Revenue by communications services sector and brand
The pattern of revenue growth also varied by communications services sector and company brand. The table below gives details of the proportion of revenue and revenue growth by communications services sector for the first six months of 2008:
as a %
|Information, Insight &
|Public Relations &
|Branding & Identity,
Healthcare and Specialist
1 Constant currency growth excludes the effects of currency movements.
2 Like-for-like growth excludes the effects of currency movements and the impact of acquisitions.
Media Investment Management continues to show the strongest growth of all our communications services, along with direct, internet and interactive, Public Relations & Public Affairs and Information, Insight & Consultancy. Direct and digitally-related activities now account for 25% of the Group's total revenues, which are running at the rate of approximately $13 billion per annum.
Public Relations & Public Affairs continued the strong growth, which started in 2006, continued throughout 2007 and into the first half of 2008, with constant currency revenues up 9.0%, reflecting the positive impact on the sector's growth of fact-based polling techniques and social networking on the web, which demonstrates the increased effectiveness of editorial publicity over paid-for publicity.
Almost 55% of the Group's revenues came from outside Advertising and Media Investment Management, in the first half of 2008, compared to over 53% last year.
Advertising and Media Investment Management
On a constant currency basis, Advertising and Media Investment Management revenues grew by 4.3%, slightly up on the first quarter, with like-for-like revenue growth of 3.8%. Reported operating margins were up by 1.2 margin points to 15.9%.
These businesses generated estimated net new business billings of £984 million ($1.919 billion).
Information, Insight & Consultancy
The Group's Information, Insight and Consultancy businesses growth improved in the second quarter, with first-half revenues, on a constant currency basis, up 7.2%. Reported operating margins were up by 0.4 margin points to 10.1%.
Public Relations & Public Affairs
In constant currencies, the Group's Public Relations & Public Affairs revenues rose by 9.0%, with like-for-like growth of 7.5%. Reported operating margins were up by 1.4 margin points to 16.1%.
Branding & Identity, Healthcare and Specialist Communications
The Group's Branding & Identity, Healthcare and Specialist Communications (including direct, internet and interactive) constant currency revenues were up 14.7%. Reported operating margins were down by 0.9 margin points to 10.7%. Particularly good performances were registered by several companies in this sector in the first half – including, in promotion and direct marketing OgilvyAction, OgilvyOne, RMG Connect, Wunderman, 24/7 Real Media and Schematic; in Branding & Identity Addison, The Brand Union, Lambie-Nairn and VBAT; and in Specialist Communications The Farm, The Food Group, Headcount, Metro Group and Spafax.