Ogilvy & Mather

Ogilvy & Mather

Report by Miles Young (below) Chief executive officer

Report by Miles Young

In 2011, we welcomed two new global clients to our network, SC Johnson and Royal Philips Electronics. We could not be more proud to have been entrusted with these remarkable brands.

In the discussion which led up to our appointments, a common and central theme was ‘integration.’ Perhaps not surprisingly, since our research shows it to be the No.1 issue concerning CMOs today. Both clients attributed our appointment, in part, to our ability to demonstrate ‘deep’ integration.

In the last few years our focus for investment has been Integration 3.0, and now even beyond that. One of the problems of our industry, though, is that the earlier integrated life forms resolutely refuse to die.

There is Integration 1.0: graphic integration, mainly – what we call “matching luggage,” where things look and feel essentially similar. Slightly more evolved is Integration 2.0, “integration by funnel,” where there is a systematic (though often formulaic) attribution of different roles for communications to a different stage of a funnel. This still represents best practice for many. Integration 3.0 is where the process becomes much more organic: where the real journeys of shoppers and customers are the basis for how to integrate. 4.0 takes us into territory we are starting to explore, where integration is dynamic, involving chain reactions to every element of the business, right across the marketing and sales mix; all managed live, in-market and driven digitally.

Getting there has quite a price of entry. You need, firstly, to possess the ability to execute to best-in-class levels. In this respect, client disappointment with execution which does not live up to the promise of a plan is rife throughout the industry. Integration is execution. And, secondly, you need laser focus. As my colleague Ben Richards (who, with his team, has developed our strategic approach in this area) puts it, while you desperately need 360° capabilities, what then matters is how you deploy them: clients want “the 10° which really matter.” Goodbye to all those bicycle wheel charts, which showed a zillion points of contact radiating from the core idea, which would inevitably be a television commercial. This 10° is our sweet spot, and it happens in one room, with one team and one operating system.

The other highlight of our year was Cannes – at so many levels. At one level, it saw our best performance ever in terms of awards, emerging as the No.2 network – a tribute to the leadership of our worldwide creative director Tham Khai Meng and his teams. At another, it saw us celebrate the 100th birthday of David Ogilvy. The event was made for us by the attendance of Mme Herta Ogilvy. We spread a two-kilometer red carpet along the length of the Croisette, parts of which Khai has had cut up and made into ‘official David Ogilvy insoles’ to remind us to continue “walking like a lion”!

TED speaker and education and creativity expert Sir Ken Robinson delivered the first lecture of our ‘Ogilvy & Inspire’ series and reminded us that “pervasive creativity is about involving everybody and the whole operation” and that “great creative work involves interactions across and within an organization and among different areas of expertise.” This was another reminder of the need for deep integration.

Last year, we performed ahead of the market in all our regions and all our disciplines

Last year, we performed ahead of the market in all our regions and all our disciplines. Brian Fetherstonhaugh (direct marketing), Chris Graves (public relations), Steve Harding (activation) and Matt Giegerich (healthcare) detail their performances on the following pages. We have not called out Ogilvy & Mather Advertising (led by Paul Heath) separately, as much of its achievements I have touched on above.

Geographically, the US and the UK both grew very well for us, while the developing markets in Asia and Latin America continued to outperform our expectations. Last year, we took a majority stake of our outstanding business in South Africa, cementing the acceleration of our Africa strategy. In China, we acquired Nanjing Yindu, one of China’s largest independent advertising agencies, consolidating our strong position in the Yangtze River Delta region. Who Digital in Vietnam and Promo Interactive in Russia are both significant acquisitions in the digital area. Recognizing the growing heft of Chinese business abroad we established the first US-based China Practice of any international network, to assist Chinese companies entering the US. DAVID in Brazil and Argentina was launched, with the aim of capturing the fantastic creative talent there and making it accessible, jointly, abroad.

Once again our agencies around the world received multiple recognitions, and it is difficult to single out all of them here, but I want to recognize the success of Asia in winning both Campaign Asia Pacific’s Regional Network of the Year and Creative Agency of the Year, and of Ogilvy & Mather Latina in being Network of the Year in three different awards (San Sebastián Festival, Antigua Festival and the Oro de Iberoamérica). These achievements are remarkable.

