Merger will have Canadian impact

The global merger of Interpublic’s two leading media services companies is likely to have some effect on its Canadian operations when it takes effect in January 1999 – although exactly how and to what extent is still not known.

The Interpublic Group of Companies of New York is the latest in a series of international agency networks to form a consolidated worldwide media banner.

This move combines Western International Media and Initiative Media Worldwide to form Western:Initiative Media Worldwide, which will not only encompass all units under those banners but, in many areas, will also include the media services of some of its advertising agencies.

The Lowe Group – Roche Macaulay & Partners in Canada – has announced it will expand its relationship with Western:Initiative in Europe and other regions after the merger is completed.

Hugh Dow, president of Initiative Media, says he doesn’t know how the merger is going to shake out in Canada primarily because the Canadian ownership situation is different than in most other countries.

Dow says that in most regions Initiative Media is owned by Interpublic’s Lintas side and has a long-standing relationship with Ammirati Puris Lintas.

In Canada, he says Initiative Media, which has been operating since 1990, switched networks four years ago and moved from being under the Lintas umbrella with MacLaren:Lintas to the McCann-Erickson side under MacLaren McCann.

Interpublic’s primary holding included three global agency networks – McCann-Erickson WorldGroup, Ammirati Puris Lintas and The Lowe Group – as well as four specialized units – Western International Media, DraftWorldwide, the Allied Communications Group and Octagon, its sports and event market unit.

It also owns other agency banners, including Campbell Mithun Esty, Goldberg Moser O’Neill, Hill Holliday Connors Cosmopulos, and The Martin Agency.

Earlier this month, Interpublic bought International Public Relations and added two global public relations networks – Shandwick and Golin/Harris – to its stable which also includes Weber Public Relations Worldwide.