Merger to Mix Competing Clients

Would you trade in your Chevy for a Hyundai? Two of Orange County’s biggest ad agencies may have to do just that after they merge within the next few weeks.

Cochrane Chase, Livingston & Co. of Newport Beach and Backer Spielvogel Bates Worldwide’s Huntington Beach office are expected to become one of the largest ad shops in the West, with combined billings of about $200 million, according to Advertising Age, a trade magazine. Agencies typically book 10% to 15% of billings as revenue.

The new agency, Backer Spielvogel Bates. Inc., will be staffed by 135 people from Cochrane Chase and about 45 from Backer Spielvogel. Both shops now are wholly owned by London-based Saatchi & Saatchi Co.

Cochrane Chase, a 20-year-old firm, reportedly bills about $70 million annually. Its major accounts include Pirelli Tires of America, Beckman Instruments, and the Southern California Chevrolet Dealers Assn.--reportedly a $3-million account.

Backer Spielvogel, on the other hand, has virtually one client: Hyundai. Michael Roche, senior vice president and general manager of Backer Spielvogel in Orange County, said the office expects to bill more than $100 million this year. He acknowledged that the Chevrolet and Hyundai accounts constitute “a potential conflict” and added, “It’s one of the things we’re studying.”