• by David Goetzl  @dgoetzl, March 29, 2011

Interpublic's Mediabrands is restructuring global operations so radically that Japan is being lumped in with a slew of European countries, Greece with South Korea and France with China. Mediabrands, the umbrella group top-lined by UM and Initiative, is transitioning from four geographic regions to three "clusters," which are based on client needs, relevancy and growth opportunities.

The three new "clusters" are "North America," "G14" and "World Markets." UM and Initiative will have separate operations across each. Within the "clusters," "North America" includes the U.S. and Canada and currently comprises 50% of Mediabrands revenue.

Then it gets interesting.

The 14 markets within the "G14" include a slew of European countries such as Germany, France and the UK; plus Japan and Australia; and the so-called BRIC (Brazil, Russia, India, China) markets. These make up 30% of Mediabrands' current revenue.

The "World Markets" stretch from South Korea and Hong Kong to Austria and Switzerland to Turkey to Africa, with current revenue at 20%.

Within "North America," Tim Spengler, an Initiative veteran, will lead the agency, with two candidates being considered for the UM post.

Within the "G14," Eric Bader will lead Initiative and Jim Hytner will head UM. Bader joined Initiative in 2010 after running his own mobile marketing company. Hytner, who has extensive experience in British broadcasting, has been head of UM's Europe, Middle East and Africa operations.

At the "World Markets," Initiative's Mauricio Sabogal takes on the new role at the agency and Andrea Suarez transitions at UM.

Initiative global CEO Richard Beaven announced the reorganization at Interpublic's Investor Day and offered a peek at how the structure came together. When evaluating Australia, for example, executives asked "what is the logic" of it sitting as part of an Asia-Pacific region? "Australia arguably has more in common with, say, the U.S., the UK and some other markets," Beaven said.

The "clusters" on one level fall in line with how some clients are operating. One client, Unilever, has moved Russia in a way that it is considered more of an emerging market.

But there is also a need to structure operations in a "much more relevant way to create ... speed, dynamism and success," Beaven said. Also, to have a venue for quickly sharing best practices among leaders in related markets.

Beaven spoke about an evolution in the media business at large, going from an emphasis on spending to strategy. "It's really been about spending our clients' money wisely. It's been about managing costs, and it's been about awareness and creating preference," he said. "We are making a very rapid transition ... we are faster and becoming involved in not only spending wisely, but working with CMOs to align to their priorities."