Showing posts with label dentsu. Show all posts
Showing posts with label dentsu. Show all posts

Monday, July 20, 2026

17542: More On Farmers Insurance—A Tale Of Simplicity & Simpletons.

 

Advertising Age published additional content related to the newish Farmers Insurance campaign produced by Dentsu Creative and placed by Havas Media, presenting disturbing trends in Adland.

 

For starters, the new White advertising agency is essentially pooling out the concept originally hatched by the previous White advertising agency—and arguably doing so with less cleverness and creativity.

 

What’s more, the original campaign was allegedly conceived by a single freelancer and partner, while the newish campaign lists quite a few White men as creators.

 

The newish campaign is rooted in simplicity—yet its execution and delivery appear to be cumbersome, clumsy, and complicated.

 

RIP, Professor Burke—how the J.K. Simmons character made Farmers famous

By Tom Hamling

Helluva run.

The last time I saw J.K. Simmons was in 2013 and he was surrounded by a dozen stunt cats and a giant pile of fake snow. We had just wrapped up a scene about how putting kitty litter behind your tires is a great way to get your car unstuck after an ice storm. A ridiculous end to what had been a ridiculous run of probably 30 commercials we had shot together over the previous three years.

You see, in 2010 Farmers Insurance had a massive problem. They were totally invisible and being outspent ten to one. Not only that, every time they ran a commercial, more people attributed it to State Farm than to Farmers. I was freelancing at 72andSunny when the RPA recruiter called and asked if I could work on the Farmers pitch for a couple of weeks. I asked, “What’s Farmers?” They said, “It’s insurance.” I said, “Never heard of it.” They said, “That’s the problem.”

I took the gig, and my parter Laura Hauseman and I immediately got to work reading everything we could about this invisible billion-dollar brand.

Hidden deep in the research was an internal program, the University of Farmers, that the company used at its headquarters to train agents. It was an ownable point of differentiation. That was the answer. We knew it. By the end of the day, we had a strategic brand platform around “smart” and a campaign featuring a “tough but fair” insurance professor teaching a new crop of agents the ins and outs of smart coverage.

The campaign that won the pitch was literally written for J.K. Simmons.

I hung his picture above my desk and cranked out 100 scripts in his voice. I never thought he would say yes. That never happens. But he did … on the condition that this character had a name. Sidenote 1: His original name was Professor Aloysius Finch—later changed to Professor Nathaniel Burke after lots of back and forth with our awesome client John Ingersoll. Sidenote 2: Our backup choice was Academy Award winner Chris Cooper.

The first spot ever featured Professor Burke quizzing agents about a flaming jet ski caught 10 feet up in a tree. Other spots had Professor Burke manning an actual flame thrower, walking through scenes while being attacked by multiple dogs and standing in a subzero freezer holding an exact replica of the biggest hailstone in U.S. history.

Of course, when trying to transform a brand you need lots of distinct and ownable assets. Professor Burke was one of many. Every one of the spots opened with a distinct class-bell sound effect, a sign saying “University of Farmers” (shot on UCLA’s main quad) and of course the jingle that we wrote to sound like a glee club at a smart Ivy League college.

It worked immediately. In just a few months, agent quotes went up 30%. Brand linkage went from 15% to 77% despite still being enormously outspent.

This past Monday, my phone lit up like a Christmas tree. Texts from a lot of old and current friends that Professor Burke was done. Even though I had left three years into the campaign, Farmers and a slew of talented people at RPA did an amazing job keeping this baby running for 13 more. Almost unheard of in today’s day and age. Hats off.

As I was saying goodbye to J.K. around a craft service table surrounded by feral cats, we talked about how crazy the past couple of years had been. Almost overnight, Farmers went from being totally invisible to being a part of pop culture. The brand instantly became a question on “Jeopardy.” Diplo and Andy Milonakis made NSFW rap videos about it. Yes, the jingle was a big part of that. But so was J.K. And when he won his Oscar in 2014 for “Whiplash,” Neil Patrick Harris sang “He won an Oscar” to the tune of the jingle we wrote.

