MEDIA: Will client conflicts limit merger drive?

<p>The spate of mega media agency deals, led by the Interpublic Group </p><p>and Havas, may be all about communication groups chasing after size. But </p><p>it's also about clients demanding greater accountability. </p><p><BR><BR> </p><p>It's no longer a case of whether the media or creative agency holds the </p><p>key to the client's branding strategy. That's a tired, old argument. So </p><p>too is the debate on whether independent or dependent media agencies are </p><p>more effective. What matters to clients is market share and </p><p>profitability. </p><p><BR><BR> </p><p>Which brings the argument right back to accountability, something that </p><p>clients are going to demand from their agencies - creative and media - </p><p>as they attempt to buck the harsh operating environment. Driving sales </p><p>is the name of the game, even if this creates problems that will haunt </p><p>clients years from now. Take the beleaguered tech sector - computer </p><p>brands have been chopping rates, starving margins that will take years </p><p>to fatten up again. So while clients are seemingly bent on </p><p>self-destruction, today's desperate times have forced them to demand </p><p>greater accountability and value from their communications partners. </p><p><BR><BR> </p><p>The global communications holding companies are attempting to deliver </p><p>this on a platter. And they're bulking up to deliver savings from global </p><p>bulk media buying. But will they succeed? By necessity, some agency </p><p>networks have more than one media unit to handle conflicting accounts. </p><p>Merging these units will prove to be difficult at best and a nightmare </p><p>at worst. </p><p><BR><BR> </p><p>There is a possibility that they may never merge because client conflict </p><p>will prove too difficult to resolve. </p><p><BR><BR> </p><p>Perhaps it may explain why IPG has chosen to set up Magna, a centralised </p><p>division which will only negotiate the price of media space and time for </p><p>its numerous media units, including Universal McCann and Initiative </p><p>Media. </p><p><BR><BR> </p><p>It will be interesting to watch how Havas will attempt to fit Tempus in, </p><p>and Optimedia with Zenith. With the client watching, the bet's on that </p><p>they may be forced to try creative, Magna-like solutions. </p><p><BR><BR> </p>