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Omnicom closes $100m Communispace deal

January 25, 2011

Silence reigns at Omnicom Towers on its mooted $100m deal with eCRM and insight company Communispace. Which is odd, for two reasons. First, it is the biggest deal engineered by the marketing services juggernaut since its ill-fated acquisitions of Agency.com and the somewhat more successful Organic in 2003. Second, and rather crucially – I hear the deal has gone through.

At all events, Communispace founder, president, chief executive and 10% shareholder Diane Hessan is packing her bags (now presumably heavy with loot).

The question is, what happens now? In an earlier post, I pointed out that $100m is a very steep price – yet, curiously, it does not seem to have been a stumbling block for that wily operator John Wren, Omnicom president and chief executive officer.

At the time I concentrated on the financials, and speculated that there must be something very special about this deal for Omnicom to hazard such an over-priced acquisition. That logic can be applied with equal relevance to Communispace’s clients. True, there are many the two parties have in common, plus a few that Omnicom would like to lay hands on. Yet it’s hard to ignore the conspicuous conflicts. Not just on the brand side, either. A slug of Communispace’s business flows from Omnicom’s rival agencies. Here’s an excerpt from AdAge that neatly summarises the conflict dilemma:

One reason why an Omnicom deal would make sense? Communispace lists as its clients several marketers that work with agencies under the holding company’s banner, including HP, PepsiCo, FedEx, Kraft and Campbell. But the Communispace client list also includes agencies at rival holding companies, like Havas’ EuroRSCG, Publicis Groupe’s Starcom MediaVest Group and Interpublic Group of Cos.’ Martin Agency. Were an Omnicom deal to happen, such alliances would likely have to dissolve, as would accounts with clients like Verizon, a major competitor to a big Omnicom client, AT&T.

I’d add WPP’s Ogilvy to the list of competitors as well (check out Jim Edwards at BNET on this one).

How does Wren plan to steer himself around that one? His last experience with a major acquisition, controversially managed through off-balance-sheet vehicle Seneca Investments, was not a happy one. Let’s hope history does not repeat itself.

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Creative momentum for M&C, Wieden, Del Campo and – of course – BBDO

January 24, 2011

Just like the business and financial world, the advertising creative industry has its reporting seasons. The Cannes Festival represents the annual benchmark and we are now at the interim stage, with the Gunn Report and AdAge – the industry’s biggest trade paper – issuing their verdicts.

To stretch the analogy a little further, these awards “analysts” heavily favour momentum stocks. That may be because – like their financial counterparts – they’re at heart an unadventurous lot who don’t like nasty surprises. Win at Cannes, and the chances are you’ll pick up a truckload of gongs elsewhere. King of the number-crunchers is the Gunn Report, which resembles Wall Street’s Quants in more ways than one. To quantitative analysis, which monitors an agency’s creative performance over many years and almost every conceivable awards scheme, is added a mysterious proprietary ingredient. We’re never quite sure of the relative weight put on the data. How else explain BBDO’s preeminence as top network for the fifth successive year?

Enough of this. The point I’m making is there are no great surprises at the half-way stage, although some of the results are well worth highlighting (BBDO’s not excluded). Rather pleasingly, M&C Saatchi’s print campaign for Dixons (honourable mentions at Cannes; it also picked up a top award at Epica) was Gunn’s global winner. The art of long copy is not yet dead.

With similar predictability, Wieden & Kennedy was garlanded  AdAge’s Agency of the Year, primarily on the strength of Old Spice Guy. And rightly so. Anyone who can create celebrity out of Procter & Gamble advertising deserves a medal: especially so when the now lionised brand was as hopelessly quaint as Old Spice.

While we’re there, a nod in the direction of AdAge’s International Agency of the Year, Buenos Aires-based Del Campo Nazca Saatchi. Del Campo, which has just celebrated its first ten years, is the epitome of a rolling creative revolution which has now persuaded some premier league clients to consider Latin America as their first port of call when devising a global campaign. In Del Campos’ case, it has just been added to Coca-Cola’s international roster.

The secret of its success seems to be a carefully blended balance of creativity and planning, reminiscent of Boase Massimi Pollitt in the Eighties. Here, at any rate, are a couple of examples of its work. The famous Teletransporter commercial, for Andes beer, which was lauded at Cannes:

And Chocolate Meter, for Kraft, which has apparently resulted in a 50% increase in Cadbury sales:


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