Wunderman-JWT merger: What’s with WPP’s latest consolidation move?

Industry insiders believe that such consolidations also keep in mind the struggles that are plaguing the agency business.

e4m by exchange4media Staff
Published: Nov 28, 2018 8:40 AM  | 4 min read
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WPP, this week, shook up the industry when it announced the merger of its creative agency J Walter Thompson with its direct marketing arm Wunderman. A move that will see the disappearance of one of industry’s most recognised creative agency names. The newly formed agency will be led by Mel Edwards, who is currently the Global CEO of Wunderman. Tamara Ingram, CEO of J. Walter Thompson, will become Chairman.

In response to exchange4media’s email, Tarun Rai, Chairman & Group CEO, J Walter Thompson South Asia, said, “It is an exciting development as it brings into our fold new and complimentary capabilities and makes Wunderman Thompson a formidable company. The details and logistics are being worked out and will be decided depending on the geography/region. The process will take a couple of months.”

Interestingly, in August, Forrester Research suggested that WPP should look to “dissolve its agency brands in order to meet the CMO’s need for simplicity, accountability, and scale,” thereby restructuring nearly 400 companies into just a few dozen units. It also called for WPP to consolidate its 100 creative agencies within the seven global networks of AKQA, Grey, JWT, Ogilvy, VML, Wunderman and Y&R.

Taking charge as the CEO of WPP, Mark Read had said that the media conglomerate will “simplify its offering” and “adopt much more of a common approach to things like technology, data and production.” The merger of two of WPP giants JWT with Wunderman follows the theme that Read set in early September. 

By the looks of it, in Read's WPP, the traditional creative agency is going to adopt a hybrid model that combines multiple capabilities with a strong digital, data science, and technology focus. Technology is becoming the indispensable centrepiece of the agency business. Upon his appointment, Read told WPP staffers in an internal email that “spirit of creativity will always be at the heart of what we do, but pairing that with expertise in technology and data is vital.”

In September, during an address to investors, Read had said that by the end of the year, WPP would look at the non-performing parts of the business in North America and restructure the business by the end of the year. He said, “We’ll address the non-performing parts of our business, primarily in North America, in the creative agencies within the data investment management part of the company as well as any restructuring costs that may be needed in the associated benefits with them.” 

With these few lines, Read set the stage for the mergers that followed -- JWT with Wunderman and VML with Y&R. The few months since Read became the CEO, WPP has seen widespread consolidation. Following the creation of VMLY&R, the new entity absorbed the Sudler network to form VMLY&R Health. In addition, Ogilvy CommonHealth joins Ogilvy to become Ogilvy Health and Ghg enters Wunderman to create Wunderman Health. In a similar move, Ogilvy underwent a consolidation earlier this year, breaking down silos in the agency. The transformation of Ogilvy is from a matrix-managed holding company of sub-brands to one brand represented by 12 crafts and six core capabilities along with a new operating system. 

The creative agency business has also come under immense pressure of shrinking margins. Industry insiders suspect that the move to integrate offerings also keeps in mind the business struggles that are plaguing the agency business. "While the entire industry is under presure, creative agencies are struggling most as their margins are low. Also, with the onset of so many new agencies in the market, legacy agencies are particularly feeling the heat. Newer agencies have younger and fresh talent that is ready to deliver at a much lesser cost puting the legacy agencies in a spot," said a senior industry person who did not wish to be quoted. 

According to another industry expert, the creative agencies need to reinvent themselves in the changing arena and that is what WPP is experimenting by way of the merger. "Everyone is under pressue. One of the biggest losses for JWT came when it lost Ford’s creative account to BBDO after over 75 years of servicing it. All relationships are under pressure and need review," expert added.  

In an interview recently, Mel Edwards reportedly said that the merger is “definitely not a cost-cutting exercise", with no job cuts planned as a result. And, as technology reshapes marketing, Wunderman Thompson will also capitalize on close and long-standing partnerships with Adobe, Amazon, Google, IBM, Microsoft, Salesforce and SAP. The merged entity is to employ approximately 20,000 people across 90 markets. 

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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