Our culture provides an environment that allows movements to flourish when a few of our people get together with an altruistic goal in mind

Another source of pride is the network’s sense of responsibility to the broader communities in which we live and work. I am thinking in particular of the Great Tohoku Earthquake in Japan. The response of our staff in Tokyo through repeated visits to the disaster zone and the generous support of our offices around the world, have made a real difference to shattered communities. This reaction shows the Ogilvy family at its very best, epitomizing the humanistic values espoused by our founder, who laid down a culture of volunteerism that continues to thrive today in the countless pro bono campaigns undertaken by our offices. From long-standing global partnerships such as the WWF to local grassroots charities, our culture provides an environment that allows movements to flourish when a few of our people get together with an altruistic goal in mind. Our global sustainability practice, OgilvyEarth, launched three years ago, is continuing to help clients such as Coca-Cola, Johnson & Johnson and Unilever develop programs that move beyond traditional green marketing. Their latest research study Mainstream Green uncovers the huge gap between what consumers say they intend to do and what they actually do around sustainable living, providing new insights for how companies can create the link to behavioral change.

In 2011, I was lucky to visit our offices in over 15 countries. In each of them I found the same people power, the same well-springs of inspiration, the same sense of family, or, as we would put it, of “red-ness” – even as the shades of red vary, as we want them to, from culture to culture. To all our staff, I would like to express the heartfelt thanks of the management team for driving a red letter year.

OgilvyOne Worldwide

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

Report by Brian Fetherstonhaugh

Through 2011, OgilvyOne continued to grow and develop as a network, and we have tremendous opportunities ahead.

We grew in every region, and set a new all-time high for worldwide revenues. In 2010, our growth was led by exceptionally strong performance in the US. In 2011, it was the other regions that carried the load. Europe had its best year for revenue growth since 2005. Latina grew over 25%. And Asia achieved a hard-fought, double-digit revenue increase.

OgilvyOne’s strong fast-growing market footprint continues to drive outstanding growth. Our combined revenue growth in Brazil, China, India and Russia was well over 20%.

Our digital performance marketing network – Neo – finished the year strongly to achieve double-digit growth yet again.

Finally, we come to the UK, whose 2011 was nothing short of spectacular: revenue and profit growth well above 25%, big new business wins, and a sharp increase in creative awards. To cap it off, in December, OgilvyOne UK was selected by Campaign magazine as the Direct Marketing Agency of the Year – for the second year in a row.

Creativity remains a core strength of OgilvyOne Worldwide, and our performance at industry award shows is important in attracting clients and top talent. In 2011, Ogilvy won the Direct Marketing category at Cannes, led by integrated efforts from Latin America. We had another good year at the Direct Marketing Association Echos, capturing 14 awards including two Gold and two special awards, including the prestigious Henry Hoke award. And we got back onto the podium at the Caples with 12 medals.

Our reputation continues to climb – we were digital or direct Agency of the Year in Argentina, China, Germany, India, the UK and the US. RECMA, in its survey of the top 150 global digital agencies, ranked us at No.2. Forrester, the leading US digital analyst, ranked us in their top leadership tier in their report on Mobile Marketing Strategy and Execution.

Our promise to our clients is a simple one: we help them win more customers and make them more valuable. 2011 was the year when we crystallized our ability to ‘unlock the full value of customers.’ Every OgilvyOne employee worldwide now has access to the OneStore, a comprehensive toolkit for discovering and unlocking the value of customers for our clients. This approach has been instrumental in many of our client engagements and new business wins in 2011.

We conducted a pioneering research study to understand the impact of the mobile device on the retail environment to help marketing leaders capitalize on the potential of mobile marketing. The resulting white paper, From Armed to Charmed: Preparing for and profiting from the new mobile-enabled point of sale, developed with OgilvyAction, has been viewed by over 50,000 marketing leaders around the world.

