BofA Squeezes Ad Men With Web Auction

US Banker,  October, 2002  by Matthew de Paula

Tags: Bank of America Corp., media, Web

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Bank of America jolted the advertising industry by taking bids for its $160 million media account buying and planning business over the Internet. Those who pooh-pooh the move say it could commoditize media buys by simply rewarding the lowest bidder- relegating media buying and planning to a price-based venture, sidelining brand and marketing strategies.

While BofA's business did not, in fact, go to the lowest bidder, what the auction does signal is a trend where huge companies like BofA, Citigroup and car manufacturers use their heft to leverage lower advertising rates by buying in bulk.

Starcom Mediavest came away the enviable winner of BofA's sizeable chunk of business, but it was the lowest bidder in some, not all, media categories. The Bcom3-owned firm beat out three other finalists: Omnicom Group's PHD, Interpublic Group's Initiative Media, and Zenith Media, owned jointly by Publicis Groupe and Cordiant Communications Group. ...