In an effort to streamline Publicis Groupe's VivaKi network, Razorfish and Digitas on Wednesday announced an agreement to rely on consolidated support functions and management across all non-U.S.
markets. The move impacts numerous high-ranking executives throughout the Publicis division.
Global operations, including finance and talent, will be synchronized to create single service
teams for the two agencies. Finance will be led by Joe Tomasulo, currently CFO of Digitas, while talent will be led by Alicia Shankland, currently head of Human Resources for Razorfish. Meanwhile,
Razorfish chief operating officer Sydney Hunsdale will become CFO of VivaKi EMEA.
"We have two powerful digital agencies inside Publicis Groupe, and we have a strategy to strengthen each brand
while also achieving important efficiencies that will deliver cost savings to the organization," said David Kenny, managing partner of VivaKi. "The harmonization principle has been simple: We do need
two digital agencies; We don't need a redundant support framework."
In the 20 markets outside of the U.S. where Razorfish and Digitas exist, the integration efforts will be focused on achieving
a common investment in real estate, technology, non-proprietary data feeds, and research and development. In these markets, Razorfish and Digitas will employ a "2-door policy" to coordinate
investments in an effort to maximize efficiencies.
Stephan Beringer, the International President for Digitas who has been leading the integration work, will assume a permanent operations role
for both agencies in Europe and APAC, while, Dave Friedman, President of the Americas Region for Razorfish, will oversee similar cross-brand synergies in Latin America.
Denuo, the innovations
unit of VivaKi dedicated to new forms of creativity and ways of working, will also align with Razorfish and Digitas, reporting to Laura Lang.
Rishad Tobaccowala, the CEO of Denuo, will take on
a broader VivaKi role, helping guide VivaKi and its clients into the future landscape. Tobaccowala will relinquish his day-to-day operational role of CEO of Denuo, but is expected to continue to be a
mentor to its management team and a resource to the executive team.
Also, Bob Lord, CEO of Razorfish, has been added to the VivaKi Board of Directors. Darin Brown, formerly President of
Razorfish Europe, assumes the new position of President of Global Accounts and Innovation for Razorfish, while Lee Sherman, President of Razorfish Asia Pacific, continues in his role, reporting to
Beringer.
"The management teams from both agencies will align at even the most senior levels of the organization," Kenny said of the changes.
In October, Publicis Groupe SA and Microsoft
finalized the acquisition of Razorfish by Publicis in a deal valued at about $530 million. The deal brought Razorfish organizationally under VivaKi, the Publicis unit that also oversees Digitas, and
has at its core a deepening of relationships between the company and media vendors.
In particular, VivaKi late last year brought together top online video suppliers (AOL, Broadband Enterprises,
CBS, Discovery, Hulu, Microsoft and Yahoo), along with a half dozen major marketers, to embark on the Pool initiative -- a highly collaborative effort to develop a more consumer-friendly replacement
for the standard pre-roll ad unit.
Based on results for the first eight months of 2009, Publicis' digital business, including Razorfish, now accounts for slightly more than 25% of its aggregate
revenue.