Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
Will WPP Step Out of Cannes?
It was the usual hectic week at Cannes last week with celebrity guests from Usher to John Cena to Ban Ki Moon. But the big talking point came after the awards, with WPP’s Sir Martin Sorrell threatening to ‘re-consider’ their involvement. We wonder if this is a master negotiation move, or a realistic sense that the ROI is hard to measure. WPP have previously boycotted the Asia Pacific Agency of the Year Awards, so anything is possible. Cannes event owners, Ascential, generated over US$60m in revenue last year, and with 45,000 entries in 2016, are expected to expand on this.
AlmapBBDO took top individual agency honors, despite a scam controversy. Droga5 won the Independent Agency of the Year for the second year in a row, while Ogilvy took the top award for Network of the Year and WPP won Holding Company of the Year. You can see the full list of Grand Prix winners here.
PHD Skyrockets up the Global New Business League Table
The biggest winner in our latest round of tracking global media agency new business wins (and losses) is PHD. They jumped from the no. 6 spot to no. 1 on the global table off the back of their recent Volkswagen Global win, while also moving up several spots in almost every regional table as well.
To see all the global, regional and local tables, click here.
Focus Shifts Away From the Big Agency Brand
In recent years, the industry has seen the rise of dedicated group-wide client teams. Brands including Cathay Pacific and Colgate are famous examples, and most recently J&J consolidated its global media account into UM's J3, a dedicated group that IPG created in 2007 for the health and skincare company.
The shift suggests that these dedicated teams are achieving the desired result, but it also could hint a move away from the individual agency brand. Has the time come to phase out or de-emphasize the big agency names?
R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.
Through our regular "AgencyScope" research, now covering more than 1,000 marketers in China, India and other markets, we are learning about true client preferences for the best local agencies in each market and helping agency holding groups form strategic partnerships with the best local agencies.