Euro RSCG Gets All for 1, 1 for All

Euro RSCG’s consolidation of 11 multidisciplinary agencies into two agency networks last week is an attempt by the ad holding company to respond to clients’ increasing demand for integration.

“Increasingly, clients are understanding that the way to come to market isn’t just with traditional advertising, but with the right combination of ingredients,” said Euro RSCG CEO Bob Schmetterer.

The new entities, each with a single profit-and-loss center, will bill a combined $4.3 billion.

Ron Berger, former CEO of Messner Vetere Berger McNamee Schmet terer/Euro RSCG, will steer Euro RSCG MVBMS Partners. Gary Ep stein, previously CEO of Euro RSCG McConnaughy Tatham, will run Euro RSCG Tatham Partners. Sources said the challenge for the CEOs is uniting the strong personalities at the top.

The consolidation signaled the end of Euro RSCG’s loose grip on its personality-driven, entrepreneurial offspring, which, despite belonging to a network, have prized their individuality.

Epstein said Euro RSCG is offering financial incentives to the executives to promote their collaboration; these include an “integration bonus” for those who bring business to other agency units. “Now, instead of people saying, ‘What’s in it for me?’ they’ll say, ‘What’s in it for us?’ ” said Berger.

Schmetterer said no conflicts result from the realignment.

—with David Kaplan

and Trevor Jense