What's Happening?
Havas and Horizon Media have launched Horizon Global, a joint venture aimed at enhancing their competitiveness in the consolidating global media market. This move comes as mid-tier networks face increasing pressure to grow amidst large-scale media reviews by major brands such as Bayer, Mars, and Coca-Cola. The joint venture, operating out of New York and Paris, manages $20 billion in billings and has a presence in over 100 markets. It combines Horizon's Blu platform with Havas' Converged.AI into a unified system called BluConverged, allowing for a more streamlined and data-driven approach. The venture is led by Horizon president Bob Lord as interim CEO and Havas' Renata Spackova as COO, with profits split equally between the two agencies.
Why It's Important?
The formation of Horizon Global signifies a strategic response to the ongoing consolidation in the media industry, where larger players are increasingly dominating the market. By joining forces, Havas and Horizon aim to leverage their combined strengths to compete for global media briefs that require significant scale and cross-market coordination. This move could potentially open doors to new business opportunities, particularly with U.S.-centric clients that have a global reach. The joint venture also highlights the importance of data and technology in modern media operations, as it seeks to operate more efficiently and innovatively than its competitors.
What's Next?
Horizon Global is expected to focus on securing clients in industries such as airlines and footwear, where it sees immediate opportunities. The joint venture is also positioned to evolve its offerings, potentially through acquisitions, to further enhance its competitiveness. As the media landscape continues to consolidate, Horizon Global's success will depend on its ability to adapt and scale its operations to meet the demands of global clients. The coming months are anticipated to be busy, with new business opportunities likely to arise as the market continues to shift.
Beyond the Headlines
The creation of Horizon Global reflects broader trends in the media industry, where consolidation is reshaping the competitive landscape. This joint venture could serve as a model for other mid-sized networks seeking to expand their global footprint. Additionally, the emphasis on an 'open ecosystem' for technology integration suggests a shift towards more collaborative and flexible approaches in media operations, which could influence industry standards and practices.
