Draft FCB soothes merger tensions with second shop

Draft FCB, the agency created by Interpublic Groups merger of its Draft and FCB networks, is launching a second agency to avoid conflicts caused by the union.

Draft FCB, the agency created by Interpublic Group¹s merger of its Draft and FCB networks, is launching a second agency to avoid conflicts caused by the union.

The agency network, formed late last year, has several conflicting accounts:

FCB handles SC Johnson and Motorola, while Draft has Procter & Gamble and Nokia as clients.

Speaking exclusively to Marketing Week, network chief executive and chairman Howard Draft says the second agency ³brand² ­ as yet unnamed ­ will be launched both in the UK and America.

He insists: “It is not a conflict shop: it is a second brand, a second shop.” The agency will be separate in both location and personnel but Draft says it will have the same level of resources and talent invested in it.

Draft adds: “We have dealt with multiple conflicts and haven¹t lost any major revenue, which is what happens in most mergers.” He claims the new entity, which came into being two months ago, could have lost as much as $500m (£255m) of billings but instead has lost just $30m (£15.3m).

IPG announced its intention to merge the Draft and FCB networks in June last year. Draft says the new agency reflects a ‘new’ model in advertising, erasing the boundaries between disciplines including direct marketing, advertising and digital work.

The second agency’s London office is expected to have opened its doors by the time the Draft and FCB teams move to shared offices in Victoria this summer.

The senior management teams were unveiled in September with Draft London¹s John Minnec and FCB London chief executive Nigel Jones splitting duties as co-presidents in the UK. Former Draft managing director Sez Maxted, named chairman following the merger, has since left the agency.

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