Following the cutting of 300 jobs in their Irish offices in Dublin and another 350 jobs in the UK, the newly merged Paddy Power Betfair is continuing with its cost-cutting measures by pitting two marketing companies against each other.
Paddy Power Betfair is considering their £40 (€51 million) million annual media costs for their UK and Ireland media campaigns and is considering merging the spending into a single agency.
The Irish bookmaker giant, Paddy Power, has had M2M handling their media since 2009, while Betfair’s European business has had their marketing handled by MediaCom since last year. With the merger of the two companies, the media agencies have already been vying for the business. A major pitch was already underway by the time the two companies completed their merger in February.
Paddy Power Betfair announced months ago that the merged company would aim to save £50 million annually and besides for the job cuts, they announced at the time that cost-cutting would include “synergies in a number of areas, including marketing.”
Jonathan Devitt, who previous worked for Betfair and was then appointed the chief marketing officer at the merged Paddy Power Betfair, appointed MediaCom as the media agency for Betfair. Gavin Thompson, from Paddy Power, has left the company following the merger.
A number of other high-profile people have left the merged company, including Paddy Power’s former chief executive, Andy McCue who had been appointed the chief operating officer of the newly merged firm.
Paddy Power Betfair has plans to expand into the US and Australia, but it is unclear at this stage if the companies’ pitches will also compete for these new business ventures.
It is understood that Paddy Power Betfair has no more immediate plans as part of their cost-cutting program.