The mergers will save money by lowering the number of back-office functions.
WPP's media business, GroupM, recently announced the merger of two sets of its media agency brands along with a consolidation of many mainly other programmatic firms. As a result of the latest consolidation, the number of its brand names and operating divisions will be reduced even more. The mergers are aimed at streamlining the workings of the group to address growing client priorities.
Other mergers inside the group include digitally-leaning Google speciality shop Essence consolidating with Mediacom to form EssenceMediacom. Additionally, erstwhile Ogilvy digital and performance subsidiary Neo will be merged with Mindshare. WPP will also rebrand programmatic firms like Xaxis, Finecast, and other centralised "activation" units known as GroupM services GroupM Nexus, managed by Xaxis CEO Nicolas Bidon.
A high-ranking WPP executive said, "Merging Mediacom and Essence creates very complementary capabilities in the same way that putting Neo fully into Mindshare creates complementary capabilities." GroupM CEO Christian Juhl is known to be technology-driven and was touted by an employee of the group as revolutionising "our old stodgy media business."
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