A lot of people will be armchair quarterbacking this week asking if Farmers was right to retire Professor Burke. The honest answer is that I don’t know. There are a lot of smart people who know the business and what it needs today better than I do. What I do know is this: when you take an honest truth about your company, pursue it relentlessly and consistently and make it a part of culture, it changes the course of a brand.

Brands that make culture make money. And a lot of that comes down to leveraging distinct brand assets. Sometimes you create them and sometimes you inherit them. But all that really matters is what you do with them. That’s how you make a brand rich and famous. And while Professor Burke may have retired to a beach, the mark he left on Farmers will last forever. I hope the jingle lasts another 16 years.

Helluva run.

Saturday, July 18, 2026

17540: Honestly, New Farmers Insurance Campaign Is BS.

Advertising Age spotlighted the newish campaign for Farmers Insurance produced by new White advertising agency Dentsu Creative, with media duties being handled by new White media agency Havas Media.

 

The campaign theme declares, “Honesty Is Our Policy.”

 

Good luck promoting that platform. After all, advertising practitioners and insurance salespeople are consistently ranked among the least-trusted professions.

 

Farmers Insurance unveils a pink-drenched refresh and tweak to its jingle

 

By Tim Nudd

 

Farmers Insurance is refreshing its brand with a coat of pink paint and a change to its famous jingle.

 

The company’s first major brand refresh in several years debuts in a campaign from new agency Dentsu Creative. The effort, themed “Honesty Is Our Policy,” debuts today (July 13) across TV, digital, social, out-of-home and experiential. It includes updated branding that prominently features bright pink visuals and a reworked version of the insurer’s longtime jingle.

 

A minimalist 30-second anthem spot … speaks directly to viewers against a solid pink background, delivering a straightforward message about understanding insurance. The spot also introduces a choir that will become a recurring brand element as part of the new platform.

 

Longtime spokesman J.K. Simmons is absent from the new campaign. “Professor Burke has been a strong and recognizable part of the Farmers brand for many years, but all professors reach their tenure, and we’ve retired him from the new campaign,” Farmers told Ad Age.

 

The choir sings much of the dialogue in the melody of the famous Farmers audio signature. At the end, the “We Are Farmers” refrain has been rewritten as “You Have Farmers,” shifting the focus from the company to the customer.

 

Supporting spots have a similar structure.

 

The repositioning reflects Farmers’ effort to address what it sees as lingering confusion around insurance policies and coverage details. Rather than emphasizing products or pricing, the campaign focuses on helping consumers better understand what their policies include and how coverage works, using more direct language across marketing and customer communications.

 

“The strategy is grounded in a simple belief: our customers’ insurance coverage should be easy to understand, with no jargon, no big words and no lawyer needed to make sense of it,” said Eleanor Solomon, head of creative for Farmers Insurance. “Farmers is introducing tools that help make insurance easier to navigate—highlighting what is and is not covered, offering coverage reviews even if your policy is with another insurer, and, in some cases, helping consumers explore alternatives when Farmers isn’t a fit for them.”

 

“The strongest brands don’t abandon their history, they build on it,” said Andres Arlia, executive creative director at Dentsu Creative. “We took the equity Farmers has earned over decades and reimagined it for a moment when consumers are looking for transparency over jargon and understanding over complexity. Every creative choice, from the visual refresh to evolving ‘We Are Farmers’ into ‘You Have Farmers,’ was designed to make the brand feel useful, human and relevant.”

 

The work is Dentsu Creative’s first major campaign for Farmers since being named the insurer’s creative agency of record. Before moving to Dentsu this spring, the Farmers account had been at RPA since 2010. 

Thursday, July 16, 2026

17538: On Farmers Insurance And City Slickers-Hucksters.

 

MediaPost reported Farmers Insurance named Havas Media as its new White media agency. Earlier in the year, the insurance company appointed Dentsu Creative as its new White advertising agency.

