A blog for the New Zealand creative advertising industry, now at www.campaignbrief.com/nz. Email news to: michael@campaignbrief.com

Tuesday, December 05, 2006

OGILVY ACQUIRES METROMEDIA

Ogilvy is set to expand yet again with the acquisition of Auckland-based advertising and design agency, Metromedia, capping a year of phenomenal growth.
Ogilvy will acquire 90% of Metromedia while existing stakeholders and Metromedia founders, Paul Manning and Ant Hassett will each retain a 5% share.
From 1 January 2007, Metromedia will be renamed Ogilvy Metro, headed by Manning as Managing Director and Hassett as General Manager.
Operating as a standalone business, Ogilvy Metro will continue to run from its Ponsonby premises, sharing the wider knowledge and resources of Ogilvy where appropriate. This includes Ogilvy’s resource units, production technologies, worldwide knowledge base and propriety tools.
Ogilvy Metro will retain existing clients Fuji Xerox, BMW (retail), House of Travel (design) and Auckland City Council, as well as taking on a range of new business from Ogilvy’s vast client base.
“We are thrilled with the addition of this successful young agency to our business,” says Ogilvy Managing Director, Greg Partington.
“This acquisition is about investing in dynamic, young talent. In just seven years, Metromedia has become New Zealand’s largest independent advertising agency, carrying an extensive range of below the line skills.
“It is an agency of the future with great potential for growth and we want to be part of that.”
Partington also believes Ogilvy Metro will enable them to house competitive conflicts should they arise as a result of an increasing level of convergence among clients in the New Zealand market.
One of Metromedia’s key assets lie with the talents of Paul Manning, who has lead the business since its birth in 1999, and was winner of ‘Young Entrepreneur’ at the Ernst & Young Entrepreneur of the Year Awards in 2005.
Manning believes this next step is, fundamentally, the most important move his agency has ever made.
"Becoming an Ogilvy agency is an exciting move that I believe will deliver immense value to our clients,” says Manning.
“Ogilvy Metro will retain the agility and client-centric culture that has made Metromedia so successful, while having the backing of enviable, world-class resources.
"Ogilvy Metro will be a truly unique agency in the New Zealand market. We will deliver turnaround and efficiency never seen before in this country.
“Ogilvy Metro clients will continue to receive the excellent level of service they have enjoyed and they will now have access to wider expertise and resources.”

6 Comments:

Anonymous Anonymous said...

What is next?

Ogilvy Saatchi?

Dun, Dun Duuuuuun.

6:26 PM NZDT

 
Anonymous Anonymous said...

The phrase 'negative gearing' springs to mind ... how long before the disrepancy between expenditure and cash flow, exacerbated by various culture clashes, bites the STW Group in the ass with a vengeance?

7:49 PM NZDT

 
Anonymous Anonymous said...

6:26 PM - If this was 1987, it'd be the other way round.

10:36 PM NZDT

 
Anonymous Anonymous said...

I think "an increasing level of convergence" is caused by the decreasing number of agencies! With all the mergers and absorptions there's less agencies for clients to choose from that don't have a competing brand already.

Bryce
Sugar

3:24 PM NZDT

 
Anonymous Leanmeanfighingmachine said...

That is why all the big agencies are burning up in the Uk and all over the world. Small fleixble ones are steeling their clients because they have less overheads. Meaning there clients get better serviced with more transparent cost structure. Also the staff get more of the returns and the client gets better people on their business. In a nut shell, staff get paided well to deliver, instead of profits going to shareholders of listed outfits like WWP. I mean who would own shares in that lot, been trading sideways for years.

Thats why they also are all merging. Reduce costs and the idea of working on similar clients is a thing of the past, they don't care anymore.

This is what will screw them in the long run as they shrink. But they will always be around as big clients will always want them, it's just that there will be a better balance of small and large shops. You will see this alot in small developed markets and growth markets like china/ asia and africa.

It's going to be even more fun with interactive kicking in as well. Well here anyway...oh but it has everywhere else. We late on that one - Telecom Cheers for that.

11:00 AM NZDT

 
Anonymous Anonymous said...

We have Assimilatrd Metro Media into the Hive (Ogilvy) you will become part of us... resistance is futile

12:45 AM NZDT

 

Post a Comment

Links to this post:

Create a Link

<< Home