Press Release 2004

Star Alliance media procurement deal signed

Star Alliance™, the airline network for Earth, signed a deal with GroupM (Mediaedge:cia and MindShare) which will dramatically lower media procurement costs for participating member airlines.

“While individual carrier savings will vary, annual savings across the alliance will total tens of millions of euro,” said Louise McKenven, Vice President - Loyalty & Marketing, Star Alliance.

As outlined in the framework agreement, GroupM will coordinate media procurement on behalf of participating carriers using their pooled requirements to generate volume discounts for buying advertising across all media. Eight Star Alliance member carriers (ANA, Austrian, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, United) are participating.

“The programme is very flexible: some carriers are planning to only test the waters with European pan-regional media involvement,” explained Mark Davies, Director - Marketing Communications for Star Alliance. “Some are focusing on media spend purely outside their home markets, whilst others are aiming for media savings on a global market scale.”

Davies said aside from savings, participating carriers will also benefit from a media “rewards” programme which will yield credits for additional services such as market research or competitor tracking.

“The GroupM brands co-operate to create marketplace advantage for our clients through the intelligent application of volume and scale, without compromising client confidentiality,” said Irwin Gotlieb, CEO, GroupM. “For example, budgets, pricing, programming, promotions, sponsorships and added value will remain confidential to the individual agency groups and clients.”

 “This is another example of how Star Alliance and its member carriers can take advantage of economies of scale to reduce costs,” said Jaan Albrecht, CEO, Star Alliance.

Star Alliance was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, Thai Airways International, United, US Airways and VARIG Brazilian Airlines.

About GroupM
The world’s largest full service media investment management operation, was created by WPP Group to oversee its assets in this sector. These assets include Mediaedge:cia Worldwide and MindShare Worldwide.  The focus of GroupM is the intelligent application of volume and scale to trading, innovation and quality of services, in order to bring benefits to clients and the companies it operates.  For further information, visit us at www.groupm.com

About WPP
WPP (NASDAQ: WPPGY) is one of the world's leading communications services groups, providing national, multinational and global clients with advertising; media investment management; information, insight & consultancy; public relations & public affairs; branding & identity,  healthcare and specialist communications. WPP's worldwide companies include J. Walter Thompson, Ogilvy & Mather Worldwide, Y&R Advertising, red cell, Bates Asia, MindShare, Mediaedge:cia, Millward Brown, Research International, Kantar Media Research, OgilvyOne Worldwide, Wunderman, 141 Worldwide, Hill & Knowlton, Ogilvy Public Relations Worldwide, Burson-Marsteller, Cohn & Wolfe, CommonHealth, Sudler & Hennessey, Healthworld, Enterprise IG, Landor and Fitch among others.

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