MEDIA PERSPECTIVE: Zenith deserves a boost now Publicis has won Saatchis

Pity poor Zenith. What should have been the jewel in the crown of

two mighty agency networks became the unloved progeny of two confused

and self-obsessed advertising minnows more interested in their own

bitter wranglings than in nurturing their media offspring.

When Saatchi & Saatchi split from Cordiant in 1997, Zenith found itself

unhappily divided 50:50 between the two. Now that Saatchis has succumbed

to the charms of Mr Levy’s Publicis, Zenith’s parentage becomes even

more complex. And though there are no triggers in place to amend

Zenith’s ownership if either parent’s status alters, you can bet that

change is top of Zenith’s wishlist after years of neglect.

Zenith - still the biggest media agency in what is undoubtedly one of

the world’s best media markets, the UK - is now floundering at the arse

end of the global top ten league tables. This despite a head start and

the strength of its worldwide management (headed by Brits - another

obvious plus when you consider that some of the string-pullers behind

other media networks have no media business credentials).

The truth is that Saatchis and Cordiant have failed Zenith, and it

failed miserably. Though the two agencies combined now account for

around a third of Zenith’s global revenues, they take between them

around 75 per cent of Zenith’s profits (two-thirds of which falls into

Saatchis’ coffers) in dividends.

And the recent fortunes of Saatchis and Cordiant have been such that

neither have been supplying Zenith with a steady stream of new

business.

In fact, word in the US is that relations between Zenith and Cordiant

have hit a particularly tricky patch over the assignment of some of

Cordiant’s media business. Mind you, while Saatchis has been fattening

itself up for a sale, Cordiant has been developing itself as a rounded

marketing services company, which has at least spurred its enthusiasm

for a strong media partner.

Zenith is now a dollars 7.4 billion-billing business, but one

desperately in need of a merger with another media network if it is to

do justice to its UK heritage on the global media stage (even in Europe

Zenith’s network is patchy; the agency ranks only at number ten in

France, for example).

Publicis’ Optimedia would not do the trick, even if Cordiant was

agreeable to some sort of joint media holding company.

What Zenith needs is a new owner (just the one would be nice). An owner

that recognises that media is an area ripe for investment. An owner that

understands the business and culture of media, the urgencies of scale

and the potential to put media at the communications axis. Mind you,

that little list seems to rule out a fair portion of the global agency

groups.

Perhaps it’s time to resurrect those Aegis rumours.

claire.beale@haynet.com.

This article was first published on Campaign