The new agency will employ approximately 6,000 people and continue working with current clients like Procter & Gamble, Kellogg Co, Netflix, Nike, and The Coca-Cola Co. This will be WPP's third, digitally-focused merger since CEO Mark Read took the helm in 2018—in September that year, creative agency J. Walter Thompson digital agency Wunderman; just two months later, Young & Rubicam merged with digital agency VML.
. Many ad giants originally built out or acquired agencies that specialized in digital to enhance their creative offerings, but keeping these operations separate has become less efficient as consumer habits and advertising move toward digital. So consolidating digital and creative teams has been seen as a way to simplify operations and create an overall better client experience.
Advertising holding companies are facing substantial financial pressure, likely pushing these streamlining decisions to the forefront. The companies have had to confront smaller client budgets, leading to layoffs and other cost-cutting measures., an estimated 52,000 US agency jobs may be lost by the end of 2021.
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