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The Omnicom media network OMD is launching a UK umbrella group that

will see OMD UK and Manning Gottlieb Media merging some of their

interests.

The two agencies will remain as separate competing businesses but

Manning Gottlieb will take on the OMD brand to become Manning Gottlieb

OMD. The two agencies will now conduct joint buying negotiations across

all media and combine their research, online and econometrics

resources.

Paul Taylor, the chief executive of OMD UK, will take the enlarged role

of chief executive of OMD UK Group. As well as leveraging the strengths

of both agencies, the creation of the UK group fits with OMD Europe's

ambition to create a stronger network by rebranding all agencies as

OMD.

A full merger of the two agencies was discussed but Taylor said this was

ruled out at "an early stage". Instead, the creation of the OMD UK Group

will see the formation of two new divisions; OMD Interactive, combining

the digital resources of both agencies, and OMD Metrics. The management

structures at both agencies will remain unchanged and they will continue

to run from separate premises.

Taylor said: "OMD UK and Manning Gottlieb OMD will offer two distinctive

but complementary brands. This development is designed to provide

opportunities for clients and staff, by improv-ing and extending common

resources."

Nick Manning, the chief executive of Manning Gottlieb OMD, said the move

would lead to the agency playing a fuller role in the future of OMD

while preserving its own culture.

"The model of the 80s and 90s of merging agencies is discredited because

of the client conflict this creates and, importantly, because of the

culture conflict it also creates," Manning explained.

The consolidation of interests between OMD and Manning Gottlieb follows

similar moves in the market last year such as the creation of

Interpublic's joint negotiation unit, Magna, and of Zenith Optimedia

Group.