Omnicom-Publicis merger ‘will end WPP’s dominance in Asia’

Publicis Groupe logoOmnicom GroupeOmnicom and Publicis Groupe are to merge to form the world’s largest advertising agency group, according to reports.

The news emerged from a single source in a story by Bloomberg over the weekend, and was confirmed earlier today.

The merger, which would create a company worth $35bn, will end the dominance of WPP in Asia, an industry insider has said.

WPP is the largest advertising agency group in Asia, while Japan’s Dentsu is the largest single agency brand. Dentsu merged with Aegis Media four months ago.

“The deal would pose a serious threat to WPP and bring an end to their dominance in Asia”, a senior source who works at one of the companies involved told Mumbrella.

“In Asia, Omnicom’s media agencies are relatively weak, but its advertising agencies are strong. Publicis Groupe is stronger in media and weaker in creative. So the deal would suit both very well in this region,” said the source.

Omnicom owns ad agency brands DDB, BBDO and TBWA and media agencies OMD, PHD and M2M. The company plans to roll out a new global media agency brand, it emerged earlier this year.

Publicis Groupe owns ad agencies Leo Burnett and Saatchi & Saatchi and media brands Starcom MediaVest and Zenith Optimedia.


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