Commentary

Media Holding Company of the Year: GroupM/VivaKi (Tie)

GroupM and VivaKi

Open and closed cases

For seemingly contradictory reasons, we've selected WPP's GroupM and Publicis' VivaKi in a tie. Both achieved best-in-class momentum in strategic vision, innovation and industry leadership - and they managed it while moving in what appear to be opposite directions.

GroupM reinforced its dominance over the media services industry by locking up proprietary positions, giving it a strategic advantage over its peers. VivaKi adopted more of an "open source" approach, something its management team believes is the future of the business.

The organizations symbolize a philosophical rift spreading across Madison Avenue, and it'll be interesting to see which emerges as the most effective. No matter what, both GroupM and VivaKi made big bets in 2008 that are likely to reshape the media industry.

VivaKi has at its core the belief that agencies, media suppliers and even consumers operate more openly, and successes are measured by creativity and ingenuity. It's the closest thing yet to Wall Street's genuine open market structure - and other big players such as Havas, Aegis Group and MDC Partners are moving rapidly in that direction.

Meanwhile, GroupM has become an ever more dominant source of proprietary systems and knowledge, making strategic investments in next-stage digital media enterprises and restructuring buying practices. GroupM did this in 2007 by taking the lead in cultivating Nielsen's new C3 ratings currency. It did it again in 2008, becoming the first organization to negotiate out the Big 3 network's long-standing and antiquated "integration" fees, which have long vexed Madison Avenue.
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