Monday, July 29, 2013

Publicis and Omnicom Merger and chasing Google

This morning, an article on the merger of Publicis and Omnicom mentioned that the new, bigger, agency was chasing Google.

That's a quaint notion...

It's not going to work though, and here's why; they can create a finite number of adverts per year, but Google has a (so far) limitless inventory of places to distribute them - from their agency, and every other agency.

The problem can be viewed like this: when papers and television only had space for a certain number of adverts to reach the public, there was a supply & demand equation that kept prices high.

When Google came along to tap into the ever increasing eyeballs on the web, the demand for advertising space now had no real supply issue - therefore people would pay less for adverts.  The CPM/RPM values went through the floor.

The knock on effect of this is people were no longer willing to pay the higher CPM that the traditional papers and television channels commanded previously. Throw targeted ads that only reach people likely to buy your service (papers and TV can't tell if you're looking for a car or a blender) and the final nail was in that coffin.

So how is this new uber-agency to beat Google when its only able to fulfil traditional agency roles?

It can't... at least it can't by going the route that it is...