End of year report: The 10 New Business Lessons of 2011
Over the past 12 months The Ratti Report has covered 1,040 new business opportunities including 438 account reviews representing over $27,790,000,000 in billings. Stories were based out of 42 states, 32 countries on 4 continents. But we didn’t stop there. Last week we crunched all those numbers and can now respectfully summit to you: The 10 New Business Lessons of 2011!
1. Fish in a barrel: GOV, EDU & ORG accounts are abundant and all over the map, figuratively and literally.
This group was our number one category with 152 account reviews. It was also the most widely spread category with reviews in 36 states and the District of Columbia. Financially, billings ranged from $100,000 to $477 million with over half of the reviews in the 7 figure range.
2. Glass Half Full: Recessions are actually good for some categories
Even while Federal, State, County and local governments were cutting budgets nationwide, tourism was on fire in 2011. This was happening because officials realized the return in tax revenue to advertising dollars spent ratio was as high as 12 to 1. Thirteen percent of all reviews were in this category representing over $563 million.
3. Most predictable category: Restaurants
We make a lot of account review predictions here at The Ratti Report and many of them come true. But there was no category where we got it right more times than in the restaurant business. Here are two perfect examples:
February 28, 2011: Global Marketing Shake-up at Burger King
March 18, 2011: Burger King and Crispin Porter & Bogusky Part Ways
April 7, 2011: Applebee’s to freshen up nearly 2,000 restaurants – what’s next?
November 7, 2011: There goes the neighborhood: Applebee’s goes into review
4. It used to be Snow meant Money and Sun meant Vacation
The account review season was turned on its head in 2011. Here are the numbers. August had 60 account reviews last year. That represents 14% of the year’s total and more than January, February and October combined. Plus August came in second in dollar volume.
5. Things are hot in the South
The Southeast region came in second behind the Mid-Atlantic with 43 account reviews. Money wise, they tied the West Coast for third place with $1.48 billion in billings.
6. Something’s about to blow in Ohio
Even though Ohio has the seventh-largest economy of all fifty states they where ranked 39th in account reviews. The numbers were so low it was staggering so keep an eye on Ohio.
7. Detroit is Alive and Kickin’
Say what you want about bailing out Detroit, the fact is it worked. $6.8 billion in billings representing 6% of all account reviews worldwide were in the Auto business.
8. NEWS FLASH: English is an International Language
Not only are there 53 countries where the official language is English, The Ratti Report covered new business opportunities and reviews in 32 countries. The UK, India, Australia, Canada, United Arab Emirates, Holland, New Zealand, Italy and France rounded out the top 10.
9. Global does mean global but it doesn’t have to mean out of reach
Seventy account reviews representing 67% of all billings in this report were global. Many of them involved companies that do most of their business in the United States but because their pitch process was happening over seas, many American agencies didn’t participate. The categories with the best opportunities for American agencies included Booze/Beer/Wine, Food & Beverage and Technology and would have represented about $1.5 billion in billings.
10. Red States and new business opportunities
I’m sure your head tilted slightly when it was mentioned The Ratti Report covered stories in only 42 States. Well, here’s the list where we found no account action: Alabama, Idaho, Utah, North Dakota, South Dakota, Oklahoma, Arizona and Iowa (which is really kind of a purple state).
*** Access to the entire 2011 data can be made available to subscribers, search consultants and the press. Non-subscribing agencies can also access the data by appointment. Just send your inquiries through this link.
- The Ratti Report does not cover account reviews with reported finalists and/or confidential reviews.
- Though the average account size in this report is over $63 million, the median account size is $8 million.
- Twelve billion dollars of the total billings in this report came from Unilever and General Motors.
- Data cited in this article was compiled from blog posts in The Ratti Report and should be considered estimated and not appropriate for republishing.
- Follow this link to subscribe to The Ratti Report.