Interpublic Media Group, the corporate-level unit created by giant Interpublic agency holding company Interpublic to oversee the operations of media units like Initiative Media, Magna Global, and Universal McCann, appears to be building its infrastructure by drawing heavily from Initiative. On Wednesday, Anaka Kobzev, supervisor-media relations and corporate communications at Initiative, announced that she has joined Interpublic Media as director of corporate communications. She follows Patty Kerr, who earlier this year jumped to senior vice president-director of communications at Interpublic Media, from executive vice president-director of communications at Initiative. That the fledgling media unit finds a need for two high-level communications executives, when its peers at other agencies don't even have one dedicated to that function, is telling in itself. But their moves follow the shift of another high-profile Initiative executive, former Executive Vice President-Director of Global Research Integration, Stacey Lynn Koerner. In February, Interpublic announced that Koerner would become president of a new "consumer experience" unit that has been recruiting top-level researchers and analysts for several months. The new unit, which has officially been named the Consumer Experience Practice, or CEP, is expected to announce its first outside hires as soon as next week, and they promise to be some interesting picks. Meanwhile, Initiative is not expected to replace Kerr, or Kobzev, but will have all of its communications handled by Vice President-Corporate Communications Leah Gross.
In a surprising diversification move, WPP Group's GroupM division, which oversees the operations of MediaCom, Mediaedge:cia, and MindShare, Wednesday announced the acquisition of IEG Inc., a Chicago-based publisher of newsletters and data about sponsorships and event marketing. The deal comes just days after a publisher, Meredith, announced the acquisition of an ad agency. GroupM did not disclose how IEG would be integrated into its operations, but it alluded to IEG's "groundbreaking metrics" and how they can "embed predictability and accountability" into sports, arts, entertainment, experiential, online, affinity and cause-related marketing and events. "Sponsorship is tailor made for a world where consumers are in control. It communicates without interrupting and allows brands to build financial and social capital by partnering with the organizations and experiences that their customers love," stated Lesa Ukman, co-founder of IEG, who becomes chairman of the new GroupM unit. Terms of the deal were not disclosed, but investment banker DeSilva & Phillips represented IEG in the transaction.
CBS Corp.'s first three months as a public company were like an average working day on "Survivor": A little heavy lifting, no surprises, and some rewards. Net earnings from continuing operations inched up 1 percent to $227 million. CBS radio was the big drag on its results, with operating income down 14 percent to $163 million. Radio revenue fell 6 percent to $435 million. Much of this came from a loss of advertising dollars as a result of Howard Stern's highly publicized departure to Sirius Satellite Radio. CBS has already replaced Stern's East Coast David Lee Roth, who has also since departed. Stern's West Coast replacement, Adam Carolla, is doing better than Roth--but not big Stern-like numbers. And CBS says overall radio advertising market revenues have hurt the business as well. On the brighter side, modest gains were made by its TV and outdoor businesses. TV operating income was up 3 percent to $383 million, with revenues climbing 5 percent to $2.5 billion. Much of these positive results came from second-round syndication license sales of "Frasier" to TV stations from the company's Paramount Domestic Television unit. TV gains were made with CBS broadcast network rerun programming during February against NBC's Torino Winter Olympics. More than a few analysts have suggested that CBS could have produced bigger results and advertising gains had it run new programming during February. Other networks such as ABC--and especially Fox with "American Idol"--bested NBC's Olympics programming. Outdoor business skyrocketed 43 percent, as the company revamped old existing advertising contracts Overall, there was positive news on the cash flow front--about which Les Moonves, chief executive officer of CBS Corp., took time to crow about. Cash flow was up 12 percent to $585 million. In a press call to company analysts and journalists, Moonves also offered a peek into how its new digital platform deals are faring. He said CBS' Verizon Communications deal--in which the telecommunications company will run CBS programming and clips on its mobile phones--is estimated to bring in about $3 million in revenue in 2006.
