Essence, MediaCom Merge, WPP Launches 9,000-Large Tech Group

The next wave of consolidation at WPP is underway with three planned mergers announced today. GroupM media agencies Essence and MediaCom will go to market next year as the single entity EssenceMediaCom. Additionally, Mindshare will merge with the global performance agency Neo to expand its service offering and GroupM Services will merge with Xaxis and Finecast and form a new entity called GroupM Nexus. The moves follow WPP's data and technology company Choreograph's April 2021 launch and are part of WPP's ongoing strategy to simplify its operations as it aims to infuse technology across its agencies' offerings. It began with cross-agency collaboration More media agencies are combining forces to service large clients, and GroupM agencies are no exception. Essence and MediaCom have already combined to service clients Google, Mars and NBCUniversal, and the merger will be an expansion of that operating model. "Our long-term partnership with Essence, complemented by MediaCom, is helping us deliver on our ambitious marketing goals. The combination of smart insights, analytical rigor and expansive creative thinking, scaled around the world, has been unlocking new opportunities and delivering stronger impact; we're excited about this next step forward in our work together," said Joshua Spanier, vp, marketing at Google, in a statement. The merger follows an onslaught of growth for MediaCom, which earned the most new business wins in 2021, according to COMvergence. The combined entity will launch in 2023 with 10,000 employees across 125 offices and Nick Lawson, MediaCom's current global CEO, will lead EssenceMediaCom. “We are passionate about the opportunity technology gives us to help our clients navigate constant change and achieve their growth goals. The future of marketing is outcome-driven, supported by audience-first planning and continually improving, AI-enabled performance standards. Through GroupM Nexus and our agency powerhouses Mindshare, Wavemaker and EssenceMediacom we are building a tech-enabled future side by side with our clients that is accountable to advertisers’ growth goals and to our vision for an advertising ecosystem that works for everyone," said Christian Juhl, global CEO, GroupM, in a statement. WPP's new tech hub GroupM Nexus, a new group within WPP's GroupM, will become a tech powerhouse that will activate over 2 million GroupM campaigns each year. It will become the company's digital arm and unite GroupM addressable content and TV, AI technology and omnichannel solutions from Finecast, Xaxis and GroupM Services. The group plans to create a cross-channel performance platform built on AI and supported by 9,000 GroupM Nexus employees serving all markets. The move infuses tech at GroupM's center and builds on the industry-wide focus on agencies developing advanced tech offerings. Luis Di Como, executive vice president global media at Unilever, a GroupM client, said in a statement that Unilever is encouraged by the change. “Digitization is changing how consumers live, play and shop and is therefore reshaping our industry at speed. The convergence of media, entertainment and commerce in digital environments is enabling us to build brands and convert to sales in the same place. But in order to provide consumers with an effortless end-to-end experience, as an industry we must utilize new skills and expertise and harness new ways of working," said Di Como in a statement. Nicolas Bidon, global CEO of Xaxis, will lead GroupM Nexus as global CEO. "GroupM Nexus unites leading media talent, digital services excellence, cutting-edge AI technology and unique scaled partnerships into a new cross-channel performance organization with one purpose: power growth for our people, our agencies and the amazing brands they represent. We cannot wait to innovate together and unlock new opportunities for everyone,” Bidon said in a statement. Mindshare adds Neo's performance expertise Mindshare and Neo will operate under the Mindshare brand, but will integrate Neo's performance solutions into Mindshare's offering. Neo's 1,200 employees specializing in performance marketing will join Mindshare's 10,000 media specialists. Adam Gerhart, global CEO, Mindshare, said: “This is a journey we’ve been on for the past year with many clients who have been demanding more diverse media services to drive their growth. The merger delivers seamless access to Neo’s digital-first capabilities and a relentless focus on performance models to accelerate Good Growth. For our teams it means more opportunity and the ability to create greater impact across the world. I’m delighted to partner with Neo CEO Nasreen Madhany as we complete the integration of the two businesses and move into a new future together.”

Merger & Acquisition News

Essence and MediaCom to Merge While WPP Launches a 9,000-Large Tech Group

GroupM Services will combine with Xaxis and Finecast to become the new entity GroupM Nexus

It began with cross-agency collaboration

Olivia Morley

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Olivia Morley