Sources inform "Globes" that IDB, a Giladi Europe group company, has signed an MOU with international advertising firm McCann-Erickson for cooperation in advertisement production in Eastern Europe. Under the agreement, Giladi Europe will produce McCann-Erickson's advertisements for Eastern Europe, using leading international advertising directors.
Giladi Europe has exclusive agreements with international advertising directors for Eastern Europe. The MOU will enable McCann Erickson to use their services.
McCann-Erickson will spend an estimated $100-150 million annually on advertising production in the coming years.
The Eastern European TV advertising market is still in its infancy. Most advertisements are either local adaptations of international advertisements or low-budget local productions. The market is developing, however, and it can be assumed that international firms will begin producing advertisements there within a few years.
Aviv Giladi declined to respond to the report. Giladi Europe is owned by Aviv Giladi and the IDB concern, and McCann-Erickson is owned by the Interpublic Group (NYSE: IPG).
Published by Globes [online] - www.globes.co.il - on June 13, 2002