More Digitas Thoughts

If I can pull myself away from my copious weeping, I'd like to add a few thoughts on the Digitas/Publicis merger.  One interesting discovery I've made since the announcement is just how little blogging and online commentary there is from the DTAS set - I think it may be their busy lifestyles, but even ex-Digizens seem terribly quiet on the topic.

Oh well.  I'm still decidedly mixed on the decision to merge (unfortunately, I'm no longer a stockholder, so I can't actually vote the fact).  I think there's a lot of talk of synergies and a definite commitment to an independent Digitas at the start of this; but ultimately, Publicis is telling Wall Street that this is a strategic acquisition to gain interactive marketing reach and skill.  That has to change the way Digitas works, and if only for certain efficiencies, surely some back of house functions - financial and HR, which was my world, will be affected - but that's speculative on my part.

One interesting tidbit that came out this week is that Digitas will have to pay a large fee should the merger not be approved, and that a large "retention fee" is going to CEO David Kenny ($1.94 million).  I'm not sure that's a huge deal - David's pay has not been one of those obscene CEO pay stories, and I don't think one can seriously question some benefit for him from the merger.  I know he cares deeply about the company and its people. One example of that is in today's Wall Street Journal, where Advertising columnist Emily Steel, calls Digitas "one to watch" in 2007.  Why?

The Publicis deal gives Digitas the global clout to potentially shape the industry's future, say its executives. But the challenge will be to retain its competitive edge in the confines of a traditional advertising company. All this makes Digitas and its chief executive, David Kenny, who will oversee Publicis's overall digital and interactive strategy, worth watching in 2007.

"It is unfortunate that the road has been bumpy," Mr. Kenny says. "The important thing now, as we experience tremendous growth, is to make sure that we pace ourselves so that we don't overbuild and have to pull back. That does hurt."

The article notes a number of challenges that have faced Digitas, including loss of some big clients - Ameriprise, FedEx, and Best Buy, and the question of landing big new ones (which have lagged of late).  But the part that interests me most is at the end of the piece, something noted largely in passing (emphasis mine):

Among the challenges for the coming year: hiring. The industry is still strapped for talent on both the creative and technology sides, despite its growth, and much will depend on Digitas's ability to recruit qualified applicants. The three Digitas agencies have about 150 positions open, ranging from entry-level associates to directors with at least five years of experience.

"It is great to have this strategy, but if I want to stand up and do this on a global basis, and if there is not enough talent, it is not going to work," he says. Mr. Kenny says he is making investments in the education, development and retention of Digitas employees.

To which I would only add, were I still a shareholder - or, were I Emily Steel - I would ask just what's happening on the education, development and retention front, as well as recruitment of new employees.  Is all I'm saying.

Comments

[jin baltimore]

synergies. ns
who is Emily Steel?

[Jennifer]

Emily is the WSJ's advertising columnist and she is truly lovely-by the way.

[jin baltimore]

got it; thanks.