Again, looks like IPG is about to fire a bunch of folk. Hope nobody that we know.
Interpublic Plans to Reorganize Its Media-Buying Unit Again - WSJ.com Interpublic Group of Cos. plans to reorganize its struggling media-buying operations for the second time in 17 months. As part of that effort, Interpublic is expected to align its Initiative media-buying unit with its ad and marketing agency Draft FCB, company executives say.Such a move could be the first step in what could be a complete dismantling of IPG Media, an umbrella division created last year to house all of Interpublic's media-buying and media-services units, including Magna Global, Universal McCann as well as Initiative.
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...The reorganization is likely to fuel debate on Madison Avenue about the best way to structure ad-holding companies. In recent years ad giants have separated their media-buying units from their creative arms but marketers are increasingly demanding that these two sides work together more. Under the plan being considered, Initiative will report to Draft FCB Chairman Howard Draft. A spokesman for Interpublic said an announcement relating to the media organization will be coming shortly.IPG Media was created in May of last year, shortly after the company lost General Motors's massive U.S. media buying account, capping a string of big account losses. It was one of Mr. Roth's first major moves after his appointment earlier last year as chairman and CEO. He hired MTV veteran Mark Rosenthal to lead the new unit. But Mr. Rosenthal has been on leave since July fighting cancer. His future role at Interpublic is unclear. Mr. Rosenthal didn't return calls.
While Interpublic's media operations have won some accounts this year, including CBS Corp and Lions Gate Entertainment Corp, the company suffered another big blow earlier this month when General Motors shifted its $750 million European media buying account from Interpublic shops to rival firms owned by Aegis Group PLC. Universal McCann has made headway in wooing more talent although executives at the media concern have spent the better part of the past year rescuing accounts that were close to being put up for review, such as Microsoft.
The reorganization is the second time in just four months that Mr. Draft has gained more power as a result of an internal restructuring. In June Interpublic merged its ad agency Foote Cone & Belding and direct marketing firm Draft Worldwide as a way to bolster its FCB division and in response to pressure from marketers who wanted to get a broader range of services from a single firm.
