The division, to be called CultureCom, is claimed to be the first venture of its kind by a media agency.
The launch comes at a time when nearly 8 per cent of the UK population is made up of people from ethnic minorities. In London, the figure rises to 31 per cent.
CultureCom will offer a full service including planning, buying, creative consultancy, media analysis, consumer insight and effectiveness.
MediaCom's decision to establish the division follows several years of involvement in cultural campaigns for various clients. These include promotion of the Metropolitan Police's Project Trident, which targets gun crime in the black community.
Monir Ali, the MediaCom cultural media specialist who will head CultureCom, said it had been born as a result of increasing client needs and the different demands of ethnic consumers. "Advertisers need to re-evaluate the sector," he added. "Our objective is to redefine the way ethnic communities are perceived."
Latest research shows that ethnic minorities have more disposable income than ever before, totalling £32 billion. Last year, the IPA urged advertisers to focus on what it calls the "brown pound".
Meanwhile, an industry audit showed the use of actors from ethnic backgrounds in ads trebled during 2003.
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