OMC Builds New Direct Home for SBC

DALLAS Omnicom Group has averted a conflict with its $720 million SBC Communications account by forming a new agency to handle the majority of the client’s direct marketing duties, the incumbent, Rapp Collins, confirmed.

The move was orchestrated to avoid a potential conflict that arose this summer when SBC struck a joint venture with EchoStar, a competitor of Rapp Collins client DirecTV. It is the latest example of how far holding companies will go to satisfy important clients and how account consolidations and conflicts, especially in the telecommunication category, are increasing the need for customized client solutions.