Looking to attract a broader audience, the Sci Fi Channel has lined up new scripted series from Hollywood boldface names. Freddie Prinze, Jr., "Will & Grace's" Eric McCormack, and Jesse Alexander - one of the creative minds behind "Alias" and "Lost" - are all producing new shows for the channel that were unveiled at its upfront presentation. From Prinze comes "The Bishop," a drama that attempts to tap into audience hunger for shows dealing with the supernatural such as NBC's "Medium" and CBS's "Ghost Whisperer." The series focuses on a young slacker who discovers he has a supernatural gift. McCormack, who is also producing a new comedy for Lifetime, is behind "Blink," a drama where a group of afterlife investigators try to help people about to make a wrong choice in their lives. "Snap," a Hitchcockian thriller about a federal agent trying to fight a seemingly unstoppable conspiracy, is produced by Alexander. In the 18-to-49 demo, Sci Fi has prime ratings this season equal to broader appealing competitors such as Discovery and A&E - as well as MTV and Comedy Central. But the NBC Universal network could have trouble increasing its upfront take since its prime ratings in the demo are down 20 percent. Sci Fi also said yesterday that it will unveil a new broadband channel, Sci Fi Pulse, on May 8.Unlike some of the slew of cable networks' new broadband channels launching this year, Sci Fi's will include full broadcasts of some of the channel's original on-air series and movies. The online channel will also include dedicated programming such as a weekly news show set to debut this summer. The network will also use Sci Fi Pulse as a sort of focus group. It plans to place pilots of potential series there and solicit viewer feedback that could determine whether a show hits the air.
Scripps Networks is attempting to take a hit format from its Food Network to its HGTV. With the talent search "The Next Food Network Star" a hit on Food, HGTV this summer will launch a similar search for an aspiring designer who will get his/her own show on the home-oriented network. "HGTV Design Star" launches July 23 and follows 10 would-be expert designers as they battle it out in an eight-week series. At an upfront presentation yesterday, HGTV also unveiled other new programming that seeks to broaden its appeal, while maintaining its focus on home design. "I Want That! Tech Toys" is a magazine-format show that highlights new innovations such as futuristic cell phones and flat-screen TVs. "Hidden Potential" gives home buyers a look at their dream home through digital imagery before they buy it. And "House Movers" (working title) tells the story of a family or individual seeking to save a home by moving it across the street. "While design shows remain popular, real estate and new product shows are quickly gaining momentum," said HGTV President Judy Girard. "We anticipate continued success with our new programming. It is reflective of the original mission and spirit of the network, yet continues to expand the definition of home and increases the brand's resonance with consumers." HGTV has seen prime-time ratings rise this season by 33 percent in its target adult 25-to-54 demo.
Just a month before 2006-07 upfront negotiations are expected to begin in earnest, TV giant Starcom USA is switching lead horses. TV buying vet and CEO John Muszynski will take the reins once again as lead negotiator, as Elizabeth Herbst-Brady, senior vice president and director of broadcast investment at the agency, begins to transition out of day-to-day negotiating duties. Herbst-Brady, who joined Starcom two years ago from executive vice president-advertising sales at Universal Television, has let it be known that she'd like to move back to New York for family reasons. Starcom is headquartered in Chicago. Herbst-Brady has not indicated what her next role might be, but given the fact that it could well be in a media sales capacity, and given the imminent nature of the 2006-07 upfront, it made the most sense for her to relinquish negotiating responsibilities. "The move is based on her expressed desire to ultimately return to New York with her family. The specific timing and details of that return have not been determined," reads the agency's statement. "Given the indefinite timing of her move, she recommended that she not lead this year's upfront negotiation process." During the transition period, Herbst-Brady will focus on an "operations" capacity, overseeing management of Starcom's broadcast investment groups. "Elizabeth has been completely transparent and honorable in her dealings with our company," said Muszynski. "She has always been a valued partner, and will be in the future. We thank her for the contributions she has made and will continue to make before she returns home." Muszynski, of course, is an old hand at running upfront negotiations, and it is not uncommon for C-level executives to play an active hand in upfront buying at big shops. In fact, it was customary for the heads of Starcom's predecessor agency, Leo Burnett's media department, to serve as lead negotiator with the networks. And names like Willard Hadlock and Dick Hobbs were known as some of the best dealmakers in the business in their day.