Paris-based Publicis Groupe and New York-based
Omnicom Group have decided to merge the two ad firms to create the world’s
biggest advertising company, according to a media report. The report said two
companies will hold equal share in the merged entity, to be known as Publicis
Omnicom Groupe, which will be led by CEOs of both the companies together. As
per an Economic Times report, the merged entity will have a combined market
value of USD 35 billion. The two companies will use the synergies of merged
firm to not only expand their market, but also negotiate for their clients
better ad rates for media placements on television, the Internet and in print.
The merged entity will also topple Londonbased WPP, which is currently the
world’s biggest ad company, amidst rising hopes that recovering economic growth
will turn around the fortunes of ad companies too. According to
Zenith-Optimedia, a researcher from Publicis, Ad spending across the globe will
probably rise 5.1 per cent next year.
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