Washington Post: “Return of mega-mergers reflects growing confidence in economy”

. . . Direct competitors “will not be able to remain in place as is,” said Larry Chiagouris, a professor of marketing at Pace University’s Lubin School of Business in New York, but will need “greater size in order to maintain bargaining power” when working with agencies.

. . . Some mergers have the potential to create market dominance. According to analysts, that appears to be the case in the merger of leading advertising agencies Omnicom and Publicis. The merger is expected to create the world’s biggest advertising company, with a market value of $35.1 billion.

This merger “brings in a new level of scale and consolidation in different parts of the media and advertising business,” Larry Chiagouris, a professor of marketing at Pace University’s Lubin School of Business in New York, said in a recent research note.

Direct competitors “will not be able to remain in place as is,” he said, but will need “greater size in order to maintain bargaining power” when working with agencies.

Read the story in the Washington Post.

Read more coverage by Direct Marketing News [ 1 | 2 | 3 ]

Read more comments by Prof. Chiagouris about the merger on MediaPost.

 

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