Group m consolidating print buying operations
"The decision to consolidate our final assembly plants was made after very careful consideration of our manufacturing footprint and the appropriate capacity given the current business environment," Matt Levatich, company president and CEO, said in the release."Our Kansas City assembly operations will leave a legacy of safety, quality, collaboration and manufacturing leadership." More: Harley-Davidson laying off another 118 in York County The company has eliminated more than half its workforce in York County since threatening to move in 2009.The new Platform Services organization, which has named former Mediacom CEO Phil Cowdell as President, is an attempt to better support marketers as they struggle to effectively target digital ads.With the growth in granular targeting on platforms such as Facebook, brands are able to hone in on a narrow group of highly qualified consumers and deliver relevant content.Media planning agencies such as Group M have lost some relevance for brands as automated buying has grown.
Group M’s reorganization reflects how the umbrella organization is putting data and insights at the core of media planning and buying across its agencies, which include Mindshare, MEC, Media Com, Essence and M/Six.About 800 employees currently work at the Kansas City plant, and some salaried employees will be offered positions in York, Lauer said.After 2020, the company expects to save million to million yearly from the change.He said: "Consolidation should push costs down as a result of scale but it doesn't.It increases marketing spend to support monopoly practices and power." Ted Woodhouse, director of IT strategy at Leeds Teaching Hospitals NHS Trust, said: "My experience is that anything that reduces competition is, by and large, bad for the customer. Which is, of course, from the suppliers' point of view, one reason why M&As are happening." But not everyone agreed.