Dive Brief:
- The potential takeover of SABMiller by Anheuser-Busch InBev is in full swing, and the thought of the advertising clout behind the combined companies is already giving agencies a hangover.
- If the deal goes through and passes antitrust review worldwide, the new company would instantly become the 13th largest advertiser in the U.S.
- The concern for ad agencies is given the level of influence in dollars spent alone, the new company would press for better media and agency deals.
Dive Insight:
Anheuser-Busch InBev announced it’s seeking to take over SABMiller Plc., and if the deal goes through, and if (possibly a big “if”) it passes a worldwide review from antitrust regulatory agencies, the new company would control 30% of the global beer market, according to Euromonitor. Beyond the brewing industry, ad agencies are also concerned about the two giants joining forces. The two companies spent $971.1 million combined in U.S. advertising last year, and as a merged company, they would instantly become one of the top thirteen largest advertisers in the U.S.
Russel Wohlwerth, a principal at External View Consulting Group, told The Wall Street Journal, “It’s not high-five time for agencies … there is no doubt, they will assert their power. History has shown that they are very willing to push back on suppliers.”
Agencies might be facing challenges from a newly-joint company testing its clout, and media companies, social media platforms and publishers can also expect to be challenged on rates and other contract elements.