TalentZoo.com |  Flack Me |  Digital Pivot |  Beneath the Brand Archives  |  Categories
What Does the Publicis-Omnicom Merger Mean?
By: Dwayne W. Waite Jr.
Bookmark and Share Subscribe to the Beyond Madison Avenue RSS Feed Share
In case you haven't heard by now, Publicis and The Omnicom Group are joining forces to merge in equal fashion to become the world's largest advertising and media company, the Publicis Omnicom Group.

130,000 employees. A market value of $35 Billion.

What does it all mean?

It means that we were unfortunately more accurate when we thought when we warned about the next age of agency consolidation in our industry. WPP CEO Martin Sorrell said himself in a Reuters article that with this deal, further consolidation within the industry "is inevitable." Does that mean that he is showing his hand, and WPP will move to buy up Havas, MDC, or IPG?

Hard to say.

But with this newly formed group, Publicis Omnicom controls a staggering 20% of all global media spend, and nearly 40% of media spend in the U.S.

Talk about controlling the conversation.

As media companies deal with social media, and brands deal with presenting better bottom lines while squeezing partners for all they're worth, holding companies put themselves in a competitive position. Because they can spread out resources and weather financial troubles better than individual agencies, holding companies can offer more options than your typical indie agency.

Naturally, the rest of AdLand isn't too happy about the move.

The majority of the critics spoke out that this move won't make agencies or their activities more creative. We wholeheartedly agree, and we would say that the Co-CEOs, Levy and Wren, would also agree. This move was a pure business move to align comparative advantages to survive in the marketplace and please shareholders.

Creativity, they would hope, would be the by-product of holding good agencies that recruit good talent. 

Also, the Forbes article says that there was fancy wording for layoffs, though other sources say that no layoffs are expected. Either way, it remains to be seen. There were also reports indicating that the group may have to sell some of its smaller groups in order to bypass all anti-trust laws in the approximately 45 countries the group will be operating.

So what does it all mean? Honestly, no one really knows yet. This jumbles up the competitive landscape, and it groups a bunch of historically awesome shops together under one roof. Can these shops co-exist? If they like the resources provided by POG, they don't have a choice.

Out of all the smaller moves we have seen, this is the first big move. And the holding companies and big shops are just getting started.

Bookmark and Share Subscribe to the Beyond Madison Avenue RSS Feed Share
blog comments powered by Disqus
About the Author
Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.
Beyond Madison Avenue on

Advertise on Beyond Madison Avenue
Return to Top