The clamor of alarm bells could (should?) be tolling in the corporate headquarters of media owners across the globe!

The cause of the alarum is yesterday’s announcement by the world's three dominating agency groups – Interpublic, WPP and Omnicom – that they are to form a joint media buying and selling online bourse. Other agency networks will be invited to join the consortium in due course.

The concept revolves around a single electronic system for managing transactions, payments and research data both for traditional and online media buying and selling.

Says Michael Lotito (40), chief executive of the start-up: “It's going to take the same processes we use today but enable them with technology so that they are more efficient. The concept is to build this bridge between buyer and seller.”

Lotito was until last month president and chief operating officer of Interpublic’s Initiative Media North America. The venture, as yet unbranded, will be based in New York.

News source: New York Times