VML: Merged as one, but twice as good?

In the ad world, mergers are a way of life. But when WPP on Tuesday announced that two of its major creative agencies Wunderman Thompson and VMLY&R, both products of historic WPP mergers, will now be VML, it did come as a shock.

According to CEO Chief Executive Mark Read, the merger is another important step in simplifying WPP and its offerings to clients. WPP needed to evolve more as the marketing landscape has continued to shift, especially as the industry braces for what artificial intelligence will bring, Read said.

While the idea behind every merger is to bring in more efficiency, navigating the maze of mergers can be tricky given the fact that the agencies coming together are brands on their own, with different cultures, working styles, missions, visions, and unique selling points (USPs).

Admen world over had mixed reactions to the news. Most have bemoaned the sudden death of J Walter Thompson, which has had a storied history in India. The integrated communications company has crafted some of the most iconic ad campaigns and brags about bringing home India’s very first Grand Prix.

Old-timers speak wistfully of Hindustan Thompson Associates (HTA)/JWT, which was once the Mecca of Indian advertising and hallowed ground for anyone who wanted to learn the ropes of the industry.

There are concerns and catastrophisation aplenty while talking about the merger. Some point to the poor success rates of such exercises, serving to benefit only the finance guys. Others speak of the loss of culture and dashing of aspirations when an agency vanishes overnight.

Yet, despite industry watchers eulogising the so-called demise of these formidable giants, WPP seemingly has a game plan rooted in growth and efficiency.

The newly forged agency will be 30,000-strong, spread across 64 markets, becoming an advertising behemoth and the biggest creative company in the world, as per WPP.
If there's one thing that 2023 has heralded, it's the coming of AI. The merger will allow all their technological offerings, especially AI tech, to be consolidated in one place. Marcomm technologies of both agencies will give the newly formed VML an edge against competition with a suite of services.

The two also merge their individual strengths. Wunderman Thompson brings to the table its expertise in advertising and VMLY&R its superior customer experience and world-class commerce. These complementary attributes help forge an entity that is a force to be reckoned with.

Clearly, the rationale behind VML's establishment doesn't seem like a Himalayan blunder as it's made out to be. The merger is a sign of changing times and willingness on WPP's part to adapt to these changes. If anything, it showcases the agility of the industry and heralds an exciting time for the advertising world.

VML is proof that WPP keeping pace with the evolving needs of the industry. If it doesn't, even the most creatively awarded advertising conglomerate in the world can be left behind and become yesterday's news. With that thought, godspeed VML!