A recent AdAge article highlights how traditional media conglomerates find consultants to become increasingly formidable competitors in the digital space over time. In fact, Publicis was willing to pay nearly a 40% premium for Sapient in order to more effectively compete with these professional services firm. Highlighting a specific instance with Accenture, Publicis CEO Maurice Levy explained how on the one hand the firm is helping Publicis with an SAP implementation while simultaneously pitching for business against Publicis' DigitasLBi. Even Publicis vendors such as the publishers Facebook and Google are cited as competitors offering impressive services to Publicis' other clients.
It is clear that as the digital media landscape gets increasingly complicated that traditional agencies are going to have to be creative in transforming their value propositions, as well as political in terms of how they go to market. AdAge explains that the new Sapient division within Publicis will likely oversee both Razorfish and DigitasLBi, two divisions which formerly reported to Levy. It will be interesting to see if Sapient will actually bring enough unique value to this newly combined entity to justify the $3.7 billion purchase price.
Source: http://adage.com/article/agency-news/publicis-buys-sapient-compete-players/295696/
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