Reed replaces Peter Phippen, managing director of BBC Magazines, who is to stand down from the role but will remain a PPA board member.
PPA chairmen typically occupy the role for around two years, though there is no set term of office.
The . It said the overhaul has led to a small number of redundancies but would "better serve the needs of the PPA membership". No further specific details were provided.
This latest overhaul of the trade body follows the restructure in 2008 which led to the axing of a number of marketing roles.
The appointment of Reed follows , replacing Jonathan Shepherd.
McIlheney's last-high profile magazine appointment was when he resurrected Smash Hits in November, presiding over the Take That special issue for Bauer.
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