In a move designed to make new-business acquisition more efficient, Leo Burnett's direct/interactive sibling Arc Worldwide is being brought under the Burnett corporate umbrella. Burnett is careful not to label the move a merger, but CEO Tom Bernardin is quoted by AdAge as saying, "Consider Burnett and Arc as one entity, albeit with two facets." The move is a potential solution to Burnett's new-business woes, an area that's been a strength for Arc.

Since 2004, Burnett and Arc have worked together on only one U.S. business win, Diageo's TheBar.com, which was predominantly an Arc project that some Burnett account managers were involved with. "In the cases where they've worked together well, they've won," said Bernardin, referring to overseas efforts. "In the U.S. they've been structured separately and they haven't had as much success working together."

Though the partnership makes sense, it involves some risk, as the agencies' client rosters include potential conflicts of interest. But Bernardin explains that the agencies will work separately when necessary. "We are not merging the two companies - out of respect for our client bases…. We are extremely sensitive to that."