International media giant Carat has solidified its position in Canada through an alliance with David Cairns and Company Media Management, a five-year-old Toronto firm.
David Cairns, president and founder, remains as president and retains 51% ownership of the new company.
The arrangement is similar to a deal cut with Stratégem (now Carat Stratégem) of Montreal last June that left its president Jacques Dorion as majority stakeholder.
Combined billings for Carat Canada are $1.2 million.
Cairns says the proprietary research and technology now at his disposal will help his company better deal with issues such as media fragmentation, consumer segmentation, and the changing ways in which consumers use media.
‘I think what Carat is all about, and what I was very attracted to, was that it’s a centre of research… Its core is knowledge and strategic insight.’
Carat’s Canadian expansion comes hot on the heels of some major wins in the u.s., including Pfizer (us$300 million) and Midas (us$70 million), that have brought the company’s North American billings to a total of us$1.6 billion.
While Carat is the largest media buyer in Europe, controlling some 12% of the market, it is not yet one of the major players in North America and Asia.
Established in 1987 in France, Carat reports worldwide annual billings of us$9 billion and now has 55 offices in 31 countries in Europe, North America and Asia. It is owned by British-based holding company Aegis plc.
Carat lists 4,000 clients around the world with a roster of 400 in North America. The company is hoping that many will decide to align themselves with Carat Canada as well.
David Verklin, New York-based ceo for Carat North America, says given the strength of its two Canadian operating units, the company will work quickly to introduce its European and u.s. clients to Cairns and Stratégem.
There have already been some new opportunities for the Canadian shops because of this Carat alliance.
Both Cairns and Stratégem have added Van Melle and Mentos confectionery brands to their rosters and it is expected that the Canadian Real Estate Association will sign with Carat Cairns.
Carat Cairns’ other clients include Andrés Wines, Fidelity Investments, Jamieson Laboratories, MasterCard Canada, MetroNet Communications, Mercedes-Benz, and mgm-ua.