ACA raises red flag over proposed Omnicom-Publicis merger
September 30th, 2013 | ACA Team,
By ACA staff
The announcement this summer that Omnicom and Publicis will merge ‒ effectively creating the world’s largest advertising holding group ‒ means a host of competing brands may land under a single ownership.
While there may be positive economies of scale and a better understanding of the complex digital platforms resulting from the merger, ACA is still alert to the possible risks that excessive consolidation can mean for a healthy marketplace. Omnicom owns BBDO, TBWA, DDB, OMD and PHD, while Publicis has Leo Burnett, Saatchi & Saatchi, Digitas, Razorfish and Starcom Mediavest.
In Canada, it is estimated the combined company would enjoy a 43% share of ad billings if the merger is allowed. As a rule of thumb, any merger that will result in excess of 40% market share must be reviewed by the competition authorities.
The ACA has a long track record of championing competition and transparency in the advertising sector, and we will continue to do so in this case to the Competition Bureau, which is reviewing this merger. Stay tuned for further developments.
