Under OMG’s umbrella sits agencies including PHD, OMD and Hearts & Science. Grafton will have oversight of those brands, with each of their chief executives and managing directors reporting to her.
Her elevation comes ahead of a likely disruptive year in agency land.
In the United States in December, OMG announced a planned US$13 billion ($22.7b) acquisition of IPG to create the world’s biggest advertising agency.
It is a seismic shift that will reverberate globally, including in New Zealand, where major OMG brands such as PHD, OMD, Colenso, DDB, Clemenger, TBWA, Hearts & Science and Dynamo will now be housed under the same umbrella as IPG agencies such as FCB and Initiative.
Sources say OMG agencies already lay claim to more than 50% of media spend in New Zealand; the new mega-merger will only reinforce that dominance.
However, with the merger also comes the likelihood of efficiencies.
“Behind the celebratory headlines and executive statements lies a stark reality for employees at Omnicom and IPG,” reported CEO Today in December. “The announcement’s promise of US$750 million in cost synergies has sparked fears of widespread layoffs, particularly among overlapping functions and agencies.”
An advertising industry source had no doubt Grafton was the right person to lead change.
They said Grafton was “one of the most well-regarded, if not the most well-regarded” advertising industry leaders, with great mana and people leadership skills. “No one has a bad word to say about her.”
When asked if Grafton would lead the merger programme in New Zealand, an OMG spokeswoman said on Tuesday: “We can’t comment or talk about the merger at all, sorry.”
In her new role, Grafton will report to OMG Apac chief executive Tony Harradine, effective immediately.
“As one of OMG’s epicentres of growth in Asia Pacific, New Zealand represents a crucial market for our continued progress in the region,” Harradine said in a press release on Tuesday.
“A tenacious leader, Nikki understands what makes consumers tick and is adept at translating clients’ ambitions into tangible results.”
The statement said Grafton would lead the “ongoing expansion and evolution of OMG’s future-ready business model, ensuring OMG’s New Zealand agencies OMD, PHD and Hearts & Science have the talent, tools and technology needed to drive brand growth in a robust marketplace…”
In her new role, Grafton would be supported by OMD New Zealand chief executive Nigel Douglas and Hearts & Science, ANZ chief executive Jane Stanley.
“OMG has a solid bench of innovative thinkers who are passionate about unlocking new possibilities and delivering incredible work for our clients,” Grafton said.
“This is an exciting time for OMG in New Zealand and I look forward to working alongside our talented teams to drive innovation, deepen partnerships and create meaningful impact in the market.”
Meanwhile, PHD New Zealand managing director Abby Parkin will be elevated to chief executive, effective March 1, working closely with Grafton to ensure a smooth transition.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
