Finally, WPP gets scary
Sixteen months ago, I wrote an opinion piece asking why nobody feared WPP’s media agencies.
Fair to say that things have changed. Friday’s Unilever victory by Mindshare (worth $45m if you believe Nielsen, $80m according to B&T, $85m by the SMH’s calculations and $100m in AFR dollars) seals the deal.
It may well be the biggest single piece of media business that changes hands all year.
It also marks an extraordinarily fast start for CEO James Greet, who only took the helm in June last year after a stint working in recruitment.
And it’s a very quick answer for those who questioned whether he’d be able to replicate his previous turnaround job on OMD.
When people asked why Greet didn’t have more of an immediate profile, Mediacom’s Toby Jenner was a good example. He was made CEO in 2009, but it was about nine months before the agency began to publicly make progress.
Indeed, Mindshare and Mediacom’s improved fortunes are only part of the evidence that the wider group of WPP media agencies is back on course.
Mediacom was deservedly shortlisted for B&T’s media agency of 2010. It would have probably challenged winner Ikon – itself WPP-aligned through its ownership by STW – even harder, if momentum for only the second half of the year had been taken into account. Both agencies are among those doing battle for AdNews’ media agency of the year later this month.
Behind the scenes, we’ve also seen the return of former Asia Pacific CEO John Steedman to the new role of Australian chairman of the Group M agencies.
It’s possible to see Steady’s hand behind moves to address issues at Maxus Melbourne which saw the sudden departure of chairman Ron Bartlett and MD Richard Smith late last year.
Still – mostly – below the radar is Mediaedge CIA, although the agency has already been investing in senior talent including chief innovation officer Tim Knight and restructuring and chief strategy officer James Hier.
And WPP is also taking something of a lead across the industry. Steedy is a driving force behind the plan revealed by the SMH on Friday to invest up to $10m in creating an automated trading platform.
The initiative addresses the growth in the number of media buying points – and the difficulties for all media agencies in staying on top of the booking mechanisms. (It was a situation embarrassingly showcased for Mediaedge when a memo to sales reps cancelling meetings was leaked to Mumbrella.)
But back to 16 months ago. Back then, I wrote: “Nobody seems to quite be frightened of WPP’s Group M media agencies. As far as I can tell, people don’t groan slightly when they find themselves up against them on a pitch list – certainly not in the same way they do when they’re up against Mitchells.”
That’s not true any more.
Indeed, the Australian media agency scene is now the most competitive and, for a journalist, interesting I can remember. Last year:
- We saw the rise of PHD – the third agency with Ikon and Mediacom on both the B&T Awards and AdNews media agency of the year shortlists.
- Then there was the appointment of Mat Baxter – possibly the industry’s most interesting character – to head UM.
- And of course the purchase of Mitchell Communications Group by Aegis Media, which will create an even bigger buying block headed by Harold Mitchell and perhaps some sort of progress in the market for Carat.
We’ve also seen nearly all of the big agencies investing heavily in talented strategy people – suggesting that this is a skill that clients are finally willing to pay for. It feels like the bad old days of media-planning-by-buying-power and negotiating muscle are finally over, which comes as something of a relief. I suspect we’re going to see some innovative planning across the board.
But of course, not everything is rosy for WPP in Australia. Some of the WPP PR agencies have a way to go and on the advertising side Grey is quiet and GPY&R Brands – despite the best efforts of some good people – appear to still be in the doldrums.
But WPP has shown it is capable of turning its agencies around in this market when it puts its mind to it.
If any competitor claims not to fear the Group M agencies now, they’ll be lying.
Tim Burrowes
WPP has always been scary… To work for
User ID not verified.
I was thinking the same thing… WPP is a hearless animal internally and it is, indeed, a bit scary to work for… local office, fine, regionally or globally? Aaarrrggghhh!
User ID not verified.
“But of course, not everything is rosy for WPP in Australia. Some of the WPP PR agencies have a way to go”
Care to elaborate on that one Tim?
User ID not verified.
Hi The Internetz,
I started to write about WPP’s PR and advertising interests in Australia- then realised it would potentially double the length of the post. But I will do so at some point shortly.
Cheers,
Tim – Mumbrella
Toby’s collars have ALWAYS been scary – move over Ming the Merciless!
User ID not verified.
It’s scary in a ‘omg I can’t believe you actually get business done’ way. Once you’ve been inside you start dropping the breadcumbs so you can find your way out again.
User ID not verified.
@Halloween: I work for WPP and can say it’s a great place to work.
So think about this. If I were a competitor, why would I say this? And if I did work at WPP and didn’t believe this, why would I post it? Think about that Halloween.
User ID not verified.
@Totes McGotes
Well one reason may be because you’re a senior manager there and don’t want people in the industry to think it’s a bad place to work, as this will make it difficult to attract talent… think about that
User ID not verified.
@Ummm
Once again, a complete assumption which I can 100% honestly say is 100% wrong. I’m rather junior. Can’t help it that I’m a positive fellow that knows that everything is what you make of is.
Shall we continue the thinking?
User ID not verified.
A lot has to do with the influence of John Steedman at GroupM. I think without him, and the good hires made at all levels by the media agencies there, it would still be in the doldrums. Only question is: what the hell will happen when he retires?
User ID not verified.
Imagine combining Jenners Collars with Greets Head – now that’s really, really scary!
User ID not verified.