WPPMindShare’s mysterious new business initiative was announced today in a full media blast. In a nutshell, the WPP unit is shutting its separate digital arm, MindShare Interaction, which will be integrated into the overall business, and creating four units that cover business consulting (a new business), branded entertainment (an existing business they want to expand), media buying, and client services.
The rationale: straight-up media-buying, once a high-margin business, is being increasingly commoditized, meaning buying firms have to branch out to expand.
But branching out means encroaching on the territory of the creative agencies within the holding companies, such as WPP’s JWT and Ogilvy & Mather. That’s why the media firms are moving into relatively new areas like digital and branded entertainment.
Other media firms have made similar moves of late: both IPG’s Initiative and Publicis’ Starcom MediaVest have created units to branch out into digital advertising and marketing.
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