Headed by Russell Jarman Price and Alex Gulland, the department will cover areas such as broadcast content, media promotions and experiential marketing.
The duo, who will be based in the O&M creative department and report to the agency's UK chairman, Gary Leih, will work across the agency's major clients, including Unilever, Kraft and Ford.
Leih said: "Russell and Alex will enable us to exploit new ways of reaching consumers that break the mould."
Jarman Price added: "Our aim is to create innovative ways of generating 'friction' in consumers' minds, so they have time and space to consider a brand's proposition."
The pair are moving to O&M from the W Group, a creative agency they set up together in 2002.
Before that, Jarman Price worked as the creative director at Winchester Entertainment, the company behind films including Shooting Fish and Divorcing Jack. He was also a co-founder of Still Price Court Twivy D'Souza.
Before launching the W Group, Gulland was the European managing director of Showcase International.