Ad holding companies are interesting partly because they combine a glossy exterior (most seasoned suits can get you a ticket to the Chelsea Flower show even if they don’t know a peony from a primrose) with the underlying panic of a business in which, as Sir Nigel Bogle famously remarked, you’re only three phone calls from disaster.
WPP has been rocking a little of late, partly thanks to two phone calls: one from Pfizer a couple of years ago which impacted its group results (as did a similar one to IPG, the business went to Publicis) and, more recently, from Coca-Cola whose media also went to you-know-who, fracturing WPP’s flagship full service account. The latter may well have been one of the prompts behind WPP’s decision to “simplify” GroupM and its agencies into WPP Media.
More recently it’s announced that Grey is to be divorced from AKQA and rolled into Ogilvy although WPP is emphatic that it will remain a standalone agency even though Ogilvy global CEO Devika Bulchandani (below) will now be in charge of the P&L account.
Bulchandani told staff thus:
I am writing to share an update on WPP’s reporting structure. Moving forward, Grey will now be aligned to Ogilvy, further enriching our global creative tapestry – a formidable network that weaves together diverse talent, skills, and specializations through Borderless Creativity to deliver unreasonable impact for our clients.
What does this mean? Importantly, Grey will remain a standalone agency brand that will continue independently serving its clients with the same dedication and expertise they’ve come to expect – just as our other specialized agency brands like DAVID, INGO, and New Commercial Arts (NCA) do alongside the breadth and depth of Ogilvy’s capabilities. Laura Maness, the Global CEO of Grey, will now report directly to me.
How will this impact our business? Laura and I will be working closely to find opportunities to deepen collaboration and drive growth for both Grey and the broader Ogilvy network. This includes exploring strategic opportunities where Ogilvy’s complementary capabilities – from Ogilvy One and Ogilvy Consulting to Ogilvy PR’s expertise at the intersection of earned, social, and influence – can add value to Grey’s clients, and vice versa.
Why make this change? While Grey retains its independence, this move allows us to leverage shared values and complementary strengths. At the heart of both agencies lies a shared commitment to using the exponential power of creativity to drive tangible business results and impact for our clients. Grey’s “Famously Effective” mantra aligns perfectly with David Ogilvy’s ethos of “We sell, or else.” By welcoming Grey into our network, we can further amplify this shared commitment within WPP and the broader industry. It also comes at a time when AKQA, under new leadership, has a renewed structure and vision – which allows both AKQA and Grey to focus on their core strengths.
I am confident that this move will strengthen both Grey and Ogilvy, allowing us to use our collective capabilities and deliver even more impactful solutions for our clients. Together, we will continue to redefine the boundaries of creativity and effectiveness in our industry.
I look forward to working closely with Laura and supporting the Grey team moving forward.
Some things are unsaid though. The forced marriage with AKQA has damaged both brands. Unlike David, INGO and NCA Grey isn’t a relatively recent creative invention it’s one of adland’s more venerable inhabitants, founded as Valenstein & Fatt back in 1917 and then renamed after the office wallpaper so it sounded less like a New York deli. What’s more, WPP coughed up $1.5bn to buy it in 2004. Old WPP hands are most critical of the current regime for merging agencies and, in their eyes, destroying brand value. Agencies, of course, are supposed to be good at the opposite. Presumably the $1.5bn has been written off in WPP’s accounts somewhere.
So, to put it kindly (which we occasionally do) WPP’s current reorganisation is a work in progress. All such plans, though, can be upended by events. As Mike Tyson said: “Everyone has a plan until they get punched in the face.”
Those client phone calls again.
The only real rationale for keeping the Grey brand is for Imperial Tobacco, seeing Ogilvy has spent years publically campaigning against tobacco, has the Ogilvy Health division, and is helping rival Philip Morris to flog vapes.