WPP to merge MediaCom and Essence
The group is also merging Finecast, Xaxis and GroupM Services into a cross-channel performance platform
WPP’s GroupM is all set to merge MediaCom and Essence. The merged entity will be rebranded as EssenceMediacom.
Nick Lawson, the global CEO of MediaCom will head the combined entity. Kyoko Matsushita, the global CEO, will be promoted to a new role as WPP’s CEO in Japan. Kyoko will be responsible for WPP’s business in Japan. She is currently Chief Executive Officer for Essence Global, WPP’s global data and measurement-driven full-service media agency, with 23 offices in 12 countries.
The two agencies work on several big accounts like Google, NBCUniversal and Mars.
Media reports claim that the rollout will begin in 2023 with a focus on major markets first. In the UK, however, the two agencies will continue to operate separately for a period of time due to client conflicts.
As per the reports, Essence and MediaCom would fuse the digital and data-driven DNA of Essence with MediaCom’s scaled multichannel audience planning and strategic media expertise.
Explaining the merger, global CEO of Group M Christian Juhl reportedly said the “simplification” drive across the media division, which employs 42,000 and manages ver $50 billion of billings, was about driving growth and not cutting costs or jobs.
“This isn’t any kind of exercise in trying to create synergies on the cost side, it’s really about creating synergies for growth and opportunities for our clients going forward,” Juhl was quoted as saying by one of the reports.
Juhl reportedly highlighted that the merger would offer clients a one-stop shop that married Essence’s digital creative technology and data driven performance with MediaCom’s global scale, media planning and brand-building capabilities.
With the merger, GroupM will now have three flagship agencies—EssenceMediacom, Mindshare and Wavemaker.
Group M is also merging Finecast, Xaxis and GroupM Services into a cross-channel performance platform. The platform will be called Group M Nexus. The agency will be led by Nicolas Bidon, who was previously the global CEO of Xaxis.
