The news that Aegis and Zenith Media have been circling each other
for the past few weeks with a view to a merger comes as no real
surprise.
Tentative talks between the two have been on and off for a couple of
years and the geographical spread of the companies makes for a neat fit
- Aegis’s Carat is the behemoth of Europe, while Zenith is the only
media dependant able to claim global credentials.
But while one insider described the talks as being at the flirtation
stage, it’s clear how the attraction began. The dynamics of both
companies are centred in London. Aegis has its headquarters in the UK
now, and Zenith Worldwide’s chairman, John Perriss, is a veteran of the
UK media scene. While other media companies are writhing with
frustration at the tardiness of their US paymasters to invest in global
media brands, this link with the UK, the birthplace of the media
independent, could be crucial.
Scratch beneath the surface of well-known media networks, and many are
revealed as bare skeletons comprising a few standalone offices, a few
in-house departments with their own headed notepaper where cohesion
demands, and equity-linked joint ventures with little in common beyond
the need to claim membership of an international operation.
Try to put a global spin on these brands and the picture is even more
laughable. Those international agency networks with their homes in the
US - where media planning and buying is still not fully recognised as an
economically viable standalone function - have been slow to view media
as a global business.
One anecdote highlights the problem. Last year, Carat was shrewd enough
to acquire a US marketing consultancy, Media Marketing Assessment, which
monitors agencies’ media performance on behalf of a number of
clients.
Monitoring, of course, means having access to media plans, schedules,
costs and so on. When a visiting UK media chief from an international ad
agency pointed out to his US counterpart - currently subjected to such
monitoring - that the agency’s competitive media data was being given
the twice over by a company now owned by Carat, his US colleague merely
responded: ’Yeah, that French media buyer, right?’
Carat has global ambitions and while no-one would suggest its US
consultancy would abuse its position by using the data for competitive
advantage, the message is clear. Many US agency heads remain naive about
recognising the business of media as a global one and the strides being
made by the European companies.
Which brings us back to why Carat is interested in Zenith - great minds
think alike. Either company would be an excellent media partner for an
agency serious about developing a top global media product. And while
the likes of Grey, MacManus and Young & Rubicam continue to drag their
heels on this issue, two of the top prizes may well be about to win each
other.
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