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Social Chain’s Lumaland merger heralded as 'an advertising gamechanger'

SocialChain founder Steve Bartlett

Manchester-based Social Chain has completed a merger with Lumaland in Germany to create a unified advertising entity valued at €186m in a move which is already being heralded as a possible gamechanger.

In addition to offering the requisite scale needed to penetrate a cut-throat market the deal is being heralded as a fundamental break with advertising tradition by combining an advertising agency with a brand that has products to sell.

Commenting on the tie-up retail strategist and marketeer Alex Vaughan said: “In merging with a brand that has products to sell; we would expect most advertising agencies to lose their nonbiased status and work with fewer external partners. In this case, Social Chain can be expected to continue to grow its external brand revenue.

“The reason for this is because brands working with Social Chain do so because they can help unlock the holy trinity: millennials (and now centennials) who almost shop like aliens, growth of digital channels that effectively perform as ‘earned’ media and most importantly because social media is increasingly becoming a sales driver.”

This idea is pushed further with speculation that the merger could point the way to a new breed of integrated agency with fewer qualms about sullying the intellectual purity of the creative process with commercial interests, with Social Chain’s business data being likened to crude oil and inaccessible tech giants playing the part of refineries in Vaughan’s fossil fuel analogy.

Last year Social Chain added Glow Artists to its repertoire.

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