NEWS: DMB&B pulls off partnership deal with Ayer network

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.

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

last year.



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