 

The only explanation for such mediocre firms winning media and creative duties must be the other White holding companies—Publicis Groupe, Omnicom, and WPP—already service insurance brands.

 

Referring to the latest campaign platform, the head of creative for Farmers Insurance declared, “The strategy is grounded in a simple belief: our customers’ insurance coverage should be easy to understand, with no jargon, no big words, and no lawyer needed to make sense of it.”

 

The same probably cannot be said for coordinating efforts between Havas Media and Dentsu Creative.

 

If there’s a policy covering marketing malpractice, Farmers Insurance should apply pronto.

 

Havas Media Named AOR For Farmers Insurance

 

By Steve McClellan

 

Farmers Insurance has appointed Havas Media as its new media agency of record after a review, the company confirmed today.  

 

Farmers’ estimated annual media expenditure is $51.5 million, according to agency research firm COMvergence.

 

“Effective immediately, Havas will support media strategy, planning, buying, activation and measurement across Farmers Insurance’s national marketing initiatives,” the company stated. 

 

Earlier this year, Farmers Insurance launched separate creative and media agency reviews. The firm announced that it had named Dentsu Creative as its new media agency in April. 

 

The firm previously worked with both RPA and Zenith on media assignments. RPA had been the firm’s longtime creative agency. 

 

Separately, the company unveiled the first work from Dentsu Creative and new assets that the company said are designed to make its offerings easier for consumers to understand. Changes include the new Farmers Coverage on a Page resource, a snapshot of coverage included in select Farmers auto and home policies. Also new: Farmers Coverage Review sessions.  

 

“The strategy is grounded in a simple belief: our customers’ insurance coverage should be easy to understand, with no jargon, no big words, and no lawyer needed to make sense of it,” stated Eleanor Solomon, head of creative for Farmers Insurance.

Sunday, June 28, 2026

17521: Dentsu Difference Disappearing & Disappointing.

 

MediaPost reported from Cannes Lions International Festival of Creativity on Dentsu Global CEO Takeshi Sano, who admitted facing the same problems as other holding companies—which he hopes to address with the same solutions including agility and adaptability, simplifying the portfolio, and client-centric focus. Oh, and he made references to AI integration too.

 

Things are bad in Adland when the only non-White holding company appears to be more vanilla than the White holding companies.

 

Dentsu Challenges: Pace Of Change, Complexity, Sameness, Says CEO Sano

 

By Steve McClellan

 

Dentsu’s Takeshi Sano notched his first major industry appearance as Global CEO on the Cannes Lions main stage Tuesday in an interview with CNBC’s Julia Boorstin.  

 

Dentsu’s major challenges, he said, are similar to the broader industry, including the pace of change, complexity, and competitive differentiation. 

 

Dentsu, he said, tries to remain agile in the face of constant change and has sought to simplify its business to make it more accessible to clients globally. 

 

Client stickiness hasn’t been a problem in Japan where many clients have been doing business with the firm for more than 100 years. In part Sano attributes the firm’s ability to sustain such long-term relationships via a culture focused on “client centricity.” 

 

Boorstin noted that such relationships aren’t common outside of Japan and wondered if one of Dentsu’s goals was generate “century clients” outside of the country. “Hopefully,” Sano responded. “If we focus on client results, we can achieve long-term relationships.” 

 

Asked how he is thinking about AI and innovation, Sano technology expands possibilities. The challenge for companies and talent is selecting and applying the right possibilities to optimal benefit. 

 

“AI can’t define the future, or identify issues or goals,” he said. Those areas will remain for humans to grapple with. 

Thursday, May 14, 2026

17476: Dentsu Deploys Duplicative Dumbness.

 

MediaPost reported Dentsu flattened its EMEA org chart, which squashed the EMEA CEO, a 20-year veteran now being squeezed out of the holding company.

 

Gee, that move looks familiar.

 

Dentsu Global CEO Takeshi Sano declared, “Since stepping into the Global CEO role, my focus has been on building a simpler, more agile and an even more client-centric dentsu. Our evolved cluster model in EMEA reflects that commitment. It reduces complexity, brings leadership closer to clients, and improves our ability to collaborate, deploying talent and capabilities with speed.”

