The Publicis Omnicom Groupe

Some thoughts on the possible impacts on digital advertising with The Publicis Omnicom Groupe.

1. Traditional vs. Digital Ad Spending

Publicis has been known for its digital expertise built up over the years with acquisitions of various digital agencies such as Digitas, Vivaki and Razorfish. What this could mean for existing clients (from Omnicom) who have long largely depended on traditional advertising? They could be looking at tapping on Publicis’ digital capability by transferring traditional media spending to the digital side.

In essence, more digital advertising spending.

Does this mean more business for the digital agencies?

Yes! But…  The digital agencies will be competing within the group to win new businesses! And one way to win new businesses? Lowering agency costs.

Similarly, digital agencies outside the The Publicis Omnicom Groupe (e.g. WPP) may go down the same route. (Which was exactly what happened to traditional creative agencies, undercutting costs is one almost sure way of winning new accounts!)

In a nutshell, costs may get lower when it comes to hiring a digital agency. Digital advertising is going to be cheaper?! Good news for marketers, bad news for agencies.

Maybe on not such a grim note, creativity will come into play too. On to the next point…

2. Higher Expectations of Creativity in Digital Advertising

Outspending your competitors to gain more coverage may be one way to go, but grabbing the attention of your target audience is the challenge. How are we going to cut through the clutter?

I suppose next up, we may expect to see new fanciful ways of digital advertising.

3. Digital Advertising Competition Between Client Rivals & The Smaller Companies

A quick background (two of Publicis’ and Omnicom’s clients)

Omnicom’s clients: Pepsi & Unilever

Publicis’ clients: Coca Cola & P&G

With the merger of Publicis and Omnicom, competitive digital advertising may get interesting between the client rivals. Apart from larger ad spendings, more banners, more outbidding and outwitting, we are also looking at competition from the smaller companies.

Will this mean it will become harder for smaller companies to be seen on the digital realm given the bidding system in digital advertising? Let’s give the Digital Strategists an opportunity to shine on this one.