World PR Report: PROI is largest independent partnership and 5th largest Agency Group

In a global industry estimated to be worth US$ 13.5 billion, PROI Worldwide stood out with a surge of 17.1% in global net fee income and continues to lead all integrated communications agencies in rate of growth according to the 2015 World PR Report produced by The International Communications Consultancy Organisation (ICCO) and an industry ranking agency. PROI Worldwide’s growth rate compared to 8.7% for all independents, 3.5% for publicly owned multi-national firms and 5.3% for the four larger global holding companies.

PROI Worldwide’s dramatic 2014 growth follows on the heels of 21.9% growth in 2013 and occurs during a time when it continues to aggressively expand globally through organic growth, new client acquisitions, by growing existing digital, social media and other niche areas and by adding additional offices in existing and new markets.

Among its ranking of global holding companies, the 2015 World PR Report ranks PROI Worldwide’s 75 agencies as 5th in the world, larger than holding groups Publicis, Huntsworth and Havas. Compared to centrally owned multi-nationals, PROI Worldwide ranks third and is larger than FleishmanHillard, Ketchum, MSL Group, Burson Marsteller, Hill + Knowlton Strategies, Ogilvy and Golin. Among global networks of agencies, PROI Worldwide’s combined 2014 net fee revenue of more than US$ 615 million dwarfed Worldcom, its nearest competitor, which reported an increase in fees of 2.6% to US$ 288 million, IPREX with US $220 million and Next15’s with US $ 170 million in net fee income.

“PROI Worldwide’s growth and marketing strategy has not changed for many years and is a proven formula,” says Andreas Fischer Appelt, Global Chairman of PROI Worldwide and Managing Director of fischerAppelt, one of Germany’s largest agencies with clients around the world. “Our existing influential and leading edge independent agencies attract other high growth independent agencies which also tend to be the most dynamic agencies in their market and this is reflected in our 2014 growth rate.”

When it comes to growth “clients recognize our competitive edge and positioning in the local market,” adds Fischer Appelt.  “Rather than dealing with a centrally owned multi-national, they like working with local agency owners who understand their market and who are directly aligned with the agency’s bottom line. As a result clients receive top level management attention and are well served.”

Explaining PROI Worldwide’s growth, founding partner and Global Managing Director, Allard W. van Veen says “our independent agencies are small, mid-size and very large so we are able to serve the needs of a large and diversified client base.” According to van Veen, PROI Worldwide’s strategic growth strategy, positioning and integrated approach allows it to explore, aggressively invest in growth areas and add services which contributes to accelerated growth and is usually a significant factor in the continued rapid growth of many of PROI Worldwide’s independent agencies.

Jean Leopold Schuybroek, PROI’s Director, Global Development, heads up the global team which identifies and evaluates potential PROI agencies. Schuybroek says that agencies whose strategic direction includes an integrated approach to services and a global view of the communications industry usually turn out to be the best agencies in a market. “These agencies understand their market and meet the standards of our brand.” Since PROI Worldwide has set a limit of 95 agencies worldwide “we are very selective as we continue to grow to ensure we have the expertise which our clients need in critical markets.”

Addressing the perception that only a centrally owned multinational agency has sufficient staff or experience to handle large global or regional accounts, PROI Worldwide Founder van Veen points out that many of the world’s 250 largest agencies are part of PROI Worldwide and a number of PROI agencies have staff of 4-600 people and are either the largest or top-5 agencies in their markets.

“This is certainly the case in APAC Region,” states Richard Tsang who chairs PROI Worldwide’s Global Development Group in APAC Region and who is Chairman of Hong Kong’s largest communications company SPRG Asia which also has offices in China and Taiwan. “Within APAC Region we count the largest agencies in India and Japan as well as large agency groups in Australia and New Zealand in addition to our partner agencies in Korea, Vietnam, Bangladesh and Singapore.”

van Veen adds “the World PR Report placed PROI Partners Adfactors PR in India and PRAP Japan among the top 10 fastest growing agencies in Asia Pacific, US based Finn Partners among the world’s 10 fastest growing agencies, and Wellcom in France among Europe’s 10 fastest growing agencies.”

