WPP is merging the specialist data units of GroupM and Wunderman Thompson to form a new global data consultancy called Choreograph. The holding company said the new entity is designed to provide data advisory services focusing on strategy, implementation and privacy issues as well as optimizing first-party databases.
The world’s biggest advertising company WPP has pulled its dividend and share buyback and withdrawn its 2020 guidance after the coronavirus pandemic sparked the most uncertain time in its 35-year history.
WPP said Christian Juhl, who currently leads GroupM’s ad buying agency Essence, will assume the new role on Oct. 1. GroupM buys tens of billions of dollars of commercial space on behalf of advertisers. One of Juhl’s biggest remits will be to evolve the company’s partnerships with ad and tech vendors.
The Department of Justice has informed five ad holding companies that it is no longer investigating any of their subsidiaries as part of a probe into commercial production practices and possible bid-rigging that began in 2016. Interpublic Group, Omnicom, Publicis Groupe, WPP and MDC Partners all confirmed the DOJ has notified them that the investigation has concluded with regard to any and all of their respective entities. No action has been taken against the firms or their employees.
On today’s earnings call, WPP CEO Mark Read acknowledged the company had a difficult quarter thanks to a string of major media account losses and underperformance on the creative side of the business. He confirmed widespread speculation that WPP would seek to sell a majority of data company Kantar, which has grown more slowly than other WPP businesses in recent years.
Sorrell, who built WPP into a global brand during his 33 years at the helm, had been accused of misusing company assets. He has denied any wrongdoing. Sorrell resigned Saturday night as WPP announced that an investigation into the matter had concluded, with the firm saying only that “the allegation did not involve amounts that are material.”
Exclusives
WPP , the world’s biggest advertising company, is investigating an allegation of personal misconduct against Chief Executive Martin Sorrell who has denied wrongdoing.
WPP has merged two of its PR giants — Burson-Marsteller and Cohn & Wolfe. WPP says the combined agency is one of the world’s largest PR networks, with expertise in digital and integrated communications, across all industry sectors.
As consumer packaged goods companies cut advertising spending, WPP said it expected net sales for the year would be flat to up 1%.
All four of the major holding companies — WPP, Interpublic, Omnicom and Publicis Groupe — have now acknowledged that subsidiaries within their respective folds have been subpoenaed by the U.S. Department of Justice in connection with its ongoing inquiry into commercial production practices.
Japanese ad giant Dentsu ‘s aggressive buying spree shows no signs of slowing down. According to a new report from corporate finance advisory firm Ciesco, Dentsu and larger rival WPP were the most active acquirers in the digital, media, marketing and technology sectors in the first six months of 2015.
Automated Spot Buying Looming On Horizon
Automated, or programmatic, systems allow agencies to purchase advertising directly online, either eliminating sales people or limiting their role. In some instances, the systems involve an auction with buyers bidding for time. Such systems are commonplace in digital media, but they had far less success in the broadcast spot market. Now, however, some station groups are seeing the possibilities. This is Part II of a four-part series. Part I on what TV stations are doing to integrate digital ad selling into their sales processes appeared Tuesday; Part III, on Thursday, will focus on improving digital sales operations; and Part IV, on Friday, will offer a case study of a successful digital sales effort and the lessons it offers for broadcasters and newspapers alike.
It has set up Team Detroit, Team Mazda, Team Lincoln, and teams for MillerCoors and Bank of America. And now, WPP is adding one more to that list: a team dedicated to longstanding client Colgate-Palmolive.The unit, which will merge account teams at Y&R, Wunderman, VML, MEC and GHG will be called Red Fuse Communications.
In a statement, Martin Sorrell, CEO for the world’s biggest advertising holding company, said revenue excluding the impact of acquisitions and currency fluctuations will grow “close to 3.5%” this year, down from an earlier forecast of 4%.
WPP: Advertisers Cautious, Stick To Budgets
While advertisers are sticking to their 2011 budgets, for now, WPP CEO Sir Martin Sorrell told a crowd of investors and analysts in New York Wednesday afternoon that “the watchword is caution.” The general mood among consumers and business leaders, he said, is “uniformly gloomy.” In part, he said, the gloom is a reaction to all the press accounts and analyst reports about how shaky the economy is.
