Interpublic Combines Draft and FCB Units
The Interpublic Group will combine its Draft and FCB units to create Draft FCB Group, the company said yesterday. Howard Draft has been named chairman/ CEO of the unit.
Steve Blamer, formerly CEO of FCB, will leave Interpublic after a transitional period. FCB’s Jonathan Harries has been named worldwide chief creative officer.
The agency is forming integration teams to develop plans for integrating geographic market alignment, business development, creative services, research, strategic planning, media, human resources and communications, as well as finance and operations, according to Interpublic.
These teams are expected to complete their work in 90 days, after which full implementation of the merger will begin and last for six to 12 months.
After the integration, the new organization will reportedly maintain the core competencies that existing clients chose in making the decision to work with Draft or FCB.
The integration committee will be led jointly by Harries and Laurence Boschetto, president and COO of Draft, according to a message from Howard Draft to employees.
Despite the flexibility that the new organization will provide clients and the extended period before full integration, the possibility of certain client conflicts cannot be ruled out, the company said. The management of both agencies has and will continue to communicate regularly with all clients as it relates to the benefits of the merger.
Draft added in his message that the combined unit will have “a unified management team and a single P&L.” He continued: “The centrifugal force, the physical influence of this new activity, will be creativity.”
According to Draft’s message, the new entity has “more than 9,000 employees across 110 countries.”
FCB offers services in branding, creative, digital and media planning and has reportedly developed particular strength in the growing markets of India and Brazil. Draft is known for its work in behavioral strategic development and the creation of profitable customer experiences through data and CRM, retail and promotions, accountability and ROI discipline.
The merged company will offer services in brand advertising development, CRM, interactive marketing, promotions, retail, healthcare as well as in direct TV, interactive and mass communications.
According to news reports, this move was seen as an effort by the struggling ad agency holding company to create a new that combines the behaviorally driven focus of Draft, known for its direct-marketing and promotions expertise, with one of the advertising industry’s oldest giants.
