MERGER CREATES NZ'S LARGEST MEDIA AGENCY

A merger of three firms announced today will instantly create New Zealand’s largest media agency.
International media services company Omnicom Media Group (Australia and New Zealand) today announced that three New Zealand media agencies – OMD New Zealand, Media Direction OMD and Clemenger BBDO Wellington’s media department – will merge under the OMD New Zealand brand.
Paul Davey CEO of Omnicom Media Group (Australia and New Zealand) said that while there had been merger speculation for some years, the time was now right to make the move.
“The broader Omnicom group is always looking for opportunities that promote best practice and deliver exceptional results to clients. The merger we’re announcing today will be the beginning of an exciting new era for OMD here in New Zealand.”
The companies involved are ultimately managed by the international Omnicom Group so the merger represents a market brand rationalisation and realignment under the OMD banner similar to that undertaken by Omnicom in other regional territories in recent years. OMD New Zealand will operate under the auspices of Omnicom Group’s media arm, Omnicom Media Group and will be 50 per cent owned by Clemenger Communications Ltd and 50 per cent owned by DDB (NZ) Ltd.
“Both clients and staff of the new OMD New Zealand can take advantage of being part of a celebrated worldwide network. OMD is considered the most successful media brand in the world with a proven track record in terms of both awards and our singular client focus. We live by our consumer-centric mantra; providing perceptive insights, superior ideas, and delivering quantifiable results.
“Clients will benefit from OMD’s internationally proven best practice, additional services and innovation, while our newly expanded OMD team will have access to exciting new national and international career paths through the wider group,” says Mr Davey.
Mr Davey takes on the role of Executive Chairman of OMD New Zealand and will spend additional time in New Zealand to successfully market and manage the business consolidation.
Kath Watson has been promoted to Managing Director of the newly merged and expanded OMD New Zealand.
“The expanded OMD operation creates exciting new opportunities for our clients and will have a positive impact on the media industry in general. Due to its limited market size, New Zealand has tended to have a generalist approach to media. However, with increasing fragmentation and digitisation of many media channels, communication specialisation is becoming crucial.
“This merger provides us with the necessary scale and resource to develop greater specialisation to expand our unique suite of client-focused services. Our intention is to create an offering that clearly positions us as the market leader, not just in terms of size, but capability as well,” Kath says.
Former Media Direction OMD Managing Director, Peter Myles is taking up a newly created role as Executive Director of Omnicom Media Group (OMG).
Peter Myles says he is thrilled with his new appointment.
“While the exact parameters of my new position have yet to be confirmed, I am excited about the prospect of getting involved in a variety of new projects within the wider Omnicom Media Group, outside of OMD,” Peter says.
Other senior management appointments resulting from the merger include the naming of three OMD Managing Partners: Andrew Reinholds and Rosanne Robinson in Auckland, and Nigel Keats in Wellington. Ching Yeo’s recent promotion to Finance Director of OMD New Zealand recognises the increased role he’ll have in the new company. Chris Riley is Director OMD Digital and Gregg Wiggill is Director OMD Insights. Matt Bale has been appointed General Manager of the OMD New Zealand Wellington office.
OMD New Zealand’s Auckland head office will be located at 33 College Hill, Ponsonby and will continue to provide media services to all existing clients. Clemenger BBDO Wellington’s media department will be rebranded OMD New and will be located at separate offices within the Clemenger building at 8 Kent Terrace in Wellington.