Omnicom Pools Resources To Form UK Buying Point
Omnicom-owned agencies OMD UK, Manning Gottlieb OMD and PHD Group are bringing together their media negotiating operations to form the UK’s largest single buying point.
The consolidated buying giant will be called OPera and will have more than £1 billion worth of media billings under its control. It will be run as a joint venture company with OMD and PHD Group as its main shareholders.
OPera will handle negotiations across all media, with the exception of outdoor, and for all agencies in the two shareholder groups; OMD UK, Manning Gottlieb OMD, PHD, PHD Compass, Rocket and PHD Confidential.
The merged entity will also act as a research resource that both agency groups can access. However, all strategic planning and executional buying will remain within the three agencies in an attempt to protect client confidentiality.
OPera will be run by OMD’s broadcast director, Marc Bignell and PHD’s investment director John Overend. PHD UK press director Adam Crow and OMD UK director of radio Jonathan Gillespie will also move over to the new entity, which will launch at the beginning of July.
Commenting on the initiative, OMD UK chief executive, Nick Manning, said: “Our market continues to mature and the opportunity to be number one is not open to everyone. Our marriage of scale and intelligence will set a new standard in the industry, with knowledge and insight key discriminators beyond price and quality.”
PHD chairman, Tess Alps (Pictured), added: “OPera is a fantastic development and a true meeting of minds. The OMD and PHD groups share many values and a vision of a media investment company run by people who care as much about delivering great plans as its shareholders do.”
A growing number of agency networks are combining the buying operations to help them secure bigger deals. WPP recently consolidated its negotiations with the launch of Group M and Interpublic’s Magna has been in operation for some time.
There had been speculation that Publicis was looking to increase its media-buying muscle with a merger of ZenithOptimedia and Starcom MediaVest, but ZenithOptimedia’s new global chief executive, Steve King, recently said these plans had been put on hold (see NewsLine Interview: Steve King – Global Head Of ZenithOptimedia).
Omnicom: www.omnicomgroup.com
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