For 2012 and beyond, we will focus on two marketing battlefields...e-commerce...and social customer relationship management

As we look to the future, we will focus our attention on emerging markets and fast-growing segments of the digital landscape. Acquisition plays a vital role in bringing critical geographic coverage, capabilities and talent to the OgilvyOne network. In 2011, we welcomed these companies into the fold:

  • Who Digital – Vietnam
  • Promo Interactive – Russia
  • DT Digital – Australia

For 2012 and beyond, we will focus on two marketing battlefields that will be increasingly important to our clients. The first of these is e-commerce, which is growing globally at over 15%. OgilvyOne has a strong existing base in e-commerce that leverages our strengths in digital direct marketing, analytics and brand experiences. We have ambitious goals to expand beyond this e-commerce core. The second battlefield is ‘social customer relationship management’ (sCRM), an emerging field that combines the power of traditional CRM with the explosive growth of social media.

Ogilvy Public Relations

Report by Christopher Graves (below) Global chief executive officer

Report by Christopher Graves

In marking the 100th anniversary of our founder’s birth, Ogilvy Public Relations tried to live up to one of David Ogilvy’s pronouncements: “Change is our lifeblood.”

Ogilvy PR leadership took a view that, in a media landscape fragmenting and morphing at blinding speeds, the times called for revolution. So we accelerated our transformation of the agency with a comprehensive, worldwide, educational strategy reminiscent of Six Sigma. The industry arbiter, The Holmes Report, rewarded Ogilvy PR for these substantial efforts by naming us Digital/Social Agency of the Year. Our clients rewarded us with their trust that we understood the ‘social’ phenomenon as a business and branding strategy and not just a tactic or gimmick. Revenues for this nascent business grew more than 43% making it a serious contributor to our overall business.

And the transformation went beyond digital and social. A deep integration with the other Ogilvy disciplines drives a key differentiator of Ogilvy PR. The company embraced the new Ogilvy & Mather group operating system called FusionTM. Rather than a sequential or hierarchical process, FusionTM draws Ogilvy PR into the integrated strategy from the outset. Just as we did with Social@Ogilvy, we rolled out FusionTM training around the world.

In 2011, Ogilvy PR further embraced the transformation IBM’s Jon Iwata identified as “every company is a publisher.” But in the rush to become content creators, we recognized our need to help clients create relevant and high-quality content − not just more noise. To this end we welcomed aboard four-time Emmy and two-time Peabody Award winner Betsy Stark whose three-decade career spans The Wall Street Journal and ABC News. She joined an already strong content team that has crafted compelling content ranging from videos to infographics and conversation starters in client online communities.

While the Asia Pacific region has served as the most powerful growth engine for many years, in 2011, the US and Europe fired up double-digit growth rates surpassing Asia.

A healthy combination of new business wins and expanded work with existing clients added up to a record year for Ogilvy PR.

While fiercely proud of our financial performance, just as importantly, Ogilvy PR people worked hard to make the world a slightly better place

We were honored to win highly-competitive global pitches for Diageo, the BP London 2012 Olympic Games sponsorship, BMC Software and the Mexico Tourism Board, among dozens of others.

As in prior years, broadening and deepening relationships with existing clients drove a significant amount of growth. Our multi-region client roster grew by 40%. This organic growth is a reflection of our ability to maintain long-term client partnerships – 95% of our top 20 clients stayed with us in 2011.

While fiercely proud of our financial performance, just as importantly, Ogilvy PR people worked hard to make the world a slightly better place. We provided over $1 million in pro bono services, more than triple our 2010 commitment. Pro bono clients included: Opportunity Nation, a history-making, non-partisan coalition of more than 100 NGOs and influential institutions such as Brookings and Heritage dedicated to restoring economic opportunity in America; Caring for Cambodia, a foundation that has built and runs 15 schools in a country that in the past executed all its teachers; Yellowstone Park Foundation; and the World Social Marketing Conference. In a great show of initiative, our young Millennial employees created OgilvyConnect, a pro bono consultancy that provided communications training to 21 local non-profit groups. All of this comes on top of the substantial charitable efforts at every office, from donating truckloads of food at holiday time, to supporting communities in dire need.

Finally, Ogilvy PR garnered more than 125 awards in 2011, including Cannes PR Lions and winning the top WPP WPPED Cream creative award for the fourth time in five years.

