LOS ANGELES Interpublic Group's McCann Worldgroup is setting up a Tag unit near its San Francisco office to handle a newly signed, undisclosed client and contribute to the agency's Microsoft Xbox account, according to Matt Ross, the president of McCann Worldgroup S.F., who also oversees the agency's global Microsoft business.
All told, Tag S.F. will initially employ 25 staffers. Though it will assist on Xbox, the business will primarily remain at McCann Worldgroup, Ross said.
Tag S.F. will be run by svps Scott Duchon and Geoff Edwards, who are also group creative directors; svp, group strategy director Mike Harris; and gm Nils Peyron, who will also remain evp and global brand director of Microsoft at McCann Worldgroup S.F.
Matt Stiker, svp, group account director, will remain at McCann Worldgroup, along with the rest of the account, production and media staff.
McCann Worldgroup has already established Tag shops in New York and Tokyo. Tag S.F. will move into its own space in the fall.
Ross, who oversees an agency that has grown to 650 employees, said Tag was set up to offer clients a boutique backed by large-network resources. "Not every client is cut from the same cloth," he said. "Some, like our new client, want a smaller shop with a more intimate setting. Now we have the ability to line up both ways."
Ross said the new client, large enough to sustain Tag on its own, does not present a conflict with current accounts. In fact, Tag and McCann Worldgroup will be operating under the same P&L, so Tag would not be considered separate and distinct in terms of new business conflicts, he said.
"I see three approaches to new business: Some McCann pitches without Tag, some with Tag as part of our pitch, and in certain instances Tag will go after new clients on its own," he said.