Publicis-Omnicom deal fiasco implies significant fragmentation of Hispanic Media Buying Power

Publicis OmnicomAlmost a year ago, Publicis Group and Omnicom agreed to merge and the combined global Advertising Holding was to be called Publicis Omnicom Groupe. Well on Thursday both companies issued a joint statement calling off the merger.  According to the release the cultural differences of the two advertising giants were essentially too great, and didn’t bode well for running what would be one very large multinational company. The merger would have put together an entity which would have had  more than 60% of Hispanic Media Buying power as both Publicis and Omnicom manage some of the largest Hispanic media buying and planning accounts (see Tables below). Now that media planning and buying power is going to be much more fragmented, because, as Forbes points out, "Big is not a strategy".

Publicis combined agencies have  by far the largest media buying power in the Hispanic market. The merger would have added  Omnicom's media agencies OMD Multicultural and Bromley to the new group. Calculated by client billings, the new combined Publicis-Omnicom entity would have had  61.1% media buying power among the top 16 Hispanic media buying agencies.

Going Separate Ways

(Omnicom and Publicis Agencies among Top 16 Hispanic Media Buying Agencies)

Agency

Group

Key Clients

2012 Revenues (in US$ million)

Tapestry

Publicis

Gilette, Novartis, Procter & Gamble, Burger King,  Red Lobster

20.5

MV/42

Publicis

P&G, Post Foods, CoverGirl, Olay, Kraft, Continental, Wrigley

18.5

Conill

Publicis

 T-Mobile, Toyota

7.6

ZO  Multicultural

Publicis

Sonic, Verizon Wireless, Pizza Hut , Denny’s, General.Mills

8

Bromley Comm.

Publicis (49%)

Coors, Western Union, Telefonica, NBA

4.1

Total Billings Publicis

58.7

Latinworks, nTrigue

Omnicom (49%)

Domino's Pizza, Kimberly-Clark, Lowe’´s

4.2

OMD Multicultural

Omnicom

 State Farm,McDonald's, HR&Block

8.6

Total Billings Omnicom

12.8

Combined Billings

71.5

Share of Top 16 Hispanic Media Agencies

61%

Source: AdAge estimates and Portada Interactive Directory of Media Buyers

 

Creative Services, what the failed merger would have meant

In terms of creative agency services, Omnicom agencies do have higher billings than Publicis agencies in the Hispanic market. Combined billings of both groups would have amounted to US $134.1 millon.

Omnicom and Publicis Agencies among Top 50 Hispanic Advertising Agencies

Agency

Group

2012 Revenues (in US$ million)

Conill

Publicis

26.6

Lapiz USA

Publicis

12.6

Bromley Communications

Publicis

10.5

Moxie

Publicis

6.2

Total Publicis Agencies

 

55.9

Latinworks

Omnicom

29.7

Alma

Omnicom

19.3

Dieste

Omnicom

18.7

Velocidad

Omnicom

10.5

Total Omnicom Agencies

 

78.2

Source: AdAge estimates and Portada

Get ready for #Portada16 on Sept. 14 and 15 in New York City! The Hispanic Sports Marketing Forum on September 14, and the 10th Annual Hispanic Advertising and Media Conference on September 15 will provide you with the best content and unparalleled networking opportunities to succeed in Multicultural America.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

We sit down with Raul Moas, the managing director of Accelerated Growth Partners (APG), a Miami-based angel investor network that provides capital to entrepreneurs in Miami, to discuss the city’s exciting startup scene, and how it has fostered the growth of Latin American businesses.


Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

California-based ad tech company The Trade Desk, Inc. has officially gone public on The Nasdaq Stock Market.The Trade Desk debuted on the Nasdaq at US$28.75 as opposed to the company’s US$16-to-US$18-per-share projection.


How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

Sports marketing experts talk about what self created fans’ video content represents to them, at Portada’s Hispanic Sports Marketing Forum, held in New York on September 14.