‘There must be a better way’, states the copy.
In Asia at least, Wunderman will be hoping it has found just that through its acquisition of digital darlings Agenda.
Make no mistake, the deal represents a coup for an agency that has struggled mightily in recent years. Judging by the despairing reactions from several agency chiefs, both within WPP and without, Wunderman has walked away with perhaps the most highly-rated digital prize of them all, even if it came with a reported price tag of almost US$20 million.
In Asia at least, Wunderman will be hoping it has found just that through its acquisition of digital darlings Agenda.
Make no mistake, the deal represents a coup for an agency that has struggled mightily in recent years. Judging by the despairing reactions from several agency chiefs, both within WPP and without, Wunderman has walked away with perhaps the most highly-rated digital prize of them all, even if it came with a reported price tag of almost US$20 million.
For Wunderman, the benefits of the deal are not difficult to fathom. The agency has struggled to maintain a façade of stability, going through at least four regional chiefs in recent years, and shedding talent in several markets.
Given Wunderman’s reputation in the early years of this millennium, when it was often viewed as the only network to genuinely rival OgilvyOne, the fall from grace is quite startling. The agency’s core strengths may have played a part. While OgilvyOne has been able to cast itself as a digital creative powerhouse, Wunderman remains better known for its data and CRM expertise. Wunderman global CEO Daniel Morel has maintained all along that his agency’s Asian revival will come from acquisition. Now, he has his chance to prove it.
“The main challenges we have had are retaining staff and talent,” admits Wunderman regional EVP Stephane Faggianelli (pictured), who has headed the network for the past two years, “which explains why we are reorganising.”
This rebuild is proceeding along very similar lines to the path taken by Wunderman’s highly-successful American and European outfits.
“Our roots are in sales promotion, but the request we have from clients is how to establish a stronger relationship with consumers” says Faggianelli. “So, we have to establish a stronger presence in digital and digital CRM.”
By “clients”, Faggianelli is referring strictly to Wunderman’s global accounts, which lean heavily on Microsoft and Ford in Asia. After losing serious business from IBM and Citibank, the approach may look a little risky, but it is clear that the agency is banking on growth to come by better servicing of its global client roster. “We still don’t pitch,” explains Faggianelli. “We want to have strong local teams and knowledge, but in terms of workload and priorities, we have to start with global clients.”
A senior ex-Wunderman executive points out the agency’s strategy makes sense, given the relative ease of managing global clients across multiple markets, compared to slogging for local business. And, from a geographical perspective, Agenda looks like a good fit - strong in China, Hong Kong, Taiwan and Malaysia, precisely where Wunderman is weakest.
Faggianelli admits that Korea and Singapore still require more digital heft “fast”, and WPP is clearly prepared to spend to try and return Wunderman to a position of relevance in Asia.
Which means that all eyes will be on how the Agenda infusion works post-acquisition. “My biggest worry is how the integration is going to happen, because the Agenda guys need to earn their pay packet,” says the source. “They need to keep doing what they were doing, but they also need to support the Agenda clients.
“Priorities will have to be decided. Am I going to go after my earn-out or integrate into the network? And the Agenda people are strong and individualistic. It could go either way.”
