• by Joe Mandese , February 21, 2007

In a surprise move, Publicis Groupe Media has integrated the operations of its Starcom MediaVest Group and ZenithOptimedia Group media networks in at least one major market: India. The move, announced by Chairman Jack Klues Tuesday, would form a new centralized media buying operation dubbed India Media Exchange. Planning would continue to be handled separately by each media network.

The move is a surprise, because ever since forming Publicis Groupe Media in September 2004, Klues has maintained there were no plans to integrate and of Starcom MediaVest Group's and ZenithOptimedia Group's operations.

The move also comes as other big agency holding company media units are centralizing their media buying and negotiating clout. Interpublic's Magna Global unit has been the most formalized, but Omnicom also has been expanding the number of markets its Opera unit - a centralized negotiating arm for OMD and PHD - operates in. Last year, WPP's GroupM elevated Rino Scanzoni to Chief Investment Officer in North America to coordinate and leverage the buying clout of MindShare, Mediaedge:cia and MediaCom in the U.S. television marketplace.

In Tuesday's announcement, Klues gave no indication whether the media exchange concept would be broadened to other markets, or whether it was something unique to India, but he did state that new unit was formed to leverage its scale to "create a viable advantage for clients' businesses."