PROI Worldwide was founded in Europe in 1970 and is the world’s first partnership of independent agencies. PROI Worldwide agencies operate globally, regionally and, increasingly, in sub-regional markets such as ASEAN, the Nordics, Central Europe, Latin America and other trading areas which mirror geographic markets established by clients. In addition PROI Worldwide operates in Practice Groups such as consumer, crisis, healthcare, business consulting and investor relations. In addition to doing business on a day to day basis, Agency heads meet and exchange industry information at  annual Global Summit and at Regional Summits in APAC, The Americas and EMEA Regions. Its latest Global Summit was held in Cape Town in April and upcoming Regional Summits are being held later this year in Japan, Costa Rica and Belgium. Its 2016 Global Summit will be held in Atlanta in May, 2016.

The company’s board, in addition to Fischer Appelt, include Madan Bahal, Vice-Chairman, APAC Region, Fleur Madden, Vice-Chairman, APAC Region, Jeff Altheide, Vice-Chairman, The Americas Region, Ciro Reis, Vice-Chairman, The Americas Region, Dirk Aarts, Vice-Chairman, EMEA Region, Henning Sverdrup, Vice-Chairman, EMEA Region, Richard Tsang, Chairman, Global Development (APAC Region), Neil Green, Allard W. van Veen and Jean Leopold Schuybroek.

KIDinaKORNERCreate will Pioneer a New Model for Integrating Music and Brands

Alex Da Kid, the multi award-winning producer, songwriter, director and founder/CEO of KIDinaKORNER, one of Interscope’s most successful emerging record labels, alongside WPP, the world’s leader in advertising and marketing services, today announced the creation of KidinaKORNERCreate, a joint venture to bring music to the forefront of marketing.

Headed by Da Kid, KidinaKORNERCreate’s unique approach to integrating music and branded content allows for both artists and brands to develop intimate relationships with new audiences they might not otherwise reach. KIDinaKORNER has been extremely successful at reaching and speaking to mass audiences, in particular Generation Y. With the support of WPP, this new partnership will continue on that journey with more resources and capabilities at its disposal.

Announcing the joint venture at the Cannes Lions International Festival of Creativity, Alex Da Kid said: “Music is extremely powerful and plays a very important role in people’s lives, connecting them to a moment that is uniquely personal. Unfortunately, it can often be the last thing to get attention when programs are being planned.

KidinaKORNERCreate offers a new model, bringing music to the forefront of every level of the creative process; planning, strategy and execution. This approach will create more substantial and meaningful engagement with the audience.”

Sir Martin Sorrell, founder and CEO of WPP, said: “Alex is not only a hugely successful producer, but a genuine innovator. The ability to offer clients fresh approaches in the world of branding and content is becoming increasingly important, so we couldn’t be more pleased to announce this exciting new partnership.”

KidinaKORNERCreate will be based in Los Angeles and will work directly with both brands and agencies to create the most exciting, bold and innovative programs possible.

This venture continues WPP’s strategy of focusing on three key areas that differentiate the Group’s offering to clients: technology, data and content. WPP’s other content investments include Refinery29, China Media Capital, Fullscreen, Indigenous Media, Imagina, Media Rights Capital, Bruin Sports Capital, The Weinstein Company and VICE. The Group’s digital revenues were US$6.9 billion in 2014, representing 36% of WPP’s total revenues of US$19 billion. WPP has set a target of 40-45% of revenue to be derived from digital in the next five years.

Three of the world’s biggest names in marketing, content and community – WPP, DailyMail and Snapchat –  announced the establishment of Truffle Pig, a joint content marketing venture combining the best of global agency, newsroom and social media talent.

This new company will offer brands unprecedented reach and opportunity through content planning, development and creation as well as amplification across digital media sites and platforms.

