3 MN Ad Agencies Affected By Omnicom-Publicis Merger
The merger of advertising giants Omnicom and Publicis will bring Minneapolis agencies Martin|Williams, BBDO Proximity, and Fallon under the same roof—but it won’t significantly affect the firms’ daily operations, according to a report by the Star Tribune.
Publicis Groupe, headquartered in Paris, France, and Omincom Group, Inc., which is based in New York, announced this weekend that they plan to combine their communications, advertising, marketing, and digital services. The resulting Publicis Omincom Group represents combined 2012 revenue of $22.7 billion.
Martin|Williams and BBDO Proximity operate under the Omnicom umbrella; meanwhile, Fallon is part of Publicis.
Despite the new joint venture, the local agencies’ leaders told the Star Tribune that the Omnicom-Publicis merger won’t affect day-to-day procedures. Rather, the joint effort will provide the local firms with new resources and clients.
“The merger won’t impact our operations in any big way, but the eventual impact will be access to additional services,” Neil White, BBDO Proximity’s CEO in Minneapolis, told the newspaper.
“It’s business as usual, and our day-to-day operations will not be affected,” Fallon CEO Mike Buchner told the Star Tribune. “However, when the deal is completed, sometime in fourth quarter of this year or first quarter next year, Fallon and its clients will have access to a deeper pool of global resources and broader capabilities than we have today.”
Glenn Karwoski, who heads Martin|Williams’ PR business and “innovation” practice, wrote in a recent Twin Cities Business blog post that, while greater resources should lead to a greater ability to innovate, a key issue that remains is whether the merged company can find a way to incentivize collaboration.
The Star Tribune pointed out that the new Publicis Omincom Group will continue to face competition in the Minneapolis advertising industry. New York-based Interpublic Group—the parent of Carmichael Lynch and Campbell Mithun—and New York-based MDC Partners—the parent of Colle+McVoy—both have a significant presence in Minnesota. Large, independent agencies such as Olson, Periscope, and Risdall Marketing Group also have a strong foothold in the local advertising market. (To view a list of the largest ad agencies in the state, click here.)
The merger isn’t the only recent development to affect Fallon. In June, former executive Rob Buchner left the firm to become Campbell Mithun’s new CEO—a move that ended the Buchner brothers’ time working together at Fallon.