By buying T-Mobile, AT&T is creating a new advertising giant, which will send ripples throughout the ad industry.
Here's why and what to expect:
AT&T is an advertising behemoth:
AT&T was the third largest advertiser in the US last year, spending $2.1 billion, up 12 percent from 2009 according to Kantar Media. Together AT&T and T-Mobile spent $2.7 billion last year, making the combined company the nation's second largest advertiser, behind only Procter & Gamble, which spent $3.1 billion on measured ad spending.
AT&T and T-Mobile will go through different waves of spending:
This merger should generate economies of scale in advertising, but not quite yet. Kantar Media's Jon Swallen says until the merger is approved they will have to maintain their separate spending. In the period around the deal actually closing Swallen projects they'll have to spend more to establish the company and address rivals. So expect a sine-curve of spending before months later when they find cost savings.