DMB&B’s plans to acquire a second agency network were formalised this
week, as an agreement was reached with N. W. Ayer and Partners, the US’s
oldest ad agency.
Ayer holds a substantial chunk of Procter and Gamble business, and the
strengthening of DMB&B’s alliance with the world’s largest advertiser
was a major spur to the deal.
Ayer’s other major clients include Avon, Gillette and General Motors,
all of which become clients of the group’s holding company, DMB&B Inc,
as a result of the deal.
Although there are no immediate repercussions in the UK - because here,
Ayer is a separate company and therefore is unaffected by the deal -
DMB&B has strengthened its position in the international market.
John Farrell, DMB&B’s UK group chairman, commented: ‘Although there are
no direct implications for us, the development of relationships with
major new clients across the network can only be a plus.’
The only complication is a conflict of business between the rival
telecoms companies, Southwestern Bell - which is a DMB&B client - and
AT&T, an Ayer client.
DMB&B saw off competition from several rival bidders for Adcom
Investors, Ayer’s holding company.
Ayer’s billings topped dollars 800 million in 1995, 1 per cent down on
the previous year. DMB&B’s billings were more than dollars 5 billion