Loss for Bozell Will Result in Layoffs

By Published on .

Most Popular
NEW YORK ( -- In a move that can mean the end of its brand, online broker Datek is shifting its advertising business from its current agency to that of its soon-to-be parent, Ameritrade Holding Corp., according to an executives close to the situation.

Datek's agency is Interpublic Group of Cos.' Bozell, New York. Just last week, Bozell's print campaign for Datek won a Silver Lion at International Advertising Festival in Cannes.

WPP Group's Ogilvy & Mather, New York and Chicago, handles advertising for Ameritrade, Datek's onetime rival. The merger between the two brokerages is expected to close in August, an Ameritrade spokeswoman said.

Focus on Ameritrade brand
Calls to Datek were not returned by press time. Representatives for Ogilvy referred inquiries to Ameritrade, where a spokeswoman said that "plans for the merged company are to focus on the Ameritrade brand."

Layoffs are expected to hit Bozell following the Datek loss, along with overall reduced client spending. Approximately 15% of the agency's staff, or 65 of 430 employees, will be fired, according to an executive close to the agency. The cuts will affect all disciplines, from account management to creative.

In addition to handling print, TV and out-of-home elements for Datek since 2000, Bozell earlier this year picked up its interactive assignments as well.

In 2001, each company spent more than $50 million on advertising in measured media, according to Taylor Nelson Sofres' CMR. Datek doled out $53.3 million, while Ameritrade spent $57.7 million on advertising expenditures.