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Publicis Almost Got Outed By The Shaky Hands Of Michael Donovan
Ad data processor Donovan Data Systems and Publicis' Starcom Mediavest are going to war. CEO Michael Donovan (pictured below) runs one of Madison Avenue's biggest operating system for media buys. Publicis Groupe Media was a big client of Donovan's. In an attempt to keep the Starcom MediaVest unit as a client, Donovan flew to Chicago to make his bid to CEO Jack Klues.
It didn't go so well with Donovan calling out Klues on Starcom secrets. He even produced some sort of written evidence, which affidavits refer to as a "highly confidential document." You better believe Publicis wants to keep this under wraps as the document is supposedly a business plan of SMG'spotential joint venture and co-market a new data processing system that would be a tough competitor for Donovan. MediaBank has been making this new system. This is like Watergate, folks. These are plans, which Donovan should not have his hands on. It would put Publicis media unit at huge disadvantage if were leaked considering it contains the unit's finances. [Please! Someone leak it to us! We love the brawl. We want front row seats!] Publicis has spent the last 10 months trying to make sure it never sees the light of day.
Mediapost has this timeline of events:
DDS Vs. SMG Timeline
2000: Starcom shutters highly regarded, but expensive in-house data processing system, begins using DDS.
2004: SMG signs a three-year contract with DDS.
2005: SMG offers to renegotiate its contract with DDS trough 2007 and extend a new contract through 2012. Offer would form a "partnership" in which it would help develop a new, state-of-the-art digital media system in exchange for some preferential terms/treatment. DDS declines. SMG says it will pursue an alternative resource for its digital solution.
July 2006: DDS receives a call from MediaBank to make a presentation on its systems.
August 2006: DDS executive James Biskupic presents to MediaBank.
November 2006: Nancy Oppasser hired to work on project to design a new media data processing system for MediaBank. December 17, 2006: Oppasser expresses her ethical concerns about access to proprietary DDS information.
December 18, 2006: Oppasser is fired.
February 2007: Oppasser shares her concerns with DDS.
May 14, 2007: Michael Donovan flies to Chicago to meet with Publicis Media Group CEO Jack Klues and CFO Frank Voris. Shocks them by revealing "confidential" document.
June 2007: MediaBank acquires Datatech. SMG begins the process of transitioning from DDS to Datatech.
October 2007: SMG begins hiring "temporary help" to aid in the transition, claims more than $1 million in incremental, temporary labor costs to manage the process. Begins processing its media transactions on parallel systems: DDS and Datatech.
Dec. 20, 2007: Judge denies SMG's motion for a temporary restraining order that would require DDS to continue processing buys for SMG's clients.
Dec. 31, 2007: Donovan pulls plug on SMG systems (except for Canada, the U.K. and GM Planworks).
January 2007: Publicis Groupe Media Executive Director of Digital Development Nick Pahade leaves agency to join GSI Commerce after leading the team that developed the MediaBank system for SMG.
Feb. 15, 2008: Wall Street Journal breaks "Ad Heavyweights Battle Over Software" story.
March 5, 2008: DDS unveils iDesk, MediaBank pitches OX at American Association of Advertising Agencies' Media Conference and Trade Show in Orlando.
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