 

Gee, that scheme sounds familiar. Oh, right—it’s what every CEO from a holding company or single White operating company is saying.

 

Dentsu Flattens EMEA Org Chart, Regional Heads To Report To Sano

 

By Steve McClellan

 

Dentsu today announced what it called a “simplified model” in Europe, the Middle East and Africa (EMEA) that will have Dentsu executives Annette Male, Sawomir Stepniewski, and Mariano Di Benedetto managing broader sections of the region and reporting directly to recently appointed global CEO Takeshi Sano. 

 

With the new reorganization, the position of EMEA CEO is eliminated and long-time company veteran and EMEA CEO André Andrade will leave Dentsu after more than 20 years with the firm. Giulio Malegori, executive senior advisor, Dentsu & chairman, Dentsu EMEA, will continue in his post. 

 

Sano stated in a release announcing the move that “Since stepping into the Global CEO role, my focus has been on building a simpler, more agile and an even more client-centric dentsu. Our evolved cluster model in EMEA reflects that commitment. It reduces complexity, brings leadership closer to clients, and improves our ability to collaborate, deploying talent and capabilities with speed.” 

 

Under the new setup, Stepniewski will manage the “core cluster” of Central Europe. Male will lead the Northern Europe cluster, expanding her remit beyond the UK and Ireland to include Nordics, Benelux and the Baltics.  

 

Di Benedetto will lead the Western & Southern Europe and MEA cluster, expanding his remit to take on Spain, Portugal, France and Sub-Saharan Africa, in addition to his current remit of Italy, Greece, Israel, UAE, Saudi Arabia, Egypt, Morocco, Lebanon, Qatar and Türkiye. 

 

The changes are effective in July.   

 

The EMEA management reorganization is not a template for other regions, a company rep stressed. “Each regional approach is specific to client needs and local market dynamics,” he said, noting the recent promotion of Beth Ann Kaminkow to CEO, Americas and chief global client officer. She was previously North America CEO. 

Tuesday, May 12, 2026

17474: Heineken Puts The Con In Consolidation.

 

Advertising Age reported Dentsu retained Heineken global media duties after a review, while creative duties were consolidated across Publicis Groupe, WPP, and Stagwell.

 

The Heineken Chief Commercial Officer stated, “Moving to fewer, better and bigger agency partners is part of our broader commercial transformation.”

 

Um, partnering with four of the six biggest holding companies underscores the exclusivity in Adland.

 

Independent White advertising agencies are shut out from serving global accounts.

 

Multicultural agencies likely receive even fewer crumbs—if anything at all.

 

Anyone not in a holding company is resigned to cry in their locally-brewed beer.

 

Heineken sticks with Dentsu for global media, shakes up creative roster

 

By Ewan Larkin

 

Dentsu has retained Heineken’s global media business following a competitive pitch process, with the brewer also consolidating its creative roster across Publicis Groupe, WPP and Stagwell.

 

Publicis retained global secondary production duties and, along with WPP and Stagwell, will handle creative for Heineken’s Amstel, Birra Moretti, Desperados and Tiger brands, as well as select local priority brands.

 

Creative for the flagship Heineken brand was not part of the review and remains with Publicis.

 

COMvergence estimates Heineken’s global media spend is $550 million.

 

Mediasense handled the agency review.

 

Dentsu’s reappointment is a much-needed vote of confidence for the Japanese holding company, which reported its worst annual loss last year and lost marquee media accounts including Microsoft. Dentsu has worked with Heineken since 2016, with the relationship expanding through a global media consolidation in 2021 and a two-year extension announced in March 2025.

 

The consolidation is part of Heineken’s EverGreen 2030 growth strategy and a broader commercial transformation initiative the brewer calls “Freddyai.” The goal, per the company, is fewer and deeper agency relationships built for speed, efficiency, and creative consistency across global markets.

 

“Moving to fewer, better and bigger agency partners is part of our broader commercial transformation,” Bram Westenbrink, chief commercial officer, said in a statement.

