Publicis - Omnicom merger: The impediments ahead

Though the merger takes the advantage of scale to a whole new level, challenges such as client conflict, increased need for transparency & talent retention come to the fore

e4m by Priyanka Mehra
Published: Jul 30, 2013 8:31 AM  | 3 min read
Publicis - Omnicom merger: The impediments ahead

Mergers and consolidations seem to be the order of the day. Post the Aegis-Dentsu merger, the newly formed Publicis Omnicom Group has created waves – and with combined 2012 revenue of $22.7 billion and a combined market capitalisation of $35.1 billion – might we add, for all the right reasons.

In today’s crunched economic scenario, a merger definitely adds to the collective strength of a group. It provides a definitive punch by taking the advantage of scale to a whole new level, adding profitability to the bottomlines in these times of reduced margins, and boosting investment to keep up with the dynamic changes brought about by technology.

‘Client conflict’ has been another buzzword related to this merger, with Coca-Cola and Pepsi, and Verizon, T mobiles, AT&T and Sprint – now all under the same holding company. How the merger pans out in this aspect, specifically when it comes to India, is something we look forward to.  

“How you manage client and client conflict, especially in a country like India, which is many countries rolled into one given the complexities of the market, is critical,” said Ashish Bhasin, Chairman India and CEO South East Asia, Aegis Group.

At the press conference that took place on Sunday to announce this merger, the Co-CEOs – Omnicom CEO John Wren and Publicis Groupe CEO Maurice Lévy – assured all present that there would no difficulties in terms of clients concerns.

Bhasin also emphasised on the importance of how things are handled post the merger. Undoubtedly, lot of synergies, specialisations, expertise, and the advantage of scale can be availed, but significant challenges lay ahead, he stated.

“The merger surely adds more mettle to the new combination, which will strengthen their leverage on media. However, this will increase the need for transparency even more, when it comes to internal as well as external clients. On the conflict front, as long as agencies are capable of convincing the clients about Chinese walls, this is no longer a conflict,” shared Pradeep Iyengar, President Indian Operations, EMM.

Whilst speculation is rife on the possibility of clients being poached by rival agencies due instability caused by the merger, there is no doubt that a merger of this scale brings benefits in terms of enhanced power of scale, which is a precious tool in the media business today. If the newly formed ‘Publicis Omnicom Group’ was to use this power in negotiation and consolidated buying, it is bound to impact other networks as well. 

The other critical aspect of the merger is the strength of more than 130,000 employees. Handling the human quotient becomes even more important now.

“Talent management can also be an issue. The media business is one that is run by people, not machines in factories, and this can be a huge management challenge. If not handled well, the whole can become smaller than sum of the parts. It is extremely important to retain key people or the whole exercise can become counter-productive,” observed Bhasin, stressing on the importance of talent retention post the merger.  

It will be quite interesting to see how this marriage of ‘equals’ – all set to give other networks a run for their money – works out in the times to come.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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