Agency news you need to know this week

Hello, and welcome back to Agency Brief. This week, we have the scoop on Royal Caribbean’s creative review and Martin Sorrell’s perspective on Omnicom-IPG. Want to be included in a future edition? Reach out ewan.larkin@adage.com and brian.bonilla@adage.com for consideration. A quick note: This column is taking a holiday break next week and will return in January. Sign up for Ad Age news alerts and visit adage.com for all of the latest news. Happy holidays! Royal Caribbean finds a new creative shop Partners + Napier, an indie agency based in New York, has set sail with Royal Caribbean International’s creative business following a competitive review, Ad Age has learned. Partners + Napier declined to comment. Royal Caribbean, which is owned by Royal Caribbean Group, did not return a request for comment by press time. Quality Meats, Wieden+Kennedy and 72andSunny are believed to have pitched for the business. Quality Meats, W+K and 72andSunny declined to comment. Interpublic Group of Cos.’ The Martin Agency, the incumbent, did not defend the account, which it had handled for two years. Royal Caribbean had U.S. measured media spending of $81 million for the first two quarters of 2024, compared to $143 million spent in all of 2023, according to figures from MediaRadar. Agency Review Tracker Stay up to date with the latest account reviews Click here Sorrell has his say S4 Capital Founder and Executive Chairman Martin Sorrell weighed in on the Omnicom-Interpublic Group of Cos. deal in a memo to staff obtained by Ad Age. Sorrell said he believes that Omnicom has paid a “significant premium,” as recent IPG client losses have not bled fully into the holding company’s results to date. “Giving IPG shareowners 40% of the combined company is over the top,” the former WPP CEO wrote. “On first [nine] month 2024 numbers, a true ‘merger of equals’ would have given IPG shareowners more like 35% on an EBITA basis.” Sorrell highlighted the $750 million that the Omnicom and IPG combination is expected to generate in cost synergies—which he described as the “real logic” for the deal, in addition to increased scale. He said he anticipates “at least 7,500-10,000” people to be laid off, and perhaps even more. “All this is going to cause considerable, understandable angst amongst both clients and people—very significant opportunities for us,” Sorrell wrote in the memo. “So we should be dusting down the client and people opportunities very aggressively.” Sorrell addressed possible advantages for Omnicom and IPG, too—including the increased scale for IPG Mediabrands and the combined healthcare businesses, which would represent 19% of the new company’s revenue. “Together they will all be even stronger,” he said. “In addition, and most importantly, with U.S. animal spirits on fire in anticipation of a low tax, low [regulation], second Trump regime, 57% of the combined company’s revenues will be in the United States,” Sorrell added. “This will be a big plus.” Tracking the latest Omnicom-IPG merger news and analysis Checking in on Havas Following a spinoff from Vivendi, Havas is now officially a standalone, publicly traded company. It debuted on the Euronext Amsterdam exchange on Monday. The French holding company’s stock opened Monday at 1.80 euros. Shares fell in the days since then, trading at 1.46 euros as of Thursday. In October, Havas offered comparatively weak guidance for 2024, forecasting organic net revenue would be flat to down 1%. The agency network’s outlook for 2025 was stronger, expecting net revenue organic growth in excess of 2%. Just briefly The Martin Agency has promoted Alberto Orte to executive creative director. In the new role, he will oversee accounts including UPS, Unilever and J.P. Morgan wealth management. Orte was formerly a group creative director at the IPG agency. Stagwell has gone shopping again, entering into an agreement to purchase media monitoring and analytics company Unicepta. The deal marks the holding company’s ninth acquisition in 2024. Unicepta will be folded within Stagwell’s PRophet comms tech unit. Tara McKenty joined AKQA Australia as executive creative director, a new role at the WPP agency. She was formerly chief innovation officer and co-executive creative director at BMF. Horizon Media has been appointed media agency of record for Tropical Smoothie Cafe following a competitive review. The agency announced that it “will manage an annual media budget of approximately $50 million, overseeing communication planning, media investment and measurement” for the chain, which has 1,500 locations in 44 states. The incumbent is believed to have been iProspect.

Agency news you need to know this week

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