Monday, July 29, 2013

Pubic-Com, where advertising's future is clear


It's difficult to predict what the fallout will be with the Publicis-Omnicom merger, Pubic-Com as George Parker calls it.  It creates the Uber-Holding Company that will shake off many of the executive level types to reduce duplication.  It will unchain the galley slaves (the ones who do the actual work), despite its claim to the contrary,  at the Leo Burnett, Publicis, Saatchi & Saatchi, Starcom, ZenithOptimedia, Rosetta, Rokkan, VivaKi and Razorfish from Publicis, and BBDO, TBWA and DDB, Rapp, Omnicom Media Group, Organic, Proximity, and Tribal from Omnicom.  But who really believes a bunch of lawyers and accountants? Believe me, these assholes will squeeze every dime they can out of the new company except when it comes to their own salaries and "performance" bonuses. 

Maurice Levy meets with the creative department

The one thing I haven't seen mentioned is what happens to the thing it is supposed to produce.  There is no word about the advertising, though both companies seems to have given up on that.  It's unclear how the new company will deal with client conflicts, such as Pepsi and Coke, GM and competing automakers (including Mercedes, Volkswagon and Nissan among others), McDonalds and Burger King. I'm sure the new company will swear to build a Chinese Wall around these businesses but I don't think the smart clients will buy into that.  But more nimble agencies, like W+K could benefit if clients who can see through the bullshit decide move elsewhere. 

The reason behind all this seems to be control of media buying, both conventional and digital.  The new company will certainly be the gorilla in the room as it battles Google, IBM, and Facebook for control of data.  What the brains behind the merger seem to have forgotten is that no amount of data insight will create better, more effective ads.  Technology is just a tool, a commodity, not a strategy. Without breakthrough creative ideas, the Big Holding Companies have diluted the quality of the end product to the point where it is more like bottled water: cheap to make and totally flavourless, only now it comes in Big Gulp size. 

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