Wednesday, April 22, 2026

17448: Earth Day 2026 In Adland.

The theme for Earth Day 2026—Our Power, Our Planet—presents added meanings in Adland.

 

First, the event spotlights industry hypocrisy.

 

MediaPost reported industry advocacy group Clean Creatives published an open letter to executives at Netflix, which is running a review for its media business in Europe, The Middle East, and Africa.

 

Clean Creatives urged Netflix to add “fossil-free procurement” as an eligibility requirement. This would impact possible contenders Omnicom, WPP, and Dentsu, as all have fossil fuel contracts.

 

The Clean Creatives open letter states, “If the agencies pitching for Netflix's business won’t drop fossil fuels, Netflix should drop them.”

 

Stay tuned on that drama.

 

Second, the event spotlights industry exclusivity.

 

Adland arguably takes advantage of White power to dominate the world. That is, White advertising agencies—within holding companies and independent—embrace systemic racism to globally foster inequality.

 

The ruling majority in Adland seemingly declares, “We’ll use our power to rule our planet.”

 


Clean Creatives To Netflix: Pick ‘Fossil-Free’ Ad Agencies

 

By Steve McClellan

 

Industry advocacy group Clean Creatives has published an open letter to officials at Netflix, currently conducting a media agency review in Europe, The Middle East and Africa, urging the company to add “fossil-free procurement” as part of the eligibility criteria for the assignment. 

 

The company’s estimated net media spend for the region is $190 million, according to agency research firm COMvergence. 

 

It’s believed that Omnicom, WPP and Dentsu are vying for the contract and CC notes that following its acquisition of Interpublic, Omnicom now holds 120 “active or recent” fossil fuel contracts, while WPP has 82 and Dentsu 18. 

 

“As creatives, filmmakers, and climate communicators, we are frequently inspired by the stories Netflix tells – and by the investments Netflix has made to tell them responsibly,” the CC letter states.  

 

“Our planet is at a tipping point, not just in terms of our climate, but in our culture. Fossil fuel companies, aided by PR and media agencies, are contributing to a misinformation crisis that is making climate progress harder to achieve. Netflix has invested real resources in decarbonizing its supply chain. But the agency supply chain, where narrative power lives, hasn't been examined.” 

 

It urged the streaming giant to make fossil-free agency procurement an explicit criterion for the current EMEA review and establish it as a standard going forward. CC noted that there are more than 1,500 agencies worldwide that have pledged to refuse fossil fuel clients. 

 

“Choosing one of these pledged agencies is a low-friction, high-return climate action that is consistent with the commitments Netflix has already made,” the letter states. “If the agencies pitching for Netflix's business won't drop fossil fuels, Netflix should drop them.” 

 

Netflix representatives could not be immediately reached for comment.  

Thursday, April 16, 2026

17441: Dentsu Creative Transformation Lost In Translation…?

Advertising Age reported on leadership musical chairs playing at Dentsu Creative, an enterprise whose name has always been an oxymoron.

 

The latest moves include the US CEO and Global Brand President bailing out for another opportunity, and she’ll be semi-replaced by a Dentsu executive assuming an alternative title—CEO of the Americas—with different responsibilities.

 

The scenario presents an example of restructuring via deconstructing, resigning, and regurgitating.

 

Another noteworthy point is both executives mentioned above are not original creatives. That is, they never held true creative director titles or duties.

 

When Dentsu Creative launched in 2022, there was a Global Chief Creative Officer—although he quickly evacuated too.

 

Now, Dentsu Creative is regionally run by non-creative types, apparently supported by executives with creative backgrounds.

 

Dentsu Creative hypes itself with a tagline that reads: The Power of Transformative Creativity.

 

Okay, except variations on “transform” are among the top clichéd buzzwords in Adland. What’s more, the Dentsu Creative website doesn’t clearly explain its transformative offerings at all.

 

Dentsu Creative seems to be constantly transforming—in ways that are corporate versus creative.

