At long last in the US, Omnicom has put in place plans to shift its media strategy business out of its creative networks (DDB, BBDO and TBWA) and pooling it in OMD. This incorporates business for Visa, Pepsi and McDonald's.
In Europe, the task of developing a credible OMD network was handed to the European chief executive Colin Gottlieb. Gottlieb, since his appointment in January 2001, has been rushing about Europe forcing reluctant agencies to take on the OMD brand. The UK aspect of the initiative was unveiled last week: a newly named Manning Gottlieb OMD will now conduct joint buying negotiations with OMD UK.
It's a very good move. It lends Manning Gottlieb the scale it has lacked and gives the OMD network the strategic kudos associated with Manning Gottlieb.
What is staggering is that that it has taken Omnicom so long to get a strong network in place. But already OMD's ability to compete for and win regional and global business is manifesting itself. The network picked up the global Pharmacia account in January, just weeks before it snatched the pan-European Yahoo! business. The network still faces its real test, however. The pan-European Sony review, estimated to be worth £150 million, is looming. To defend its position it will have to beat MindShare's enviable network offering, as well as Zenith and Starcom Motive.
Omnicom is walking the talk in terms of OMD, but what about its PHD network?
Its stature in the UK is not replicated across Europe - a position that is not acceptable in an industry where size really does matter.
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