Tiger Beer has already signed up, with its £3 million media planning and buying business. The agency is also in talks with its Carphone Warehouse client and with Virgin Money about their respective media needs.
Virgin Money spends £6 million on UK media, but if Virgin's deal with Northern Rock goes ahead, Sir Richard Branson has said he will increase media spend to more than £50 million. Carphone Warehouse spends £16 million.
CHI is hiring a buying team for the venture, which is expected to be led by Mike Hellens, the managing director at Media Matters, Carphone Warehouse's media agency.
The business model will be fee- rather than commission-based, which the agency hopes will lead to a more media- neutral offering.
The agency will offer planning and buying, but the latter will be supported by systems and client expertise from WPP media agencies.
CHI was unavailable for comment.
This article was first published on Campaign