With American advertising giant Omnicom and French powerhouse Publicis Groupe merging together, the two companies have now created the largest and most powerful ad agency in the world – Publicis Omnicom Group. By combining forces, the merged group will have seemingly endless amounts of funds through which they will be able to negotiate new deals and expand their already existing campaigns. However, bringing together two already successful advertising firms is a surprising move for the clients and the employees of the companies alike, and the deal raises a number of important questions for the advertising and marketing industry. How does the merger change the strategies of rival companies who are now brought under the same roof? And, in the age of digital marketing, how well will different strategies and creative talent work together? Only time will tell if the merger is successful for the clients and the firms themselves, but it certainly marks an important, and possibly very telling, landmark for the marketing industry.

The Deal

The structure of this complex deal may take some time to fully develop, but for now Omnicom CEO John Wren and Publicis Chief Executive Maurice Levy will form a co-CEO structure for two-and-a-half years. Once this initial time period is up, John Wren is set to take full control of the position. While the merger gives Publicis Omnicom Group a net-worth $35.1 billion and a pool of 130,000 employees from which they can draw talent, the deal also brings together serious advertising rivals like Coca-Cola and Pepsi, and Taco Bell and McDonald’s. The organization certainly has a much broader reach and serious buying power when it comes to developing new deals and purchasing expensive advertising space. Clients, however, may not see the mega merger in the same light as the new co-CEOs.

A Question of Technique

Advertising and marketing have changed dramatically in the digital age, with branding strategies focused on quality social media and search engine presences. While the desired end result of a high presence is the same for any firm, different companies have varying strategies for their brands in order to keep their Internet reputations high. By bringing together two separate and already successful advertising agencies, there will be an inevitable combination of strategy that may be cause for some uncertainty for clients. The uncertainty also reaches down to employees as well, who will surely be introduced to a new culture of creativity or change in strategy that may drastically change the direction of their current campaigns. Because a merger of this scope has never been accomplished before, these are questions that will have to go unanswered for some time, creating a cloud of ambiguity over the deal.

What About Loyalty?

There’s no doubt that the creation of Publicis Omnicom Group will be very beneficial for the CEOs and other executives who will gain from the combination of capital. For clients, however, the combination may not feel so blissful. What does it mean to have your advertising run by the same agency as your competitors? While there are multiple separate ad firms that work within the new Publicis Omnicom Group, they are still united under one name, which may seem counterproductive to a client who is paying to have their brand stand apart from the competition, not living together under one roof. The combination of Publicis and Omnicom has a monopolistic feel that could drive existing and future clients away. The concept for modern advertising is built upon creative ingenuity and versatile development by a company that is willing to take risks to bring about results. A corporation that is hungry for success generally seeks partners who are also driven by the need to succeed. Publicis Omnicom Group’s new buying power may be able to out wager everyone but their monopolistic atmosphere could also drive away new clients who are looking for a more driven agency. Regardless of the how successful the deal is, the results will be very telling for how the marketing industry evolves throughout the next decade.

Peg Smith is an experienced writer who has written for a number of notable publications. As a lifestyle expert, Ms. Smith is able to offer advice and insight on a multitude of topics, including those pertaining to business news.

Peg Smith is an experienced writer who is able to offer advice and insight on a multitude of topics, including business news. http://www.marketwatch.com/story/laser-spine-institute-partners-with-marodyne-medical-to-offer-the-latest-in-low-intensity-vibration-science-2013-02-19

Author Bio: Peg Smith is an experienced writer who has written for a number of notable publications. As a lifestyle expert, Ms. Smith is able to offer advice and insight on a multitude of topics, including those pertaining to business news.

Category: Business
Keywords: business news