Small media firms reply to Ogilvy buyout with mergers

ZK group offers both public relations and advertising services and has operations in 17 African countries including, Burkina Faso, Congo –Brazaille, Congo DRC, Dubai, Gabon , Malawi , Niger , Nigeria, Madagascar, Rwanda, Sierra Leone , South Africa, Tanzania, Tchad , Uganda and Zambia.

Kenya’s biggest media buying and creative firm Scangroup opened swap negotiations that will see it gain a significant stake in Ogilvy East Africa.

Smaller players reckon that the deal, which effectively merges two of the biggest players in Kenya’s advertising scene, gives the resulting entity the muscle to dominate the market.

Last year, Scangroup accounted for 61 per cent of all advertising booked through agencies while Ogilvy held on to 10 per cent stake.

Opponents of the deal including Saracen OMD, Nuturn Bates and ZK Advertising, said their plan is to petition regulatory authorities to scrutinize the deal for its possible impact on competition in the media services market.