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MadScam

Why bean counters should stick to beans! 

Comments:4   Add your comment

I'm in advertising, right? So, I don't pretend to be an economist, but I am always mystified when I read about the big conglomerates (WPP, Omnicom, IPG, Publicis) buying up hundreds of new media companies for millions of dollars, after which the founders of these companies take their new found riches and go off and start something else.

Meantime the conglomerates eviscerate the companies they have just bought by making them conform to their rigid, top heavy management style, so stifling exactly the innovation and entrepreneurship that attracted them to them in the first place.

The conglomerates then proceed to lay off most of the staff of the new company before folding them into one of their BDA's, where they soon disappear. The conglomerate then goes off and repeats the same exercise. As I said, I'm no economist, but it sounds incredibly stupid to me.

Published Apr 21 2008, 11:35 PM by George Parker
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by Hubert Boulos
April 22, 2008 1:00 PM
 
Though you're absolutely right for holdings like IPG I don't believe Omnicom has gone down that path
 
 
by George Parker
April 22, 2008 2:32 PM
 
Hubert... You are right, in that they have not gone on a similar buying spree as the others. Perhaps that's because the CEO actually has spent his entire career in the ad biz. Cheers/George
 
 
by Hubert Boulos
April 25, 2008 7:07 AM
 
Yes and it makes a hell of difference!
 
 
by Michael Laws
May 27, 2008 12:50 PM
 
Since the birth of global ad networks, hasn't this always been the case? As I understand it Omnicom has lost out on a few deals because they were unprepared to pay silly prices for agencies (a sensible tactic), but they have still been in the game. Personally I can't see how companies the size of the ones you mention can possible keep up with delivery advertising solutions in the shifting sands of consumer media consumption without buying in ready made solutions. My own personal media consumption changes on a monthly basis, as more options are made available to me.
 
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MadScam

An ex-pat Brit's "Take-no-Prisoners" look at the current American ad scene in all its horror and desperation!
 

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George Parker

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MadScam

Member since: 03 Jun 2008

Last login: 17 Nov 2009

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