The office will operate autonomously from OMD Latvia and will have its own staff and systems. However, services such as research, buying, digital and sponsorship will be based within the Omnicom Media Group in Latvia.
The business will be run by Raivis Balodis (pictured), the former managing director of OMD Latvia.
Henrijs Bukavs, the chief executive of OMG, said: "Through OMD, Omnicom has proven its ability to provide clients with leading media services in Latvia. With the launch of PHD, we will be able to provide an alternative media network with pioneering media solutions."