Today, Ketchum and Pleon announced the two agencies are merging – creating quite a force to be reckoned with. As AdAge said, this is one of (if not the) largest merger in the PR industry.
The merger transforms both agencies into an incredible global network that rivals the biggest players in the world. Per AdAge, Ketchum had a strong presence in Spain and the U.K. With this merger, the agency has a significant global foothold. Ketchum will also now be a major player in Germany, one of the world’s largest economies and Pleon’s strongest base of operations. For Pleon, an agency known for culture-based campaigns, they now have significant U.S. presence.
Lou Capozzi, president of the International Communications Consultancy Organization and former CEO of Publicis Groupe’s MS&L, said he expects further consolidations like this to occur in the PR industry as the global networks form global partnerships with their clients.
“Agencies need to provide global coverage for their clients,” Mr. Capozzi said. “That places a lot of pressure on the agencies to grow and expand their networks, so as these mega accounts grow in importance in major firms, I would expect to see more of this kind of consolidation. It’s a smart move for Ketchum.”
It will be interesting to see how other major players will respond to this consolidation as Ketchum now has a nearly unrivaled global outreach.
Ketchum will largely continue to be known by that name – but will be called Ketchum Pleon throughout continental Europe.