Advertising At Risk From the `Millennium Bug'.

LOS ANGELES--(BUSINESS WIRE)--June 22, 1998--

Western International Media Urges Industry to Get Serious About the Year 2000; Calls for Agencies, Stations and Publications to Work Together on a Solution

Commercials that don't run, commercials that run at the wrong time, bills that total 99 years worth of expenses -- these are just some of the potential nightmare scenarios that might become reality if the advertising business does not address the threat posed by the notorious "millennium bug."

Industry efforts to deal with the programming glitch that could shut down much of the computerized world in the year 2000 have been slow to materialize, says Yvonne Fogelman, senior vice president, information technologies for Western International Media. And there's less time left than people think.

Although many ad agencies are working on safeguarding their own operations from the bug, few have considered the wider implications for an industry so interconnected with television stations, radio outlets, cable channels, newspapers, magazines and other media, as well as client computer operations.

"The industry doesn't appear to be taking as aggressive an approach as it should," cautioned Fogelman. "In fact, we're concerned that a lot of the smaller agencies haven't started to address the issue. The `Y2K' problem could harm the ad industry's ability to deliver and receive services -- the interdependencies are very complex and serious.

"For example, if we're making a media buy for a client that is launching a new product on Feb. 1, 2000, we need to have confidence that the ratings companies are operational and providing us with reliable data, that the subscription system we use to enter our buys is functioning properly, that the dubbing companies can dub and that the overnight services are flying.

"Most importantly, the stations need to be capable of airing the spots, and we don't have until Jan. 1, 2000 to figure all of that out. Media plans for advertising in the new century will be formulated as early as next summer, and financial forecasts for 2000 and beyond are already being written."

Because of the urgency of the problem, Western and its parent company, The Interpublic Group, have already consulted with agencies, stations and publications with which they do business to formulate a common front against the threat.

"In the media business, we are preoccupied with preparing for the challenges of a new millennium," added Michael E. Kassan, Western president and chief operating officer. "But if the industry doesn't unite behind a comprehensive plan to counter the Y2K threat, nothing else we do will matter. That's why I have instructed our team at Western to take the lead in galvanizing the industry to work in concert on the problem."

Western has completed an inventory of all of its proprietary systems, as well as those of its vendors and business partners. Understanding that 100% compliance is unlikely, the media management firm has developed a prioritized list by which problems will be addressed, ranging from operations "critical to the survival of the company" to those that are merely cosmetic.

Additionally, Western has created a computer operation that mirrors the company's production computer environment. Within this test environment, Western can run and test programs as if it were already the year 2000.

Western expects its Y2K strategy to be fully implemented and in compliance with millennium bug safeguards by early 1999.

With billings exceeding $5 billion and more than 40 offices in North America, Europe and Asia, Western International Media is among the largest and most diversified advertising media companies in the world. Its executive roster includes more than 40 former ad agency media directors and the company is a leader in the planning and buying of broadcast, cable, print and outdoor media.

Specialized units provide expertise in interactive media, Yellow Pages advertising, direct mail, direct response TV, promotions and incentive programs. Western's multicultural group and advocacy S COMED 

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