• Mediaweek, Sunday, November 8, 2009 9:38 PM

Mediabrands, which oversees Initiative, Universal McCann and other IPG media assets, is exploring various restructuring options. One possibility is combining the agencies' local spot-buying units with Mediabrands' barter trading unit, Orion. The move would maximize the use of Orion's sophisticated electronic trading platform.

The restructuring discussion is being prompted by head count reductions and the fact that advertisers are devoting smaller shares of their budgets to local media -- anywhere from 8% to 27% less. Any restructuring plan will have to gather marketplace intelligence more effectively and accommodate efficient technology platforms.

Mediabrands' willingness to combine a barter operation -- which typically buys remnant time at bargain rates -- with its regular local buying units has buyers buzzing. "That could change the model completely," says a senior agency executive.

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