Publicis and Omnicom Merger
Two rivals in advertising decided to partner up to make one
big advertising company. Publicis one of the big advertising companies in
France partners up with an American advertising company called Omnicom
merge together to create one. In an interview with the CEO of
Publicis a statement is made saying “You have a
contract with Coca-Cola; Omnicom works for Pepsi. According to the Bank of
America, the merger may involve conflicts of interest between clients.” Maurice Levy then says “This question has been raised by
our competitors. But at WPP, for example, their clients within the same group
include Colgate-Palmolive, Unilever, Procter & Gamble, Kimberly-Clark and
part of Estée Lauder [Editor's note: all are multinational corporations that
produce hygiene-related consumer products]. The fact that we serve clients who
operate in the same market segment is part of normal life for our agencies. We
do not plan to consolidate our networks. Clients will continue to have the same
number of agencies to choose from and to be served by their current agencies.
The potential for conflicts is hardly a revelation, and it's up to us to find
solutions. We're working on it.” Not only do they have to think about
all of their clients but the location as well. They say that the new location
for their company will be in the Netherlands because a lot of big European
companies have their headquarters there but they will still have the operating
offices in New York and Paris. All of
their efficiencies valued up to 500 million just from the combination of the
two companies.
No comments:
Post a Comment