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IPG Merges Draft, FCB

Interpublic Group yesterday announced (pdf) that it is merging two of its four largest agencies to offer both traditional and new approaches under one roof, combining the venerable Foote Cone & Belding with the younger, direct-marketing focused Draft, reports the New York Times (via MarketingVOX). The merged agency will be the second-largest IPG unit, behind McCann Worldgroup.

Michael I. Roth, chairman and CEO at Interpublic, New York, is quoted as saying, “This is what clients are looking for - the big idea that can be brought across all media, all channels, all distribution models” - ranging from TV, direct mail and the internet to in-store marketing, promotions and branded entertainment.

IPG’s Draft and FCB units will become Draft FCB Group, with some 9,000 employees in 110 countries, bringing together prominent digital holdings such as R/GA, Draft Digital and FCBi, writes ClickZ, adding that R/GA and FCBi will keep their autonomy; the more tightly integrated Draft Digital may undergo changes - to be determined in the next 90 days by an integration committee.

Draft founder and CEO Howard Draft will head the new company, and FCB worldwide CEO Steve Blamer will step down after a period of integration. FCB’s Jonathan Harries will guide creative vision as worldwide chief creative officer, according to ClickZ.

The merger is likely the first time that a “below-the-line” shop assumes control of a “traditional” agency of the size and reach of FCB, according to AdWeek, which quotes Roth as saying, “We carefully considered the potential of a combination and believe that the resulting organization will be highly responsive to the new realities that are transforming the consumer and media landscape.”

The merged agency, however, may lose accounts because of conflicts between competing marketers working with the same agency. For example, big online spenders Nokia and Motorola will now be serviced by the same agency; also, Draft works with Kellogg, Mars, Nokia, Procter & Gamble and Verizon, whereas Foote Cone works with their rivals, including Kraft, Hershey, Motorola, S. C. Johnson and Qwest.