 

Abbey Klaassen is leaving Dentsu Creative to join Tinuiti

 

By Ewan Larkin

 

Abbey Klaassen is leaving Dentsu Creative, where she most recently served as U.S. CEO and global brand president, to become CEO of performance marketing agency Tinuiti.

 

Klaassen succeeds Zach Morrison, who will step back from his day-to-day role after 21 years leading and building Tinuiti, which is backed by private equity firm New Mountain Capital and has roughly 1,200 employees.

 

Klaassen, a former Ad Age editor and associate publisher, rose quickly through the ranks at Dentsu. She held key positions at digital shop 360i before its consolidation into Dentsu Creative and subsequently served as president of the unit’s New York office. She was named Dentsu Creative U.S. CEO in 2023 and later added global oversight.

 

At Tinuiti, Klaassen will work to demonstrate how the agency is more than a performance shop. Tinuiti has expanded beyond its search-and-social roots into full-funnel work, including buying 2026 Super Bowl spots for brands such as Instacart and Liquid I.V., according to an agency statement. Tinuiti was also recently named full-funnel media agency of record for children’s apparel company Carter’s Inc., working across the U.S. and Canada. It nabbed that account from Stagwell’s Assembly, a sign that Tinuiti is competing not just against performance agencies like Wpromote.

 

Tinuiti has also named Bryan Wiener chairman of its board. He previously served as CEO of Publicis Groupe-owned digital commerce analytics firm Profitero+ and recently launched 37Arc, an AI firm focused on chief marketing officers. Wiener will work closely with Klaassen, with whom he overlapped during his time as chairman of 360i.

 

Klaassen’s departure comes as Dentsu deals with headwinds. The Japanese agency group in March appointed Takeshi Sano as global CEO, part of a broader reset after it explored selling its struggling international business—such a deal is now off the table—and reported its worst annual loss last year. Dentsu Creative has shed some lucrative accounts in recent years, including work with Subway and American Express, but recently notched a win with Farmers Insurance.

 

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How Dentsu Creative is rethinking its US leadership

 

By Ewan Larkin

 

Dentsu Creative is not directly replacing Abbey Klaassen, its U.S. CEO and global brand president, who is leaving to become CEO of performance marketing agency Tinuiti. Instead, the agency is restructuring the role, naming Dentsu veteran Phil Gaughran CEO of the Americas and expanding the position beyond the U.S.

 

Gaughran assumes the role after serving as president, global creative product, growth and strategy at Dentsu. Global responsibilities previously held by Klaassen will be supported by Yasuharu Sasaki, Dentsu’s global chief creative officer, along with a group of existing leaders across strategy, growth and creative.

 

Inside the move and Dentsu Creative’s strategy

 

A strategist by trade, Gaughran has spent 16 years with Dentsu, including more than a decade at Dentsumcgarrybowen and in corporate strategy roles. “He does some of his best work on a barstool, sharing a pint and a point of view towards solving some of the world’s problems,” his bio on Dentsu’s website reads.

 

Gaughran’s new role mirrors that of Beth Ann Kaminkow, who in March was named Dentsu’s Americas CEO after previously only leading North America. (Kaminkow has also added the global chief client officer title.) The restructure is designed to align leadership across the region and simplify how Dentsu Creative serves clients, while better connecting creative capabilities in the U.S., Canada and Latin America.

 

“We often have U.S.-based clients that extend into Canada and are either looking at Brazil or other high-profile markets, or they want a through line where everything from our offshoring capabilities, to our technology, to what we provide on the ground is all linked up,” Gaughran said in an interview alongside Kaminkow.

 

Gaughran’s business and client experience made him best suited for the position, said Kaminkow, adding that he has also been active in new business pitches, including Adobe’s creative review. The move also “felt like an obvious choice to create consistency with clients and continuity of service,” said Kaminkow, who joined Dentsu from WPP’s VML.

 

Gaughran’s appointment comes as Dentsu deals with headwinds. The Japanese agency group in March appointed Takeshi Sano as global CEO, part of a broader reset after it explored selling its struggling international business—such a deal is now off the table—and reported its worst annual loss last year.

