Over the weekend, Omnicom Group and Publicis Groupe, two advertising giants, announced a “merger of equals” to become a $23 billion organization, making it the largest advertising holding company in the world. To some, this is just news to skim through, but for my advertising/PR-crazed friends and me, it was news worth reading in depth. Although it affects more advertising agencies, a few PR firms were also swept into the merger. Some of which I fondly, including FleishmanHillard and Porter Novelli – both have Austin offices.
After reading my fair share of articles, tweets and shares, I’ve come to the conclusion that this merger is overall a positive for the industry. Two giants with a variety of clients coming under one roof to become a powerhouse was a smart move that could potentially empower growth and new techniques across agencies.
Unfortunately, not all are too content with the merger. The newly combined holding company will result in corporate brands Pepsi and Coca-Cola to be under the same roof. However, smaller companies within the organization will be able to have a wider reach and claim more clients.
From a PR stand-point, PR agencies are not affected as much as advertising agencies. However, the lines are already so blurred between advertising and PR, the course of action for the merger will result in an increase of combining of both paid and earned media.
Whether you’re a fan of the merger or not, you have to admit that this is a landmark event for the advertising and PR industry. An event that not only dethrones WPP’s dominance in the industry, but also creates the potential for continued expansion of diversity and reach.