Interpublic to be Minority Partner in New Multicultural Advertising Agency
NEW YORK--(BUSINESS WIRE)--Feb. 8, 2008--Steve Stoute and Shawn "JAY-Z" Carter announced today that they will form a new advertising agency dedicated to reaching the multicultural consumer. The firm will be majority owned by Mr. Stoute, 37, and Mr. Carter, 38, with Interpublic Group (NYSE: IPG) holding a 49% stake in the new company. Stoute is the founder of Translation Consulting + Brand Imaging, a leading brand consultancy for the urban youth market which works with many of the world's best-known brands. Shawn "JAY-Z" Carter is a recording artist, the former president and CEO of Def Jam Recordings and Roc-A-Fella Records and an owner of the New Jersey Nets. The agency, called Translation Advertising, will be headquartered in New York and will work with clients on a full range of advertising and marketing programs.
In October of this year, Interpublic Group acquired Stoute's marketing consultancy firm Translation Consulting. Translation Consulting, which focuses on brand planning and strategic consulting with clients looking to engage with the urban and youth markets, will continue to be led by Stoute and will remain a separate entity from Translation Advertising. Stoute and Interpublic management will jointly oversee the hiring of a senior management team for Translation Advertising, made up of marketing professionals from across the industry.
As a stand-alone agency, Translation Advertising will be accessible to and partner with Interpublic's leading network of full-service agencies. The new company will focus on creating advertising programs for clients, including television, print and radio, which are aimed at African American and culturally-blended consumers. As the agency grows, it will seek to partner with sister IPG companies to deliver specialty marketing services, such as special events and activation.
"We saw a place in the market for a new agency. The current fashion and standing that African Americans hold in the world today - especially in American culture - isn't fully represented in the advertising community," commented Mr. Stoute. "We want to show this community in advertising that's fresh, accurate and perfectly executed. And we're excited to be doing it with a great partner like Interpublic, which has such deep relationships with the world's greatest marketers. Our plans for this new agency have been repeatedly speculated at in recent press reports. As a result, we're announcing Translation Advertising a little earlier than anticipated."
"Translation Advertising is a new and exciting venture," said Mr. Carter. "Interpublic shares a vision of representing and connecting with the African-American culture and community in an honest and responsible way. This partnership with Interpublic and Translation Advertising is a natural business pairing. I look forward to sharing ideas and breaking new ground once again in a new area. We are not looking to just have an agency, we are looking to perfect our relationship with the consumer."
"A priority at Interpublic has been to create a forward-looking strategy to reach a mix of evolving consumer segments. Translation Advertising is an important piece in this comprehensive approach to the changing market. The African American community is a crucial element of the population for our clients, and Translation Advertising gives us a strong partner to connect with that market," commented Michael Roth, Chairman and CEO of Interpublic. "What's more, Translation Advertising allows us to address this key market by leveraging our new relationship with Steve, instead of pursuing additional acquisitions. Having Steve and Shawn on board in this venture creates a strong and highly-visible team. They are both tremendous businessmen, with great insight and experience into connecting brands with consumers for many of the world's biggest clients."
Interpublic is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. For more information, please visit www.interpublic.com.
CONTACT: Interpublic Group
Philippe Krakowsky, 212-704-1328
Jerry Leshne, 212-704-1439
SOURCE: Interpublic Group