A great year. We know we can do better in 2012.

OgilvyAction

Report by Steve Harding (below) Global chief executive officer

Report by Steve Harding

OgilvyAction had a very successful year in 2011, the third consecutive year of positive growth and achievement.

In planning for 2011, OgilvyAction’s leadership team forecast the continued growth of activation as a strategic part of the marketing mix. This certainly was the case and OgilvyAction was well positioned to take prominence with some impressive new business wins, including a new relationship with SC Johnson, which was won in partnership with Ogilvy & Mather.

The stellar year-on-year growth was achieved by some exceptional regional performances in North America and Asia Pacific. The US joint venture with the Malone Group in 2010 made OgilvyAction a top five agency and was instrumental in the continued positive development of our North American operation in 2011.

OgilvyAction’s existing client base also saw continuation of sustainable growth and strengthened our platform to increase penetration in Ogilvy & Mather’s global client roster. In line with this strategy, Coca-Cola, Kimberly-Clark, Unilever and Siemens showed significant growth in 2011.

Our growth strategies were the base of 2011 plans and proved to be fundamental in achieving revenue and profit growth.

  • To help elevate the quality of our creative product and to enhance our creative reputation, we launched a new global philosophy: ‘Big Ideas in Action’. This focus has resulted in OgilvyAction increasing its success in award shows, 150% on 2010, making 2011 the most successful year for creative awards in the network’s history.
  • We also embedded a business development framework to deliver ‘Big Ideas in Action’. Named ‘Winning Ways’, this is a dynamic and globally-consistent model and approach to new client acquisition and organic development that has now been adopted across all four regions.
  • We have strengthened our talent pool with investment in strategic and creative expertise across our key hubs.
  • There was also a strong focus on learning and development; the extension of best practice via our global community has spurred excellence in the delivery of our core Shopper, Trade, Experiential and Promotional activation disciplines.

Most importantly, we launched the OgilvyAction Digital Activation 6-Point Plan. This will ensure that digital focus is ubiquitous throughout our network. The leadership team firmly believes that this initiative will be the most important move in defining our future success and achieving our global ambitions.

2011, whilst successful in its own right, is only one part of our journey. As we move into 2012 with its continued economic uncertainty, we will continue to be ambitious and driven but at the same time pragmatic. Our 2012 plan therefore, provides no fundamental change to our overriding ambitions and strategy. We have positive momentum, so a balance of continuing on our existing path together with some increased focus in specific areas, is the basis of our plan for the year ahead. 2012 will see us focus on five key areas:

  • 1Drive growth via our ‘Winning Ways’ business approach, building revenue in both Ogilvy & Mather’s global clients and ‘greenfields’ opportunities.
  • 2Continue to build our creative reputation, targeting significant creative and effectiveness awards.
  • 3Drive digital ubiquity in every region, particularly in the mobile and social shopper areas.
  • 4Achieve all the above whilst improving our margin.
  • 5Via our talent community, ensure that our existing talent is developed, retained and motivated and where we have talent gaps, strengthen our capabilities by recruiting the ‘best’.

OgilvyAction’s ambition is to be the world’s best brand activation network. We have made significant strides in achieving that goal and we believe that clients’ continued demand for strategically-led activation solutions with ‘Big Ideas’ at their centre, will ensure that OgilvyAction is well positioned to continue its growth in 2012 and beyond.

Ogilvy CommonHealth Worldwide (summary)

Report by Matt Giegerich Chairman and chief executive officer

After just one full year of operation, the healthcare marketing network formed in 2010 by the merger of Ogilvy Healthworld and CommonHealth has proven it can deliver a more integrated, more digital and more global offering than either could as separate entities, with an impressive 72 significant new agency-of-record assignments in 2011, as well as numerous additional project-based assignments.

With 65 offices across 35 countries, individual business units within the Ogilvy CommonHealth Worldwide network continue to provide specialized focus on key healthcare marketing disciplines. However, a new, unified global reporting structure is now in place, intended to help ensure the network can deploy the right team and resources for every client, regardless of geography or scale. This global structure also creates operational efficiencies and reduces duplication of effort and investment.

Read full report here

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