• Adweek, Monday, May 11, 2009 9:34 AM

Starcom MediaVest Group is creating an entity called the SMG Exchange (SMGX) -- a new ad-buying unit that will serve clients at all three SMG media shops. John Muszynski has been elevated to the new post of chief investment officer and is charged with building the new operation from scratch. SMGX will attempt to maximize the leverage of the estimated $22 billion in buying clout brought to the marketplace each year by Starcom, Spark and MediaVest.

The new operation will initially focus on about $7 billion in local media, including TV and radio, out-of-home, newspaper, kid's media and sports marketing. National broadcast will be phased in by 2010. The SMGX model is "opt-in," meaning clients can choose between it or keeping their dollars at the specific shops where their budgets are currently parked.

Laura Desmond, worldwide CEO at SMG, says the big dollars are just one piece of the SMGX equation. "What is equally important is the fusing of data and market intelligence and advance technology with scale. Those three things work hand in hand," she says.

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