BBDO tops Ford's global review | News from the agency

In concluding a review of the world-leading creative agency, Ford selected BBDO as a global branding agency. But it will retain WPP for important parts of the business, including media planning and purchasing, customer marketing and CRM. WPP will also retain Ford's multicultural and "tier 2" advertising. Wieden & Kennedy joins the group as a creative and innovative partner for specific projects, according to Ford.

Ford will also strengthen its internal marketing with 100 global marketing positions related to brand design, media tools, technologies and partnerships, as well as digital labs and customer experience, the automaker announced.

As part of this review, Ford is targeting "annual efficiencies" of $ 150 million as part of what it describes as a "more agile marketing model".

"Ford is already one of the most recognized and respected brands in the world," said Joy Falotico, vice president of Ford Group and CMO, in a statement announcing the agency's choices. "At this crucial time of reinvention and transformation, we are excited to partner with world-class creative agencies to harness the full potential of the iconic Blue Oval."

"Today is a great day," BBDO President and CEO Andrew Robertson said in a statement. "We have a great new brand to help build – I could not be more proud of the hundreds of people around the world who have made this possible, nor more grateful to Ford for its trust in us."

Marketing consulting firm Flock Associates was the consultant in charge of the review.

This decision means that WPP and its new CEO, Mark Read, have avoided the worst scenario, that of losing everything that was under study. Nevertheless, it is difficult to describe Ford's decision as a setback for WPP, given the size of the account and the historical links between the two parties. Ford has continuously worked with WPP agencies since 1943, when he hired J. Walter Thompson. Ford remains today one of the largest WPP customers in terms of revenue. The portions of the account that WPP has retained may, however, result in significant revenue for the holding company.

WPP could not be contacted immediately for comment. Neal Arthur, general manager of W & K New York, said, "Working together to help build the future of Ford Motor Company is as big, as interesting and exciting as possible, they have the people, the brand and the the vision needed to lead the industry and we are honored to be able to play a role at this point in their history. "

The automaker is the seventh largest advertiser in the country, with a budget of 2.4 billion dollars in 2017, according to Ad Age Datacenter. Globally, Ford reported advertising costs of $ 4.1 billion in 2017. WPP manages the account through its dedicated Ford Group store called Global Team Blue, called GTB, which is headquartered nearby. Ford's offices in Dearborn, Michigan, and offices around the world, with approximately 3,000 people dedicated to this account. WPP also regularly calls on agencies outside GTB to work in the company. GTB takes care of media planning and Ford's purchases that have never been the subject of an examination.

Ford launched the creative magazine in April in the midst of a major campaign to cut costs and organizational change, including closing the North American sedan market to focus on SUVs, crossover vehicles and more popular trucks.

The automaker, whose stock price has fallen in recent months, is targeting cost reductions of $ 25.5 billion, half of which come from sales and marketing, including a reduction in advertising. Last week, Ford confirmed that it would remove an indeterminate number of its 70,000 employees. Total Ford brand sales fell 2.1% in the first nine months of the year, according to Automotive News.

Ford's activities in China, public affairs, US dealerships and Ford's luxury Lincoln brand, now parked at WPP's Hudson Rogue, have been excluded from the agency review from the start. According to Kantar Media data from Ad Age Datacenter, there was still a lot of work to be done in the United States, where Ford invested $ 893 million in measured media.

Over the years, Ford has entrusted WPP with so much of its marketing and advertising work that has severed its relationship with the holding company. There was a chance outside Ford could have gone this route, especially with Omnicom, which has the size and scale to replace WPP. This meant that Wieden & Kennedy was perceived as a "frenzy" within WPP, as the independent store never seemed to pose a threat to win the entire account. With BBDO now firmly in the account, it is possible that Omnicom will make more gains in the months and years to come, putting WPP on the defensive.

WPP has partnered with W & K on Ford for an American brand campaign to be launched in October. By the end of August, W & K had been appointed to lead the creation of the mission as part of a larger study. The campaign, which should be called "Ford Proud", will likely be presented at the Ford National Dealers meeting this month in Las Vegas.

The review put WPP in trouble, but the advantage lies in the fact that the holding company should be released from strict exclusivity rules requiring some of its larger agencies to obtain Ford approval to create other accounts in the automotive sector. This arrangement covered the WPP agencies and their affiliates that were part of Ford's multi-agency entity, Detroit Team, established in 2006, including JWT, Ogilvy Y & R, Wunderman and Mindshare.

WPP is already looking for the Volkswagen account, which has been undergoing an overall review of its creativity since April, which could eventually allow WPP to offset some of Ford's loss. According to knowledgeable people, WPP would be competing with Publicis Groupe for the North American VW market. Interpublic & # 39; s Deutsch, a historic VW player in the US, has already been informed of its intention to let him go.