B COM3 is to merge its global media operations under the Starcom
banner, leaving MediaVest with only two independently branded operations
MediaVest and Starcom will continue to function as separate agencies in
the UK and the US but the Starcom name will be adopted by the merged
operations in all other markets.
A new holding company, Starcom MediaVest Group, has been set up to
manage both brands and Jack Klues, the chief executive of Starcom
Worldwide, will head the group.
The new network will begin to consolidate its agencies’ worldwide
resources immediately with the merging of the organisation scheduled to
be finalised by 2001.
SMG’s existing consortium agreements in markets such as Belgium and
Germany will continue but are expected to be affected in the long
’We will live up to our contractual agreements but I don’t know how
things can be best resolved after that,’ Klues said.
Klues will run SMG from Chicago alongside the network’s chief operating
officer, Bob Brennan, and Kevin Malloy, the executive vice-president of
international operations and chief executive of MediaVest US.
Mark Cranmer, the chief executive of Starcom Motive UK and head of
Starcom in Europe, takes over as SMG’s chief executive for Europe, the
Middle East and Africa, leaving the future of Adrian Birchall, who
filled the role for MediaVest, uncertain.
Although the independent UK and US agencies will not pool their media
buying resources, there will be greater collaboration on issues such as
research and systems.
’We have to ensure we don’t jeopardise client relations and we must put
safeguards in place to ensure that the information that should be
secured is,’ Klues said. ’But there is more opportunity for
confederation and the collaboration of resources in the UK than in the