Sir Martin Sorrell, founder and CEO of WPP, the world leader in advertising and marketing services, commented: “In a digital world overflowing with content, consumers crave quality. A next-generation company, Truffle Pig combines the best in media, content and user experience to satisfy people’s appetite for great storytelling – and inspire brand engagement, loyalty and sales.”

Jon Steinberg, CEO, Daily Mail North America, who will join the Board of Truffle Pig, said: “A truffle pig finds the rare and tasty. With the need for story-driven marketing on our sites and those of other media companies, and new ad formats like Snapchat, brands need a truffle pig. We are excited to work with the world’s leading brands, their media agencies, and all digital platforms to bring a unique take on digital marketing.”

“It’s been an amazing experience to work with the Daily Mail on their Discover channel and innovate alongside them,” said Evan Spiegel, CEO of Snapchat. “We couldn’t ask for a better opportunity than to partner with Daily Mail and WPP to create the best mobile video content.”

Truffle Pig will use DailyMail.com, Elite Daily and Snapchat as test beds for original concepts in story-driven marketing, but its content and services will extend to any digital properties the client brands wish to market on. Truffle Pig will work closely with Snapchat to create best of breed “3v” (vertical video view) ads on Snapchat.

Alexander Jutkowitz, Managing Partner, Group SJR, has been appointed Truffle Pig’s CEO. Truffle Pig will initially launch in the U.S., with headquarters in New York City, and will utilize Snapchat’s 3V video production space in Los Angeles.

Innovation matters. In the consumer product realm, it can drive profitability and growth, and it can help companies succeed—even during tough economic times. On the opposite side of the sales counter, consumers have a strong appetite for innovation, but they’re increasingly demanding and expect more choice than ever before.

Around the world, more than six-in-10 respondents (63%) say they like when manufacturers offer new products, and more than half (57%) say they purchased a new product during their last grocery shopping trip. But success can be hard to come by. Brand competition is intense and shelves are crowded.

The Nielsen Global New Product Innovation Survey polled 30,000 online respondents in 60 countries to understand consumer attitudes and sentiments about the drivers behind new product purchase intent. It’s important to note that in the eyes of the consumer, not every product that’s new to them is new to the market. As such, for the purposes of this study, we defined a new product as any item a consumer has never purchased before.

Economists may have declared the end of the Great Recession nearly six years ago, but times are still tough for consumers around the world. In fact, more than three-quarters in Latin America (78%), two-thirds in Europe and Africa/Middle East (68%) and half in North America (50%) still believe they are in a recession. And these pervading recessionary sentiments may create a barrier to new product trial, as more than four-in-10 global respondents (42%) say economic conditions and recent world events make them less likely to try new products.

As a result, affordability tops global consumers’ list of reasons for purchasing a new product, but there are regional differences in the order of importance placed on this attribute. In Asia-Pacific, affordability is the third-most important reason for purchasing a new product, behind value and convenience. North Americans place affordability second on their list, behind novelty and tied with brand recognition. In Latin America, affordability is just slightly behind brand recognition as the reason for making a new product purchase.

When it comes to the new products consumers wish were available right now, products at affordable prices was the most commonly cited attribute across all regions—by a wide margin. Forty-three percent of global respondents say they wish more affordable products were available, 14 percentage points above the next-highest attribute. North America showed the biggest differential between the top two desired product attributes—20 percentage points between wanting products at affordable prices (44%) and wanting new food products (24%). Similarly, Latin America showed a 19-point difference between affordable products (60%) and the second- and third-most-desired product types, environmentally friendly and those made with natural ingredients (41% each).

“Consumers need to stretch their money as far as possible, and they’re looking for products that stay within a budget,” said Rob Wengel, senior vice president and managing director of Nielsen Innovation in the U.S. “Savvy manufacturers are those who don’t just sell their products at lower prices or on promotion, rather they build cost-cutting into the product development and design process. Cost-driven innovation requires letting go of traditional assumptions, and it starts with understanding what tradeoffs consumers will make when they can’t afford a product.”

