“It is common for companies to seek media efficiencies via agency consolidations in the wake of major mergers,” noted Ad Age. And so it comes as absolutely no surprise that following ABI purchase of SABMiller, ABI “putting in play planning and buying duties for the world’s largest brewer.” Incumbent in US is MediaCom since late 2014. Globally, ABI currently using 8 agencies “spanning all major holding companies in more than 50 countries” and looks to get down to “potentially as few as one or two agencies.” There will be big winner(s) and losers once the dust settles.
ABI was 20th largest US advertiser, “spending $1.68 billion in 2015,” estimates Ad Age. Globally, it added SABMiller spending too. So that’s gotta be some massive account, desirable even given ABI’s sometimes radical revamps. Recall, in 2014, AB decimated long-running Busch Media Group to go to MediaCom. At time, AB said it would be able to act “faster” and “spend smarter.” It is likely to get more efficiencies yet again, but will those efficiencies lead to better sales results?