WPP to LEAPFROG Omnicom and Publicis with new plans. Here’s why.

Описание: 🐸 👉 WPP CEO Mark Read said at their recent annual general meeting that the dramatic ‘life changing’ surgery proposed by GroupM (their media buying arm) to consolidate more power into a single brand, kill off the GroupM brand, replace it with WPP Media (nope) and hobble the individual media agency brands, are in the name of providing a better quality client experience.

🤨 I follow the logic to make WPP’s media assets simpler to navigate, as we’ve been advocating for YEARS on #MediaSnack, GroupM itself has been creating some confusion for many advertisers still unsure exactly what role it plays; it is a holding company, a trading entity, a new business function, a negotiating super-power? Well, maybe all have been true depending on which of the many WPP media CEOs you ask...

🏦 Hence the need for simplicity and clarity. More likely is the need to show Wall Street that it can compete with Publicis and Omnicom and can even “leapfrog” them in performance. That’s what this serious surgery is leading to, it’s not tending to the symptoms, it’s cutting out the old WPP business model and replacing it with a new one.

😕 Advertisers meanwhile are concerned about increasing pressures to accept proprietary media from this consolidated agency power, worried about the loss of talent on their business (it’s very likely headcount numbers will continue to decline and be replaced by technology) and potential conflict situations with competing brands. 🥊

🤕💊It’s creating new headaches for advertisers in the short term. WPP hopes it will pay off in the coming years as their performance financially accelerates past the other agency groups.

⁉️What now?

👉 We encourage advertisers to prepare now for imminent renegotiation with agencies to reassert contract rights, transparency to audit , talent commitments and reassurances on the future service levels.

👉 Go to www.idcomms.com/omnicom to learn more about how agency consolidation has some risks and also benefits to advertisers who keep proactive and informed.