CAN DINOSAURS DANCE? DDS VS MEDIABANK

Backroom operations are battling it out. The stakes are high.

Agencies seeking out software systems for the management of an enterprise wide management suite are pitting Donovan Data Systems (DDS) to defend against Mediabank as smaller contenders including Strata and Harris sit it out in the bleachers. All the while, entrepreneurial entries in the form of MediaX begin nipping at all their heels.

Starcom’s move from Donovan to Mediabank likely cost them a small fortune and a major migraine, sparking rumors of a return to Donovan, while driving part of its account to nimble entrepreneurs ala MediaX.

IPG’s Mediabrands is on the fence and about to fall one way or the other as Mediabank pushes for a move to unseat Donovan. Mediabank toppled Donovan when it won the DraftFCB account, jamming its foot in the Mediabrands door.

But eating Donovan’s lunch will not be an easy feat as it represents the majority share of agency business, driving close to $200 million in revenue.

Donovan’s Achilles Heel: It’s the system of choice that everyone loves to hate and a dinosaur that cannot easily innovate.

Mediabank’s underbelly exposes hubris that allows them to believe they have sufficient resources to manage a large win.

Among the underdogs, Harris seems not to have been invited to the party while Strata was simply glossed over.

And …. An honorary mention to the new entries that seem to “get it” and are willing to match their resources to agency visions.

An upset may be close at hand, before year’s end.

IPG'S MEDIABRANDS ON THE FENCE?

At the tail end of 2008, IPG's media management unit, Mediabrands, inked a multi-year deal with Donovan Data Systems (DDS). While it is unclear how much of the IPG spending flows through DDS (IPG agencies place upwards of $25 billion in media annually) it is nonetheless the lion's share.

DDS's competitor, Mediabank, quietly shored up its digital offering and in six short months following the DDS/Mediabrands deal Mediabank signed DraftFCB for digital services. A small but key foothold at IPG.

It was a whoops! for DDS as they struggled to keep the business.

After several starts and stops in 2009, Mediabank hired former Yahoo! and Right Media exec Bill Wise as CEO this past June 2010. It proved to be a wise move as Bill's vision and ability to chart and navigate digital waters was on spot for Mediabank.

Significant strides and development of their offerings over the last eight months, folding in Audience On Demand services in DSP fashion, places Mediabank at the nexus of what is coming next.

And .... it may have panned out as rumors have surfaced concerning a move by Mediabrands to DDS's rival Mediabank. In light of DDS's reluctance to move nimbly into the digital landscape it would not, however, come as a surprise and a severe blow to DDS.

If the Mediabank/DDS contract is up at the end of this year, we may just see a new face at Mediabrands.