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Abney Associates Notify Clients On Advertising Agency StocksBy Expert Author: Rick Abney
“In the world of advertising bigger is better and the biggest is king. The markets have reacted predictably to what is now the world’s largest advertising conglomerate formed by the merger of two titans, Omnicom Group Inc. and Publicis Groupe SA. this $23 Billion super merger beat out Dentsu Inc’s buyout of Aegis Group Plc. for $4.9 Billion to become the largest in the advertising world,” stated James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
The year to date performance for what had been the second and third largest advertising groups has already been spectacular, with return on investment over the last year of 47.84% for Publicis Groupe SA and 32.47% for Omnicom Group Inc. With the new Netherlands, based company controlling most of the world’s large advertising agencies and boasting an impressive array of Blue chip accounts confidence is high.
With global advertising spending tipped to increase by 5.1% next year and as high as 5.8% the following year, they picked the perfect time to merge. They now have market dominance in an ever and faster increasing sector, premium accounts worldwide and are expected to save around $500 Million a year in expenditure through this merger.
Both Omnicom Group Plc. and Publicis Group SA shares traded up buoyed by the merger announcement with rises of 1.26% to $65.11 and 1.51% to 59.35 EUR respectively. The only negative adjustment was a slight down turn of the previous largest advertising group WPP Plc. losing 0.42% on the news. Across the board, advertising stocks continued to perform well.
“Advertising and investment always go well together for a very good reason, when economies are doing well, advertising expenditure increases to capture new ground, when economies are down, ad expenditure increases to maintain market share. This makes the sector a very desirable platform with near perfect conditions for placing sound positions, given the rapid growth in ad expenditure and the solid performance of this sector, advertising should definitely be considered in any investor’s portfolio,” said James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.
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