Deepening crisis in media leasing agencies

The marketing network announced business results today media leasing agency and programming of the advertising plan in Serbia for 2020, as part of the Agency Report study.

Despite the decline in revenue and net profit in 2020, Direct Media United Solutions, for years, convincingly retains first place in the rankings for both financial parameters. This agency, last year, recorded a decline in operating income by 18.48%, while net profit fell by 28.87%. The number of employees also decreased by 10.94%. Since 2017, another legal entity has been operating within Direct Media Direct Media Communications, with the same legal representative. This agency recorded an increase in operating income by 3.65% and a decrease in net profit by 31.46%.

In second place in the table by operating income is the agency Media Pool. This agency recorded a decrease in operating income in 2020 by 18.40%, but an increase in net profit by 32.61%. The number of employees did not change.

Agency Universal Media it remained in third place in terms of operating income from 2020 and in fifth place in terms of net profit. This agency recorded a decrease in operating income by 24.16% and a decrease in net profit by 66.6%. The number of employees in 2020 fell by 3.57%.

OMD Media in 2020, it climbed from fifth to fourth place in terms of operating income, and from ninth to sixth place in terms of net profit. This agency recorded a drop in operating income of 8.93%. On the other hand, the net profit of OMD Media in 2020 increased by 33.23%, and the number of employees increased by as much as 56.25%.

In fifth place in terms of operating income and fourth in terms of net profit is the agency Media House. This agency recorded a decline in all financial parameters – 23.88% in operating income and 17.75% in net profit.

Agency Dentsu Aegis Network, which was founded in Serbia in 2018, recorded a drop in revenue of 20.26%, as well as a drop in net profit of as much as 98.18%. Huge and stable growth was recorded by the agency Nova Communications which increased revenue by 115.28% and net profit by 365.59%, as well as the number of employees by 5.56%.

A total of 25 legal entities are registered with the Business Registers Agency of the Republic of Serbia, which are primarily engaged in leasing media and programming the advertising plan.

The total operating income of media leasing agencies in 2020 fell by 15.73% and net profit fell by 24.55%. The number of employees in media leasing agencies also decreased by 3.06%, and in 2019 it amounted to 412.

Media leasing agencies already recorded negative business results in 2019, and COVID-19 and the budget freeze in 2020 only further deepened the crisis, which caused a significant drop in revenue, net profit, and the number of employees in this group of agencies.

You can see comparative ranking lists with financial results for this group of agencies on the website http://adwork.network/agency-report

Note: For the analysis, publicly available data of legal entities were used, which were published on the website of the Agency for Business Registers of the Republic of Serbia.


Source: PORTAL by marketingmreza.rs.

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