the world to spread best practices brought fresh ideas everywhere. Top executives moved from San Francisco to Hong Kong, Sydney to New York and Washington DC to Brussels. New outside hires include industry stalwart Stuart Smith as head of the global corporate practice and Brendan Daly, former communications director of US Speaker of the House, Nancy Pelosi, as executive vice president of Public Affairs in Washington. In 2010 we deployed our talent in many diverse projects and campaigns. For example:

  • Our Washington office was selected by The Agency for Healthcare Research and Quality, part of the US Department of Health and Human Services, to build a marketing campaign around its comparative effectiveness research. Our differentiated strength lies in deep expertise in social marketing; we leveraged linguistic framing and behavioral economics to move populations toward healthier choices, such as with First Lady Michelle Obama’s ‘Let’s Move’ initiative.
  • As part of our overall relationship with BP, Ogilvy PR was called upon to create and run a social media strategy to support the company’s response during the Gulf of Mexico oil spill.
  • The Government of Mexico asked Ogilvy PR to help promote its reputation worldwide as a global business partner and an unrivaled tourist destination.

 Our aggressive moving of talent around the world to spread best practices brought fresh ideas everywhere 

Integrated efforts with other Ogilvy & Mather disciplines resulted in wins for Unilever, UPS, CDW, TD Ameritrade and the American Bar Association. PRWeek US editor-in-chief Steve Barrett observed that our “intention is to integrate advertising and PR services more closely than other networked agencies”.

The results achieved in 2010, when we celebrated our 30th anniversary, give us confidence that our global, integrated approach to communications will prove invaluable as the world economic picture brightens in 2011.

Ogilvy CommonHealth Worldwide (summary)

Report by Matt Giegerich Chairman and chief executive officer

When CommonHealth, Med Ad News’ Agency of the Year 2010 and already one of the most formidable healthcare communications groups in the industry, merged its offerings with Ogilvy & Mather’s healthcare group, the bold coupling became one of the most talked about agency mergers in years. Though the groups had collaborated extensively over the past 15 years, the formal marriage of the two like-minded, similarly-cultured agencies effectively doubled the size and reach of each organization in the healthcare arena. The result? An entirely new entity, Ogilvy CommonHealth Worldwide (ogilvychww.com), was formed, creating what is arguably the largest, most highly resourced and creative agency in the world of healthcare communications.
Read full report here.

OgilvyAction

Report by Steve Harding (below) Global chief executive officer

WPP Annual Report 2010

Following a challenging 2009, OgilvyAction entered 2010 optimistic that the work done in transitioning and refocusing our business would provide a platform for a strong year ahead. This optimism proved well founded – our new Global Leadership Team drove an aggressive agenda in exceeding our financial targets with stellar revenue and profit growth across the network and exceptional turnarounds in North America and Asia Pacific as well as a solid performance in Europe, Africa and the Middle East.

This financial performance was underpinned by a number of strategic imperatives, delivered by a seamless collective effort from all parts of our network: We have:

  • Aligned OgilvyAction as a more integrated and integral part of the Ogilvy Group.
  • Launched our new global proposition of ‘Creating Purchase Behaviour’ – built around our promise that by understanding the behaviour of consumers, shoppers and retailers, we’re able to create the conditions that drive brand purchase.
  • Supported this launch with our new visual identity, website and global credentials.
  • Focused on strengthening our Shopper, Trade and Experiential capabilities, and enhancing our analytics offering across all disciplines.
  • Underpinned this with a drive towards delivering ‘Pervasive Creativity’ for our clients, through remaining focused on the ‘Twin Peaks’ strategy of ‘Creativity and Effectiveness’.

These achievements have paid swift dividends in terms of our penetration within Ogilvy’s global client roster, with some impressive new business wins including Coca-Cola, Kimberly-Clark, Kraft, Kodak, BP, Barclays and Intercontinental Hotels Group, as well as local wins with clients such as Diageo, Grazia and Heineken. In 2011 we continue to have aggressive new business targets to further cement our relationships with major global and local clients.

The global recession has resulted in many clients reassessing their business models and giving greater strategic importance to activation disciplines. In line with this growth, we have extended our global footprint from 64 to 81 offices, and our recent joint venture with the Malone Group in the US has made OgilvyAction a top five activation agency in North America, further bolstering our Shopper and Trade Marketing capabilities and reputation.

So, 2010, whilst successful for us, represents only the start of our ambition. In 2011 we will focus on four core elements:

1. Strengthening our talent pool.

2. Growing our strategic and analytical capabilities.

3. Delivering excellence in our core Shopper, Trade, Experiential and Promotional marketing disciplines.

4. Elevating our creative reputation.

Central to all four is digital, which will increasingly become a key part of OgilvyAction’s offering in every region. Specifically, Digital Activation Instore, Social Shopping and Mobile will be areas that we accelerate; our ambition being to define the global agenda.

We believe that this focus, supported by the growth of activation as a fundamental and strategic part of the marketing mix, places OgilvyAction in a wonderful position to ensure we are at the forefront of the global activation arena in 2011 and beyond.