Advertising Agency Deutsch and Lowe are merging
October 15, 2009
George Parker has a leak that advertising agencies Deutsch and Lowe are merging. This has been suspected for some time, however it appears that it’s final now.
The recession has forced many mergers that otherwise would have never happen in a normal economy. Both Deutsch and Lowe have been facing extreme pressure (like most other ad agencies) regarding reduced client spends and account reviews of their current clients.
The issue at hand is if both agencies combined can still survive? The obvious cost savings with firing of duplicate staff will eventually be realized, at the cost of massive levels of pink slips, but that being stated the economy continues to crumble at an impressive rate. Will the merger force more client reviews as it’s many individuals gut feeling that this might not be the “best mix” of resources. Both firms are still extremely lacking in many of the more progressive online advertising methods (social media, seo). So is it a merger of Kmart and Sears we are looking at? Taking the worst of both and putting them together?
Regardless, this is the biggest merger of the year in the advertising agency space, well if you subtract the collapse of Enfatico folding into Y&R.
Story is developing…
Why do you look so happy Donny Deutsch? Is it because you get to keep your name when Lowe goes the way of Enfatico?
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