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Havas Media

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Havas Media is the media division of Havas, the sixth largest communications group worldwide. It incorporates the media assets of Havas, which includes predominantly entities which were formerly known as Media Planning Group (MPG).

MPG was created in March 1999 as the result of a merger of Media Planning founded in 1978, and Médiapolis, founded in 1980. The two agencies specialised in offering communication and media strategy and management services, media planning and buying to its clients. Operating mainly in Western Europe and the Americas, it is the 10th largest media specialist worldwide : according to RECMA, it had billings of $9.0bn in 2005

History

The company was created in 1999 as the result of a merger between two media agencies: Media Planning S.A. founded in Spain in 1978 by Leopoldo Rodés Castañes and covering the Hispanic markets, and Médiapolis, a French company founded in 1980 by Havas Advertising which shared a common business expertise.

It was formed as a reaction to the media markets of the world, which were consolidating due to very significant economies of scale possible, and offered synergie to advertising companies, who were its major clients. Another business driver was the shift away from a commissions-based model in the media planning and buying businesses at the time towards a fixed-fee model. As one of the few large independent agencies left, Havas Advertising entered into negotiations to acquire Media Planning S.A. .

Having started out in just eight markets (Spain, Portugal, France, UK, the Netherlands, Argentina, Mexico, Colombia), today MPG is a worldwide network, covering 93% of the world’s advertising investment. It has grown organically through lack of opportunities or funding for acquisitions, and has preferred using local partnerships as a way of gaining entry to new markets.

MPG group holds Media Planning, Arena and Media Contacts.

Fernando Rodés Vilà, son of the founder of Media Planning S.A. was appointed the new CEO of Havas in March 2006.

In October 2006, Havas announced that all its media assets would be reorganised under the name "Havas Media"[1], of which Alfonso Rodes Vila, brother of Havas CEO Fernando, was named the CEO in July 2006[2].

Controversy

Havas Media's MPG USA has been criticized by the Industrial Workers of the World for not negotiating a severance agreement with one of its members who was laid off in April 2009[3]. The union has initiated a campaign to get their biggest client, Sears Holdings Corporation, to stop using MPG by protesting outside of Kmart stores[4]. MPG has not publicly commented on the dispute.

References

  1. ^ Havas Unites MPG Media Agencies Under the Umbrella of Havas Media, PR Newswire, October 23, 2006
  2. ^ Steve McClellan, Havas Shuffles Media Ops, Adweek, October 23, 2006
  3. ^ Havas' Media Planning Group Under Fire Following April Layoffs, Mediabistro.com, July 28, 2009
  4. ^ MPG Falsely Advertises Workers' Rights, examiner.com, August 11, 2009
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