European Report

AUSTRIA

ECC Publico takes the top slot once again in the Austrian league table, supplied by Bestseller.

In a similar situation to Germany, a number of market leaders have not been able to supply information because of the Sarbanes-Oxley Act.

The agencies unable to participate include Trimedia and FCB, which were ranked third and sixth respectively in 2002. Others were unable to enter for other reasons. For example, the Skills Group and Pro & Co have been in talks about a potential merger.

As a result of the absence of some of the key players, the top ten consultancies only generated a total fee income level of £20.6m compared to £27m the previous year.

The Austrian PR industry is now feeling the pinch of an economic downturn. According to Bestseller, budgets were cut back in 2003, while companies and organisations reduced the number of pitches.

ECC Publico, which took the top spot, is perhaps a good indicator of the state of the industry: the firm's fee income grew by only 0.1 per cent, which translates to just £6,700. Hochegger Communications at number two dropped fee income by one per cent, while third-placed Ecker & Partner grew by eight per cent from £2.4m to £2.6m. There was more positive news from Menedetter PR, however, which performed even better and added ten per cent to the previous year's fee income, while Ikp saw a fee income decline of ten per cent.

TOP FIVE AUSTRIAN CONSULTANCIES

Rank Company Fee income pounds Growth

2003 2003 2002 %

1 ECC Publico 6,845,105 6,838,421 0.1

2 Hochegger Communications 5,808,916 5,869,078 -1

3 Ecker & Partner 2,673,859 2,473,510 8

4 Menedetter PR 1,049,565 955,745 10

5 Ikp 915,615 1,015,833 -10

All figures relate to the year ended December 2003. Fee income = PR fees

only. Data supplied by Bestseller. Exchange rate conducted 8 June 2004

GERMANY

The Sarbanes-Oxley Act has, once again, made it difficult to collect detailed and reliable market information on all agencies operating in the German market.

However, PRReport's Top 100 league table of independent consultancies shows an average growth of around two per cent in 2003 compared to 2002.

Leading market players are missing this year, such as Media Consulta, which claimed the number three position in 2002, and ECC Kohtes Klewes.

Another agency which was unable to submit figures is Weber Shandwick, which has recently been through a restructuring process in Germany.

While fourth-placed Citigate PR saw fee income increase by 66 per cent, and Borgmeier Media Communication, listed further down the table at number seven, boosted its fee income by 32 per cent, others witnessed a decline. For example, financial specialist Kirchhoff Consult fell by 18.4 per cent, while Haubrok saw fee income decline by 30 per cent. Hunzinger, also ranked seventh, dropped by 21 per cent.

Clients' budgets were further downsized in 2003, which led to increasing competition between PR firms. This has been exacerbated by the fact that German client firms are now tending to employ more in-house PROs instead of outsourcing on a large-scale basis. So, the battle between agencies for the smaller projects has become more challenging.

TOP FIVE GERMAN CONSULTANCIES

Rank Company Fee income pounds Growth

2003 2003 2002 %

1 FischerAppelt Comms 8,788,336 8,575,240 2

2 GCI Hering Schuppener Gruppe 8,114,153 8,114,153 0

3 Ahrens & Bimboese 6,483,302 6,015,435 8

4 Citigate PR 5,888,880 3,543,052 66

5 Oliver Schrott Comms 5,033,701 4,786,361 5

All figures relate to the year ended December 2003. Fee income = PR fees

only. Data supplied by PRReport. Exchange rate conducted 8 June 2004

SWITZERLAND

For the second year in succession, 2003 saw Swiss PR agencies' fee income dropping. For a sector that had seen only growth since the 1980s, the recession has hit hard, though agencies with local and regional clients have fared better. Switzerland's unusual PR landscape is characterised by an absence of medium-sized agencies, and small firms have been happier with progress in the last year than the larger shops.

Trade association BPRCA head Ulrich Bollmann says: 'Local segments have been more stable than assignments with international clients. And in a shrinking market as we've had in the last two years, every agency picks up what it can, so I don't think we'll see a trend towards specialisation.'

BPRCA members feel that Switzerland's economy is on the up. It needs to be: the country's top five PR agencies saw dips in business, except for Peter Butikofer & Co, whose fee income rose just one per cent. Wirz Corporate fell 46 per cent from £4.5m to £2.4m, while Farner PR and Consulting retained its number one position despite a 12 per cent drop.

The BPRCA has expanded from 21 agencies to 25, with new members including creafactory and Zahner & Partner. But there was also some consolidation in 2003, notably Bern-based Ruetz & Partner's absorption into Frei Kirchgessner Partner Comms.

And even though it predicts a more profitable 2004, the BPRCA itself is considering a possible merger with Swiss advertising trade body BSW.

TOP FIVE SWISS CONSULTANCIES

Rank Company Fee income pounds Growth

2003 2003 2002 %

1 Farner PR and Consulting 4,504,470 5,117,380 -12

2 Peter Butikofer & Company 3,629,260 3,599,271 1

3 Wirz Corporate 2,442,131 4,562,701 -46

4 C-matrix group 2,160,072 2,224,527 -3

5 Mediapolis 2,085,385 2,128,830 -2

All figures relate to the year ended December 2003. Fee income = PR fees

only. Data supplied by BPRCA. Exchange rate conducted 8 June 2004