 

Despite some high-profile client losses over the past year, including work with Subway, T-Mobile and American Express, Kaminkow and Gaughran stressed that Dentsu Creative is “healthy” and improving. The agency recently notched a win with Farmers Insurance, which had been with incumbent RPA since 2010.

 

Gaughran described the past few years as something of a building phase, focused on developing AI-enabled systems and tools internally, and said Dentsu Creative is now ready to “externalize” that work. Kaminkow pointed to a win with i-Health, led by Dentsu X with support from Dentsu Creative, as early evidence of tighter collaboration between media and creative.

 

“We are back on the up,” Gaughran said of Dentsu Creative.

 

The agency isn’t done making moves. Gaughran and Kaminkow indicated more senior hires are on the way, including creative talent.

 

“We feel like we still have opportunity to strengthen the team,” Kaminkow said. 

Wednesday, April 15, 2026

17440: ICYMI FTC VS HOLDCO WTF.

MediaPost reported Dentsu, Publicis Groupe, and WPP reached agreements with the Federal Trade Commission to stop engaging in “unlawful collusion that imposed uniform standards on brand safety.”

 

Omnicom and IPG previously reached similar agreements with the FTC during regulatory approval of Omnicom’s acquisition of IPG.

 

The holding companies are not prohibited from continuing to engage in Corporate Cultural Collusion and/or concerted hiring practices that maintain exclusivity.

 

Indeed, the FTC complaints are arguably connected to anti-Woke and anti-DEIBA+ political platforms.

 

FTC: Dentsu, Publicis, WPP Agree To Discontinue ‘Brand Safety’ Standards

 

By Wendy Davis, Joe Mandese

 

The Federal Trade Commission this morning announced agreements with three big agency holding companies — Dentsu, Publicis and WPP — to discontinue what the FTC described as “unlawful collusion that imposed uniform standards on brand safety.”

 

Citing previous agreements by Interpublic and Omnicom as part of the FTC’s regulatory approval of their merger late last year, the federal agency said Dentsu, Publicis and WPP have also agreed to a proposed order that “will stop the alleged coordinated conduct and prevent similar conduct from occurring in the future.”

 

“WPP Media confirms that it has reached agreement on a mutually acceptable consent order with the FTC on a no admit nor deny basis,” WPP Media said in a statement, adding, “We are pleased to finalize this agreement with the FTC which reflects our existing and ongoing commitment to provide our clients with unbiased advice as they decide where to place their media.”

 

“The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC Chairman Andrew Ferguson said in a statement, adding, “The antitrust laws guarantee participation in a market free from conduct, such as economic boycotts, that distort the fundamental competitive pressures that promote lower prices, higher quality products and increased innovation.”

 

“As we explain in our complaint, the brand-safety agreement limited competition in the market for ad-buying services and deprived advertisers of the benefits of differentiated brand-safety standards that could be tailored to their unique advertising inventory,” he continued. “This unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor. The proposed order remedies the dangers inherent to collusive practices and restores competition to the digital news ecosystem.”

 

The FTC cites all of the named holdco’s utilization of data from “firms like NewsGuard and Global Disinformation Index” to “promote the demonetization of disfavored political viewpoints. In a competitive market, ad agencies compete for advertisers’ business by offering brand-safety tools that provide the best quality at the lowest cost. The brand safety agreement displaced competition by insulating the ad agencies from these competitive conditions, according to the complaint.”

 

The FTC complaint also alleged the holdcos “operated through their trade associations — specifically, the World Federation of Advertisers’ Global Alliance for Responsible Media (“GARM”) and the American Association of Advertising Agencies’ Advertiser Protection Bureau (“APB”) — to establish their common brand-safety standards. Under the agencies’ brand-safety agreement, websites that included so-called “misinformation” were deemed to fall below the brand safety floor and thus risked becoming categorically ineligible for advertising revenue.”

 

The settlement still needs to be approved by a federal judge.