• by February 17, 2004

Talk about a surprise. Initiative Media has won the estimated $200 million AOL offline media business in a run-off with Carat. The months-long review process pitted Initiative, the incumbent, against Carat, and Starcom, which withdrew, allegedly at the last minute on Feb. 6, after citing a conflict with Disney.

It is truly curious that after undergoing such an intensive review process that AOL would stick with the same shop. Why stage a review if you don't want change or new insight? To be fair, perhaps Initiative offered that during the review. Or, were there conflicts of a different nature -- philosophical conflicts, perhaps. After all, Carat chief David Verklin has been an advocate for systemic change in the media landscape -- doing away with the network upfronts and so forth. Does this run counter to Time Warner thinking? Could be one way of viewing it.

Even more curious, is the fact that AOL's announcement today was fronted by Joe Redling, the online media company's chief marketing officer who usually stays in the background. Len Short, AOL's flamboyant executive-VP of brand management, is out, AOL confirmed today. Short will take on strategic projects, AOL said. (more on this in tomorrow's MediaDailyNews.)

Meanwhile, Initiative will coordinate all media strategy, planning and buying for all AOL brands, AOL said in a statement, with a stepped-up emphasis on program integration and targeting on a national and local level.