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Mergers and acquisitions among promotion agencies started rolling again near the end of 2001 - a year that had largely been marked by their absence.
"We've turned the heat on under the acquisition burner," says Thomas Harrison, chairman of New York City-based Omnicom Group's Diversified Agency Services, home to 100-plus promotion, direct, and p.r shops assembled in a loose network that is encouraged - but not required - to work together.
Harrison made the remark after Omnicom announced that it had purchased The Promotion Network, a Dallas-based independent shop with an impressive client list boasting Sharp, Gatorade, Nabisco, and 7-Eleven.
Founded by former McDonald's executive Roger Winter in 1983, TPN has about 110 employees, offices in New York City and Chicago, and revenues in the $15 million range. Chief executive Winter and the agency's other two principals, president Sharon Love in New York and executive vp Rich Feitler in Chicago, will remain at the helm under "long-term" contracts, Winter says.
Omnicom pursued the shop despite Winter's initial rebuff because "it's not just a sales promotion agency. It's a very strategic and unique promotion company," says Harrison. "When someone says, "We're not for sale," that usually means they're onto something good."
"If it had been anyone but Omnicom, we wouldn't have done it," says Winter, who in the past has professed a decided preference for independence. "But we liked Tom and what he had to say."
Harrison's pleasing words specifically centered on the "laissez faire" strategy at DAS, where agencies are primarily left to operate on their own. Cooperation among network agencies is encouraged (forums are held regularly to facilitate collaboration) but not required. "We don't dictate anything, and I think...