• by April 19, 2001

The world's three largest advertising and marketing communications firms -- Interpublic Group of Cos. Inc. and Omnicom Group Inc. of New York and WPP Group Plc of London -- said on Thursday that they are creating an online advertising exchange. The three companies said the new venture will make media buying and selling of advertising time and space more efficient by connecting buyers and sellers electronically.

It will also provide buyers and sellers with the research data needed to plan media buys, "replacing the fractured and labor-intensive process in which media data is exchanged today," the companies said.

"Interpublic, Omnicom and WPP believe that technology presents a great opportunity to create a platform from which the billions of dollars now spent on media every week can be transacted much more effectively and cost efficiently," Omnicom Chief Executive John Wren said in a statement.

"We expect that the platform will both improve service and cost-efficiency to our clients and simultaneously benefit media sellers," he said.

The three said that they hope to launch the new venture in the second quarter of this year and plan to invite other advertising and marketing companies to join.

Interpublic's Michael Lotito will serve as the venture's chief executive officer. He was previously president and chief operating officer of Interpublic's media planner and buyer, Initiative Media.

The new venture will be based in New York.