The Carat Group has bowed to market conditions and folded its
smallest UK brand, YMG Carat, into TMD Carat. It is also creating a new
research and consultancy company, Carat Insight.
Ray Kelly, the chairman and chief executive of Carat UK, said that the
decision was a recognition of the growing pressure on medium-sized
agencies such as YMG. ’It’s increasingly difficult for agencies of this
size to operate effectively,’ Kelly explained. ’It’s a matter of
Kelly said the decision came despite a claimed record year for YMG in
1996. However, wins such as the pounds 10 million Le Shuttle were
tempered by the loss of the pounds 6 million Sterling Health and pounds
8 million Granada Rentals accounts, fuelling speculation that the agency
was facing closure (Campaign, 29 March 1996).
YMG’s consultancy business will be rolled into Carat Research, which is
being relaunched as Carat Insight, combining pure research with
TMD now picks up YMG’s claimed pounds 60 million billings to bring its
total claimed billings to more than pounds 470 million. Last year, TMD
billed pounds 386 million and YMG pounds 38 million.
YMG’s Evening Standard media account, which spent pounds 2 million last
year according to Register-MEAL, is the only immediate casualty due to a
clash with TMD’s News International business.
Mark Jamison, YMG’s managing director, will become commercial director
of TMD, while the YMG directors, Tim Kirkman, Dave King and Philip
Reddaway, also take top posts.