By Invitation: Geetanjali Bhattacharji: Exciting times ahead for the media planning and buying fraternity

29 Jul,2013

By Geetanjali Bhattacharji

 

The new entity OMC controlling over 40pc of global advertising budgets has several  implications:

 

1. Shrink  – lesser competition

WPP’s Martin Sorrell will follow suit with another merger and the competitive pie will shrink.

 

Marketers will have no option but to work with competing agencies, now as part of one group. Confidentiality, strategic controls and disclosure walls will collapse internally in the guise of “synergy”

 

2.  Clout – greater buying muscle

Greater consolidation of media buys will imply higher AVRs ( Agency Volume Rebates) and the ability to push rates in the direction they desire. How these get accounted for within the new entity remains to be seen…

 

The newly found entity could exert immense clout over the market leading to an imbalance of sorts.

 

3. Scale - do clients buy into size or talent?

The success of small creative hotshops in recent years has shown that marketers are hungry for partners who are committed, agile and responsive. It remains to be seen how the collaboration will manage that and deliver outstanding work despite the distractions of size…

 

With the supply side becoming more and more monopolistic in nature, it becomes the responsibility of every marketer to make partnership performance more and more measurable.

 

The birth of a powerhouse could well imply the rise of documented transparency and accountability.

 

GeetanjaliBhattacharji is CEO-Marketing Services Audit at Spatial Access Solutions

 

Post a Comment 

Comments are closed.

Today's Top Stories
Videos