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TOKYO SUPPLANTS NEW YORK AS AD CAPITAL

 TOKYO SUPPLANTS NEW YORK AS AD CAPITAL
 NEW YORK, April 13 /PRNewswire/ -- According to Advertising Age's


48th annual Agency Report, Tokyo has replaced New York as the ad capital, Leo Burnett Co. is the top U.S. agency "brand" and WPP Group is the leading advertising organization.
 The recession of 1991 that derailed the nation's economy and the U.S. advertising agency business managed to demote New York -- with its fabled Madison Avenue -- as the world's advertising capital.
 In Ad Age's report, covering more than 1,600 agencies, Tokyo agencies accounted for $24.5 billion in billings last year, up 8.4 percent from 1990, while New York totaled $24.1 billion, up only 3.2 percent. London finished third at $12.1 billion, followed by Paris at $9.7 billion and Chicago at $7.1 billion.
 Among the world's leading advertising organizations -- a ranking that includes the full spectrum of agency and holding company activities -- leader WPP Group, London, mixed a 2.8 percent gain from its largely three-tiered ad side with an 8.5 percentl?ine from the rest of its business to record a 2 percent drop to $2.66 billion gross income. (Worldwide gross income is the industry's terminology for revenue.)
 Interpublic Group of Cos. amassed $1.8 billion in gross income from agency networks McCann-Erickson Worldwide, Lowe Group and Lintas:Worldwide to finish second.
 Leo Burnett Co. clung to its leading position as top U.S. agency "brand" with domestic gross income of $299.1 million, down 0.1 percent. (The Ad Age definition of an agency "brand" is the core agency pitching most accounts after specialty businesses and autonomous subsidiaries from the conglomerate parent are peeled away.)
 Saatchi & Saatchi Advertising Worldwide remained a close second in the "brand" race at $286.3 million, up 3 percent. The agency vies for accounts independently of subsidiaries, Klemtner Advertising, Rumrill- Hoyt, Cliff Freeman & Partners, Conill Advertising and Cadwell Davis Partners.
 Young & Rubicam was No. 1 among Ad Age's ranking of top U.S.-based consolidated agencies, with gross income of $980.8 million worldwide, down 2.1 percent on billings of $7.3 billion. (This ranking allows the multi-tiered agencies to include all their subsidiaries and specialty units.)
 Foreign billings in general sustain the huge U.S.-based consolidated networks. Consolidated agency McCann-Erickson Worldwide got 7.4 percent growth from its international sector; BBDO Worldwide, 13.4 percent; DDB Needham Worldwide, 19.7 percent; Foote, Cone & Belding Communications, 23.7 percent; Leo Burnett Co., 19.4 percent; Lowe Group, 20.1 percent; Bozell, 13.6 percent; and J. Walter Thompson Co., 12.1 percent.
 Saatchi & Saatchi Advertising Worldwide's non-U.S. results actually declined by 1.4 percent, largely from a 4.6 percent slide in its London operation, the network's second-largest shop.
 Collectively, 1,110 foreign agencies from 80 countries had gross income of $13.3 billion on billings of $91.2 billion, according to the Ad Age Report. A reflection of the power of the U.S. agencies abroad is that they account for about one out of every three dollars spent by agencies.
 Low growth in the United States left the Top 500 U.S. agencies with revenue gains of only 2.9 percent, to $7.7 billion on $56.2 billion in U.S. billings, actually a decline when inflation is factored in. Additionally, the figures are well off the pace of 1990's 6.2 percent advance from the same Top 500.
 Other telltale signs of low growth at home are seen in the 3.2 percent reduction in the agency workforce, translating into a loss of 2,108 full-time jobs to 70,200 for the Top 500 agencies, and declining volumes in billings for each of the top five ad media.
 Agency struggles in the United States have centered more on the large than the small shops. Gross income among the Top 50 U.S. "brand" agencies (those billing $200 million or more) grew only 1.9 percent, while the remaining shops increased an aggregate 4.7 percent.
 Ad Age reports that U.S. media volumes, dominated in most cases by the big shops, have taken a beating. Network TV, the leading recipient of agency billings, pulled $10.3 billion from brand agencies, down 0.8 percent from these agencies in the prior year. Cable TV grew 11.2 percent and farm publications 12.1 percent, the only two among the 14 media monitored to gain more than 10 percent.
 -0- 4/13/92
 /CONTACT: Meryl Suben of Advertising Age, 212-210-0716/ CO: ST: New York IN: ADV SU: ECO


GK-TS -- NY014 -- 7578 04/13/92 09:01 EDT
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