What Clients Think About Publicis-Omnicom Megamerger
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At the Paris press conference yesterday announcing the proposed $23 billion advertising goliath Publicis Omnicom Group, John Wren said the potential for client conflicts “is not overwhelming given size of transaction,” but he added that he does expect “difficulties.”
Among the seemingly most glaring conflicts is the prospect of archrivals Coca-Cola and PepsiCo and telecoms AT&T, Sprint, T-Mobile and Verizon living under the same holding-company roof.
While clients have generally become more flexible in devising structures to help them maintain a competitive advantage, there are wrinkles. Industry execs say some may have to re-examine agency relationships, per company requirements. And they expect a bit of sabre-rattling by clients who weren’t consulted on the deal (such as when Volvo threatened to move its business after Publicis merged Digitas and LBi without giving the car maker a head’s up).
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