Wednesday, August 7, 2013

Publicis/Omnicom merger whats next for media companies?

Last week’s announcement regarding the proposed merger between Omnicom and Publicis to create the world’s largest advertising conglomerate has created a vast wealth of questions for the outcome of the communications industry, the two main players, their component agencies and their clients. When I heard of the news just last week I had an interview with Publicis Healthcare Communications for an information research assistant position, the same day I heard about the merger with Omnicom. While major things are changing for both companies will it be for the better?
The CEOs for both companies: John Wren and Maurice Lévy, respectively, promise prosperity, but many in the industry question their motives (wouldn't you?). But with a huge merger like this, how will some of their clients react? Adweek recently posted an article called, Six Big Accounts to Watch Amid the Publicis Groupe Merger Fallout that mentioned a number of big clients, including Toyota Motor, L'Oréal and Sprint shrugged off concerns. However competitors such as WPP, Interpublic Group of Cos. and Havas are already circling to try and pick off accounts that suddenly seem vulnerable. While most coverage has noted the obvious conflict that can happen when one company represents, for example, Coca Cola and Pepsi. On the other hand, Bloomberg (and other media outlets) pointed out that the new company will have a new thump to bargain better advertising rates in media buying. But only time will time will tell....

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