DMB&B spins off media house
"It will be a division of DMB&B, but it will have its own identity," said Neil Selby, general manager for DMB&B.
The idea of creating a separate media house had been discussed for almost three years, but Selby said the push to create one really gained steam over the past nine months after a planned deal to create a media company between DMB&B and Leo Burnett failed. "It has been something that I have wanted to set up for the past nine months," Selby said. "It makes sense to have a powerful media company."
Spinning off media departments into separate entities has been a growing trend within the advertising industry. Agencies are going this route because many clients want to focus not just on the content of a campaign, but also the medium by which it is distributed. Media houses then focus on providing detailed research and services related to distribution.
The creation of Media Vest is in line with the company's strategy of separating media planning from the rest of the company throughout the world. According to Maciej Sobierajski, DMB&B's new media director, offices already exist in England, Germany, France and the United States.
But creating the new division wasn't that easy, executives at other agencies said. They added that upper management with DMB&B was against the idea and had tried to block it.
Selby denied such industry talk, saying there was not any resistance or attempts to block creation of the media house. "There is a general welcoming of Media Vest," he said.
Rupert Slade, managing director at independent media house Initiative Media, said that many ad agencies find it difficult to part with their media branches and that this is not a phenomenon unique to Poland.
"There's always resistance when media departments want to become independent," because the media section represents a great deal of cash flow, Slade said.
But Selby disagreed. "It all goes into the same pot, ultimately," he said.
The pot for the new media house has shrunk a bit, however. In June, DMB&B lost a $12 million media account for Master Foods, which makes products such as Mars chocolate bars. The account was taken by Mediacom, which is associated with Grey Warszawa. Selby declined to comment on the account. In a statement, Robert Kaczmarek, a spokesman for Master Foods, neither confirmed nor denied the switch. Master uses global agencies DMB&B, Grey and BBDO. He added that the company occasionally likes to make changes to look for efficiency and new ideas. There is no move to put the agency structure "into any kind of formal review," Kaczmarek said.
The idea of creating a separate media house had been discussed for almost three years, but Selby said the push to create one really gained steam over the past nine months after a planned deal to create a media company between DMB&B and Leo Burnett failed. "It has been something that I have wanted to set up for the past nine months," Selby said. "It makes sense to have a powerful media company."
Spinning off media departments into separate entities has been a growing trend within the advertising industry. Agencies are going this route because many clients want to focus not just on the content of a campaign, but also the medium by which it is distributed. Media houses then focus on providing detailed research and services related to distribution.
The creation of Media Vest is in line with the company's strategy of separating media planning from the rest of the company throughout the world. According to Maciej Sobierajski, DMB&B's new media director, offices already exist in England, Germany, France and the United States.
But creating the new division wasn't that easy, executives at other agencies said. They added that upper management with DMB&B was against the idea and had tried to block it.
Selby denied such industry talk, saying there was not any resistance or attempts to block creation of the media house. "There is a general welcoming of Media Vest," he said.
Rupert Slade, managing director at independent media house Initiative Media, said that many ad agencies find it difficult to part with their media branches and that this is not a phenomenon unique to Poland.
"There's always resistance when media departments want to become independent," because the media section represents a great deal of cash flow, Slade said.
But Selby disagreed. "It all goes into the same pot, ultimately," he said.
The pot for the new media house has shrunk a bit, however. In June, DMB&B lost a $12 million media account for Master Foods, which makes products such as Mars chocolate bars. The account was taken by Mediacom, which is associated with Grey Warszawa. Selby declined to comment on the account. In a statement, Robert Kaczmarek, a spokesman for Master Foods, neither confirmed nor denied the switch. Master uses global agencies DMB&B, Grey and BBDO. He added that the company occasionally likes to make changes to look for efficiency and new ideas. There is no move to put the agency structure "into any kind of formal review," Kaczmarek said.
