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