A WEEK AGO, multinational advertising and communications network WPP made the stunning announcement that it would merge Wunderman Thompson and VMLY&R to create a new agency, VML. The move is expected to make the newly formed VML the largest creative agency in the world with an estimated 30,000 employees across 64 markets. Both agencies interestingly were also the outcome of WPP mergers in 2018 - J. Walter Thompson and Wunderman were merged to form Wunderman Thompson, while VML and Y&R merged to become VMLY&R.
Industry veterans reacted with shock at WPP's decision to terminate the legacy Wunderman Thompson brand that has played an influential role in shaping the industry's growth since it entered the Indian market 94 years ago under the name Hindustan Thompson Associates.
Agnello Dias, former chief creative officer at JWT, says, "WPP's efforts are largely an exercise to reduce costs by bringing various functions under one roof where the overheads are shared. The restructuring has been going on for some years, but the effect of it is only being felt now." Sandeep Goyal, CMD at Rediffusion, points out that WPP's latest move reflects certain clear realities about the industry: "Creative agencies at current remuneration levels are unsustainable. So either clients have to pay more to receive quality services or global agencies will die.
This story is from the October 27, 2023 edition of Financial Express Mumbai.
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This story is from the October 27, 2023 edition of Financial Express Mumbai.
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