In a move that may be the precursor to the current trend of advertising agencies unbundling their media buying function into separate operations, Cramer-Krasselt is adding a new position of corporate media director to oversee the media functions at its four agencies.
As such, Greg Clausen, who had spent the last 18 months as executive vice president of media and business development at Louisville-based Creative Alliance, rejoins C-K as executive vice president and director of media for the $500 million agency.
Clausen, who previously spent 12 years with C-K in its Milwaukee office, will oversee the media directors of C-K’s four offices: Bill Blaha in Chicago; Bryant King in Milwaukee; Rich Melin in Orlando; and Kellye Hubble in Phoenix.
He reports to C-K President and CEO Peter Krivkovich.
Though Krivkovich wouldn’t say whether the agency, which does work for Corona beer and Winn-Dixie supermarkets among others, is about to spin off its media business into a separate operation, he didn’t deny the agency is headed in that direction.
“The plan is to make a statement and move aggressively,” Krivkovich said, adding that just what form that might take is not yet clear.
Even internally there is precedent at the agency for unbundling some units. Late last year, the agency spun off its public relations business into a separate operation to compete more aggressively in the public relations arena.
On the media side, agencies have followed their counterparts across the negotiating table in consolidating media planning and buying functions over the past few years as both sides jostle for more negotiating clout.
By spinning off media departments into separate units, agencies have also been able to go after business that the main agency either can’t handle because of a conflict or hasn’t been able to get on the creative side.
As a result, separate media units have become a lucrative revenue source for agency holding companies. One thing in C-K’s favor is that most large separate media operations don’t play in the midsize arena C-K plays in, leaving plenty of room for a midsize media only firm.
Cutbacks continue: With no real sign of a turnaround in the advertising and public relations business, agencies continue to pare their staffs. The latest is WPP Group public relations firm Hill & Knowlton, which cut three positions on Wednesday. One of those positions was held by Brian Gill, a senior account executive. Gill had been suspended after being picked up by New York police following the city’s St. Patrick’s Day Parade in March after a bar owner accused him of selling phony fundraising tickets. Gill was cleared of any wrongding in the incident this week in New York and no charges were filed. Agency chief Gene Reineke cited the continued sluggish economy for the cutbacks.
On the move: Mark Magnesen, controller of Kraft Foods’ Cheese division, was named vice president, investor relations, of Kraft Foods effective June 10. He reports to Marla Gottschalk, senior vice president, financial planning and investor relations. … At Leo Burnett USA, Rachel Drexler was named an agency vice president. … Susan Fultz, formerly with GCI Group, was named managing director of health-care communications agency Robert A. Becker Euro RSCG, Chicago.
Account action: Hawthorne Race Course named Robert Brandt and Associates, Burr Ridge, to handle public relations for its Suburban Downs summer harness racing meet.
Not a bad investment: Sometimes, endorsements are a gamble. And sometimes they pay off. Scudder Investments’ paid off. All four of the golfers who wear the firm’s name on their headwear will play in the U.S. Open June 13-16 at Bethpage State Park in Farmingdale, N.Y. John Cook earned his U.S. Open spot alongside fellow Scudder representatives Steve Stricker, Lee Janzen and Scott Verplank, with a 2nd-place finish in last weekend’s Memorial Tournament. The programis managed by Bill Barsanti, vice president of Chicago-based Scudder Investments, and Skokie-based Paragon Marketing Group.
On tap: More than 400 magazine and agency executives are expected for Thursday’s annual Chicago Magazine Day at the Sheraton Chicago Hotel & Towers. A 10:30 a.m. seminar on circulation hosted by the Audit Bureau of Circulations will be followed by a noon luncheon, featuring the Magazine Publishers of America’s Kelly Awards.
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