The Drum unpicks what happened behind the scenes and what it means for the future of dedicated agency models as Ford splinters its advertising business after a long marriage with WPP in favour of a “multi-agency” proposition.
Since April, a $4bn cloud has loomed big over WPP’s Global Team Blue (GTB), the bespoke agency developed to service the worldwide Ford marketing account. Despite efforts to persuade the carmaker it had been nevertheless the very best (and just) team to take care of innovative, after a review that is six-month Omnicom’s BBDO has been called lead agency with Wieden+Kennedy assigned as a development partner to special tasks.
Standing at years old, the relationship that is creative Ford and WPP was indeed an enduring rarity in marketing.
It began with JWT 75 years back in 1943 (before it had been acquired by WPP in 1987) even though it will probably carry on in certain type – with WPP keeping activation and news (that was never up for review) in addition to other items of business – BBDO’s visit as imaginative agency of record agency is without a doubt a blow towards the GTB one-agency model.
GTB ended up being created in 2006 aided by the integration of five WPP agencies, including JWT, Ogilvy, Mindshare, Y&R and Wunderman, to operate clearly in the Ford account beneath the name ‘Team Detroit’.
Simply 2 yrs ago, WPP chose to gather Team Detroit, Blue Hive (the agency that is bespoke managed Ford’s European through-the-line business) and Retail First (another US Ford agency) underneath the solitary GTB product. It really is headquartered when you look at the shadow of Ford’s business campus in Dearborn, Michigan.
The agency employs more than 3,000 individuals, across six continents in 84 markets and, though it really works with a few other consumers, Ford had been its biggest by some amount.
What the results are to the vast wide range of staffers in light associated with brand new model is maybe maybe not yet understood. It really is grasped that recruitment and skill have been stable although the review ended up being ongoing (a cursory look into its LinkedIn page shows it had been nevertheless hiring). During the time of composing The Drum ended up being waiting for remark from WPP in what the end result regarding the review opportinity for workers.
In an early on declaration, WPP stated it might “work closely with Ford from the model of its relationship that is future and affect its individuals”.
Losing the imaginative spark?
The Drum knows cracks was indeed developing behind the scenes for many time prior to the review.
Chief executive Mark study utilized his very very first investors call after succeeding Sir Martin Sorrell to downplay issues from analysts about competitor W+K being called upon by Ford to supply a fall campaign for the usa market (the automobile maker’s market that is biggest where it is calculated to blow $2bn per year on ads).
In its RFP, it had been reported Ford particularly called on GTB to handle its “culture” which professionals didn’t think was conducive to creating world-class imaginative.
The Drum knows tries to wthhold the entirety associated with the company had seen WPP pitch an even more source that is‘open solution that could have offered the brand name usage of greater resources in the wider WPP system, not merely GTB.
Nevertheless, talking to The Drum ahead of the review concluded, a recently-departed staffer that is ex-senior tensions address was indeed bubbling over whatever they referred to as the “mechanical, dictatorial, clinical in the event that you like” method Ford’s advertising group (AKA the “Fordies”) dictated GTB’s procedures.
“The relationship between Ford and GTB had been an arranged marriage,” they included. “Two groups of individuals come up with and obligated to get on.”
The previous GTB-er proceeded to allege the “entire focus of GTB” is creating work that may cope with the “convoluted procedure that existed between GTB and Ford”.
“Many of the greatest some ideas never also reached the senior Ford dudes, these were killed in early stages, frequently because of the agency it self, because ‘Ford will never buy/do that, they truly are too that is conservative ‘the concept is simply too risky’. The procedure ended up being extremely irritating.”
GTB additionally suffered the exit of long-time global chief imaginative officer Toby Barlow in February 2017 while John Gray, its manager of platforms and partnerships, also left for Pinterest in 2017 after eight years.
GTB and WPP spokespeople will never discuss claims created by the previous staffer. Ford merely stated it “valued the skilled group at WPP” when expected week that is last.
In a declaration announcing the go on to BBDO, Ford marketer Joy Falotico stated it absolutely was “excited to partner with world-class imaginative agencies to unlock the entire potential for the Blue that is iconic Oval”.
In accordance with Ford, WPP remains a “key part” of a“multi-agency team” that is new. Along side news and activation, it’s going to retain shopper and gratification advertising; CRM; all advertising for the Lincoln line; Asia ad operations using its joint location partner and multicultural and Tier Two dealer marketing.
Ford’s reformed roster is anticipated to save it $150m per-year – with efficiencies additionally being gleaned from buying 100 new in-house advertising roles across branding, electronic labs and news partnerships.
Prior to the review’s result, Tom Denford, primary strategy officer at media consultancy ID Comms (which had no link with the pitch), said that – outwith cost – there is “no genuine compelling explanation” for contemporary brands to place all their innovative work in to a group that is single.
“It’s maybe not frequently mentioned publicly since it’s a whole lot more interesting to pitch it to be about ‘integrated reasoning’ and ‘more control in management’, or even the capacity to attract the very best skill through aggregated scale but actually these form of models really are a commercial idea,” said Denford.
“One associated with items that’s really changing is advertisers are actually thinking imagination is indeed crucial as well as the danger of working together with giant big agencies is the fact that it becomes a bit of a factory process – you lose the imaginative touch… great, or transformative innovative, is produced by a completely tiny, concentrated agency; its not necessary the scale of an Ogilvy to do that.”