Other findings from the New Product Innovation report include:

In-depth looks at the top regional reasons consumers try new products.

Developed vs. developing regional appetites for new products.

The effectiveness of free samples in new product awareness/trial.

56% of global respondents cite friend/family recommendations as sources of new product awareness.

New Products have cross-generational appeal, and aren’t just for the young.

Source:Nielsen

Innovative cross-cultural agency the community at SapientNitro, was honored with the prestigious Press Grand Prix at the 62nd Cannes Lions Festival of Creativity for its “Never Stop Riding” campaign, created for the Buenos Aires Public Bike System. The campaign was also awarded two Gold Lions in the Art Direction and Illustration categories.

“To be awarded the Grand Prix out of almost 4,500 entries is an incredible honor”

“The Cannes Lions awards represent the pinnacle of creative achievement for our industry,” said Joaquin Mollá, co-founder and chief creative officer of the community. “This recognition is a testament to the creative courage born from a great relationship between the agency and the City of Buenos Aires.”

“The success of this campaign is emblematic of the tremendous political will behind the vision to transform Buenos Aires into an eco-friendly city,” said Marcos Peña, general secretary of the City of Buenos Aires. “As part of this effort, in just a few short years, Buenos Aires has already become one of the 20 most bike-friendly cities in the world.”

“To be awarded the Grand Prix out of almost 4,500 entries is an incredible honor,” said Jose Mollá, co-founder and chief creative officer of the community. “We are committed to diversity and bringing a global perspective to our clients, and so we are thrilled that a campaign that is performing so well with the people in Buenos Aires was created and produced in the U.S.”

“Never Stop Riding” brings awareness to Buenos Aires’ public bicycle system and its new automated system that includes an expansion of locations and hours of operation. The campaign is running in print and on outdoor billboards throughout Buenos Aires and is supported by advertisements on the wheels of the program’s bicycles.

To communicate the new 24-hour availability of the bikes, the campaign uses illustrations to portray the wheels of a bike as partners in a constant chase – a baby chasing a breast, a dog chasing its tail, moths chasing a light bulb, and a squirrel chasing a chestnut. Each ad incorporates a hand-drawn typeface for the tagline, “The Buenos Aires Public Bike System Now Runs 24/7,” further evoking the movement of a bicycle chain. View the ads here.

The campaign is credited with generating buzz around the ease and convenience of Buenos Aires’ public bicycle system – a program that revolutionized the city more than six years ago by creating not only more than 140 km of bike lanes, but changing the culture of how the city’s residents commute. By the end of 2015, there will be more than 200 bicycle stations throughout Buenos Aires.

“Never Stop Riding” was created by the U.S. team of the community at SapientNitro of which includes: Joaquin Mollá chief creative officer; Jose Mollá, chief creative officer; Fernando Reis, associate creative director; Marcelo Padoca, associate creative director; Fernando Reis, art director; Guilherme Nóbrega, art director; Marcelo Padoca, copywriter; Arthur D’Araujo, illustrator; Sebastian Diaz, group account director; and Daniel Gergely, account director.

The community at SapientNitro also won a Bronze Press Lion in the Fundraising, Donations and Appeal category for its cogent “Blood Donation” campaign, also for the City of Buenos Aires. The copy heavy print campaign, designed to increase awareness of the need for blood donations, highlights three cultural icons whose lives were saved by transfusions: Andy Warhol, Stephen King and George Lucas. All the ads feature a biographical story that starts off in black type, but at the point at which the person’s life was saved by blood transfusions, the color of the type turns to red. With all three icons, the campaign showcases that their most important work comes after this life-saving moment. The tagline “Give More Than Just Blood” evokes this sentiment. View the ads here.

The team at the community that created “Blood Donation” includes: Jose Mollá, chief creative officer; Joaquin Mollá chief creative officer; Ricky Vior, executive creative director; Tomas Duhalde, art director; Federico Diaz, copywriter; Sebastian Diaz, group account director; and Daniel Gergely, account director.