PHD Australia CEO Mark Coad told Mumbrella in a statement that he didn’t see a significant impact on either media company’s pricing, because “the assets within this group are still going to operate within their respective competitive arenas”.
Coad continued: “If anything advertisers would expect some sort of efficiency in bundling across the group,” he said. “As for whether this is a good or bad move – let’s not forget who these guys are up against. They are competing with significant global digital players and one way to compete against that is definitely scale. In that sense, a stronger competition aids pricing for advertisers.”
Omnicom Media Group’s chief investment officer Kristiaan Kroon also commented, describing the merger as “logical for two businesses that are both performing well and have a good working relationship across their senior management teams on joint ventures, such as Stan.
“With three market changing acquisitions and mergers in under a month, it will be fascinating to see how other local media owners react to the reshaping of the landscape and in time, their ability to take on the large global media businesses.”