Advertising is the
bread and butter of the graphic arts industries. So I’m sure many
companies will have taken note of the recent merger between the two
advertising giants Omnicom and the French Publicis Group.
The birth of Publicis
Omnicom was toasted over champagne in Paris on July 28th,
and for good reason — with combined 2012 revenues of $23 billion
and a market value of $35 billion, the firm overtakes British-based
WPP as the word’s largest advertising and marketing agency. It will
now be responsible for about 20 percent of advertising spending
worldwide.
Yet this merger hasn’t
happened for no reason. In these days of analytical services fighting
over who gets to advise clients on where best to place ads,
advertising agencies are finding it increasingly difficult to win
work. The two firms predict the merger will help them cut costs by
around $500 million a year, reflecting their need to streamline
cash-flow — a far cry from the liquid lunches of the 60s!
This, however, may be
good news for print companies. With an investment in some analytical
software proving the power of print advertising, they could take on
the role that used be played by the agencies, and advise their
clients themselves on the best options available. Additionally, with
the design skills prevalent in the industry, companies may move to
offer the service of creating or helping with campaigns, again
reducing the need for an agency. The cost that is saved from cutting
out the middle-man can then be passed down, as marketers have a
larger budget to spend on print.