ChasNote

Rafat Ali at PaidContent on the slew of ad-agency investments in new-media start ups:

“But conflicts of interest are also there: IPG’s stake in Facebook will create new ad models for all kinds of clients but will IPG also have a quid pro quo vis-a-vis Facebook’s ad account? Isn’t it a wee bit strange too, that IPG-owned agencies count Microsoft as a client and Microsoft recently inked a deal with Facebook to be the exclusive provider of advertising to Facebook?
Will such arrangements mean some clients will steer clear of certain agencies due to competitive conflicts? While ad execs tell Adweek that the equity deals don’t involve preferential treatment, I don’t buy it. On MadAve, there’s always some sort of quid pro quo originating with the actual deal or spawned from handshake arrangements. It’s just another form of the two-martini lunch.”