• by Tyler Loechner  @mp_tyler, Joe Mandese  @mp_joemandese, July 29, 2013

Lost in all the noise surrounding the Publicis and Omnicom merger is the impact it will have on the programmatic marketplace. Of the two organizations, Omnicom’s Accuen probably has the better technology chops, but Publicis’ VivaKi Audience On Demand has been more visible in leveraging third-party vendors. The big question is what will happen when they begin leveraging their combined audience targeting and buying clout as a consolidated organization.

Given the size, scope and complexity of the two organizations, that’s not likely to happen for at least a year, because the merger of their parent companies isn’t even expected to close until early next year. Then the process of assessing the strengths and weaknesses of each organization will begin in earnest and the jobs of several hundred traders, hundreds of millions of dollars in trades, and a wide range of third-party tech vendor relationships will be at stake.

In the meantime, market leader Xaxis will continue to make inroads with its global expansion -- and market domination -- plans, and independent trading desks and technology providers will likely rush in to pitch any disenfranchised clients who might not have been getting A team service to begin with.

“From what we we have been able to see both of these groups are still focusing programmatic primarily on their top tier client groups. The top five to 10 media spenders in the holding company are getting the real attention,” says a top exec at an independent trading desk adding, “And with this merger if you were client No. 50 before, now you’re client No. 99.”

In an interview with Bloomberg TV, Omnicom CEO John Wren for one seemed to suggest technology will not be a major focus of the merger, at least for some time.

"Don Draper types are not going away,” he said. “Google is sometimes competitive with us and sometimes not. Most of the time it is collaborative. We want to make sure we give our people the tools so that the Don Draper of the future knows whom to write a sport for. Everything has to be the combined."

That said, at least one well regarded observer believes Publicis Omnicom’s consolidated marketplace clout, when coupled with WPP’s, could have a profound effect on the advertising technology marketplace.

"Between Publicis, Omnicom Groupe and WPP, the two entities will have a disproportionate degree of influence in picking winning technologies in ad tech - platforms such as DSPs, bid management systems, book-bill pay systems, etc - will all now have two big customers accounting for the bulk of activity in some verticals, making a shake-out more likely," Pivotal Research Group analyst and former Interpublic insider Brian Wieser wrote in a report sent to investors on Sunday.

An assortment of industry players shared their thoughts on the merger in general. Sam Barnett, founder and CEO of Struq, stated, "In the short-term, bigger could indeed mean better. The buying power of this new entity is staggering." Barnett also stated, "These days, it’s the fast-moving companies that are winning the day, pivoting as the needs of the market change. This is the secret sauce behind WPP’s success. If Publicis Omnicom Group can recreate this culture within the new business, it will truly be a force to reckon with. If not, it will be a slow, sitting target for more nimble firms to take pot shots at."

Gerry Komlofski, COO of Networked Insights, offered this reaction: "As brands become more comfortable using big data to connect with consumers near-real time, the supporting agencies need to develop more agile processes to serve these brands. It is difficult to see how a merged Publicis/Omnicom is going to be more agile."

How Publicis Omnicom’s Stacks Stack Up

Source: RTM Daily, Adexchanger.