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Northwest’s vp of corporate communications, Mark Abels, said, ‘We were looking to maintain or reduce compensation. The agency was looking to do what would essentially increase it. That was a gulf we couldn’t bridge.’
Compensation at JWT for the heavy newspaper and spot account, which billed close to $25 million in the first half of 1992, had been a fee. Media First will be paid on a commission basis.
Kostyra explained that since Northwest was not unhappy with its media service at JWT, when the split happened, he became an option. He said, ‘I can offer continuity and adaptability to meet their needs. I’m starting with blank slate as far as structure is concerned. I can tailor-make to their needs.’
Media First’s services will include buying, planning, barter and programming. Kostyra plans to hire seven people after Jan. 1. After that he will hire as needed. Currently Northwest is Media First’s only client. Kostyra said he will accept both agencies and advertisers as clients.
In September Northwest served JWT with a 90-day termination notice as required by their contract, but the two continued to negotiate until the week of Christmas when Northwest dimissed the agency, said Abels. Kostyra’s resignation from JWT was announced Dec. 23.
Copyright Adweek L.P. (1993)
