The International Advertising Festival is supposed to be for the creatives, but ad execs assembled here are playing thematchmaker game. That is, “Who will be involved in the next big merger?”
The landscape among the mega-agencies is certain to change further, resulting from two startling developments in the last six weeks: WPP Group’s acquisition of Y&R Inc., and Publicis Groupe S.A.’s buyout of Saatchi & Saatchi.
Not too long ago, it was almost unthinkable that Y&R would be under the roof of any other agency, though there had been rumors that the New York-based parent of Y&R Advertising and Burson-Marsteller was interested in merging or being acquired.
Now that Paris-based Publicis has grabbed Saatchi & Saatchi, observers believe that other agencies will be forced to combine with firms seeking to expand their portfolios of services.
Among shops mentioned as merger possibilities are True North Communications, including flagship FCB Worldwide; Grey Advertising; and Cordiant Communications, which includes Bates Worldwide and 50 percent of Zenith Media Services.
Omnicom Group, parent of BBDO Worldwide, DDB Worldwide and TBWA/Chiat Day, might want True North, bringing on another global network in FCB, observers theorize. However, John Wren, Omnicom chief executive, reportedly is opposed to adding another global network.
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Other speculation here included Grey Global Group teaming with Cordiant, and perhaps some other major independents like Deutsch Inc. and/or Cliff Freeman & Partners, both New York, and Portland, Ore.-based Wieden & Kennedy merging or being absorbed .
B COM 3 Group, the result of a merger earlier this year between Leo Group and MacManus Group, which is 20 percent owned by Japanese giant Dentsu Inc., might be on the prowl.
Interpublic Group of Companies, whose flagship agency is McCann-Erickson Worldwide, also could be in an acquisition mood.
An Omnicom-True North combination, which would actually be an Omnicom acquisition of TN, might make the most sense because they share Chrysler Corp. as a client.
Even Publicis might be in the bidding. Publicis still owns 10 percent of True North. And no doubt, Publicis chief Maurice Levy would like to see his investment grow if TN were gobbled up or became a merger partner.
– The U.S. Army is near a decision on its $125 million recruitment advertising account, and sources indicate it may be leaning to Campbell-Ewald Advertising in Detroit. Leo Burnett USA is the other finalist.
– Newspaper Services of America (NSA), a Downers Grove-based newspaper-focused media management unit of Interpublic Group of Companies, formed a division called Innovative Media Solutions, signing three clients, including the San Diego Union Tribune, for which it will help develop an Internet shopping guide, and La Raza, a Hispanic newspaper published in Chicago, for which it will help analyze circulation and advertising potential. Skip Westerhold, NSA president, will direct the new division. NSA three years ago formed Smartcirc!, a circulation strategies operation that will become part of Innovative Media Solutions. Smartcirc! serves nearly 70 newspapers.
– Wade Baxter, recently with Playboy magazine, joined Liquor.com, a Chicago-based global spirits delivery service, as VP-sales. Mike Polisky, recently with Jim Beam Brands, became VP-strategic marketing for this dot-com, both reporting to Gail Zelitzky, chairman-founder-chief sales officer . . . .Rhea Campbell to national sales manager, Fairmont Hotel Chicago . . . .Cynthia Kitching, director of broadcast traffic at DDB Chicago, also elected a VP . . . .Karen Armstrong became VP-human resources, extendedcare.com in Northbrook.
– Chicago-based Golin/Harris International is absorbing the New York, London and Frankfurt offices of Ludgate Communications, both being units of Interpublic Group of Companies.
Strictly Personal: Birthday greetings on Friday to attorney Erin L. Bishop (Kirkland & Ellis); Stan Greanias, 51 (Sara Lee Corp.); meat wholesaler Edgar C. Staren, 68; Jim Cook, 52 (Daily Herald); and Dennis C. Gilley, 54 (Inns Development & Management). On Saturday to Bernie J. DiMeo, 81 (son Bernie heads his own ad agency); Mary Berner, 41 (Fairchild Publications CEO, New York); talent representative David Montagano, 45; and Eric Harkna, 60 (BBDO Chicago exec being feted by family and friends at surprise party in his native Estonia). On Sunday to Ian Miller, 50 (Kemper Lesnik); Lou Beres, 64; A.G. Atwater, 57 (Amurol); Jennifer Ziltz, 29; and Arnie Matanky, 70 (Near North News).