17529: On Trust, Distrust, And Mistrust At WPP.

More About Advertising spotlighted troubles at WPP Media, including:

 

• The former head of WPP’s media operation in China received a life imprisonment sentence for charges stemming from a $176 million scam—and two others were also hit with stiff sentences.

 

• The former head of a GroupM division in New York City filed a ‘whistleblower’ lawsuit, charging he was fired for raising red flags that WPP’s trading division illegally retained profits that should have been passed back to clients.

 

Additionally, there’s a class-action lawsuit filed by shareholders charging WPP with deceptively sugarcoating profits last year.

 

It all makes for bad optics, especially given the single White operating company is restructuring itself as a media-first enterprise.

 

WPP CEO Cindy Rose declared, “We want to be a trusted growth partner for our clients in the era of AI.”

 

The corporate website proclaims, “WPP Is The Trusted Growth Partner For The World’s Leading Brands.”

 

Okay, except WPP displays internal distrust. Media is globally viewed with suspicion and concern by clients. And Adland practitioners are consistently rated among the least-trusted professionals.

 

Trust is earned. So is distrust and mistrust.

 

WPP’s China crisis – why is the holding company so accident-prone?

 

By Stephen Foster

 

Any business handling millions, sometimes billions, of other people’s money on ultra-tight margins is open to fraud, indeed it may be tempted to try itself.

 

The former boss of WPP’s media operation (GroupM) in China has been sentenced to life imprisonment, accused of masterminding a $176m scam. Two others have also received stiff sentences. The Chinese judicial system is hardly famed for its transparency but WPP has been careful to distance itself from the three employees. Its business in China, hardly a surprise, has been hammered.

 

That isn’t the only cloud on the horizon though. Over in NYC there’s what’s being termed a $100m ‘whistleblower’ lawsuit from Richard Foster, one-time head of GroupM’s Motion Content Group (whatever that was) alleging that WPP fired him for raising concerns that WPP’s trading division used client spending power to secure cash rebates and volume-based discounts from media owners, illegally retaining profits rather than passing them back to clients. Ring a bell?

 

Also in NYC, there’s a class action by angry shareholders claiming the company failed to appraise them fully of the collapse in profits last summer which, ultimately, led to the departure of CEO Mark Read. Making overly-optimistic noises can be costly.

 

Finally (and there may of course be more) WPP is involved in a long-running dispute in Kenya with the founder and former CEO of WPP Scangroup Bharat Thakrar alleging that WPP, among other things, has been using Scangroup money to prop up the holding company, to the detriment of Scangroup. It’s redolent of other far-flung WPP disputes including its agencies in Australia.

 

Now WPP may deal with all these issues and emerge smelling of roses but they surely affect its ability to trade its way out of current problems. They must be especially galling for all those people at Ogilvy and VML who have just notched up a stellar Cannes Lions, seemingly doing a great job for their clients despite all the noise (and worse) around them.

 

WPP’s biggest problem – in a competitive field – is debt, around £3bn against a total company value of £2.64bn. New CEO Cindy Rose’s first job is to reverse these positions. But it’s hard to see what else she can sell to do it. It’s already sold out of research (Kantar) and PR (FGS Global) without making much of a dent in the debt. That in itself is something of a puzzle.

 

Then there’s what we might politely called proprietary media trading (or broking), the smokey activity behind many of the above issues, including China where media deals seem to have been carved up in a Shanghai poker game. Almost certainly more such cases will emerge, partly because no-one seems to know whether it’s legal or not. The US courts may help us out.

 

This Cannes Lions should be a turning point for WPP. But there’s still a lot of old baggage lurking in the undergrowth.

17528: When It Comes To DEIBA+ Progress, Adland Networks Do Not Work.

 

During a 2009 heat shield event, former Ogilvy North American Chairman John Siefert admitted Adland was “not exactly leading the way” in DEIBA+ progress.

 

Can’t help but think of Siefert’s admission while viewing the image above featuring Ogilvy celebrating its Network of the Year honor at Cannes Lions International Festival of Creativity.

 

It’s sadly safe to say Adland—via White advertising agencies like Ogilvy—is leading the way in systemic racism.

17527: Putting The Con In Content.

Contentful helps marketers personalize, optimize, and create standout digital experiences at scale—advertising their services on trade publications like Adweek.

 

Such media placement probably intrigues shitty clients seeking fast and cheap content. Meanwhile, drones at White advertising agencies are undoubtedly annoyed to see Contentful actively stealing their jobs.

 

BTW, the Contentful promotional campaign sucks, seemingly produced by AI—or amateurish hacks. 

17526: Bored On The Fourth Of July.

 

Adweek published a perspective on producing Fourth of July patriotic marketing the right way—and no, that doesn’t mean the right-wing way.

 

The author cautioned against clichés and performative propaganda, emphasizing the imperative for authenticity.

 

Gee, the advice mirrors what is annually repeated about Black History Month, Hispanic Heritage Month, Pride Month, etc. Amazing that the author didn’t declare, “Independence should be celebrated on the Fourth of July—and all year long.”

 

Except Fourth of July campaigns likely receive four times the marketing budgets versus campaigns of color (skin tones and rainbows). It’s comparing cash to crumbs.

 

God bless America.

 

For America250, Patriotic Marketing Has to Look Beyond the Cliches

 

July 4th is a reminder that marketing can’t manufacture authenticity.

 

By Nataly Kelly

 

Last week in Cannes, authenticity (again) emerged as the industry’s favorite answer to seemingly every question about AI. Want to preserve trust in the AI era? Need to produce quality content that isn’t AI slop? The answer to all that ails you is authenticity. 

 

The problem is that, in reacting to AI, we’ve gradually narrowed its scope. We debate the legitimacy of AI-augmented content, whether creators will help us relate to customers in a more real way than celebrities, and whether Tagline A feels more rooted in humanity than Taglines B-ZZ. 

 

We spend far less time asking a more foundational question: Did the business behind that campaign actually earn the right to tell a story it wants to tell?

 

July 4th and America250 offer marketers a useful litmus test: Is patriotic marketing too polarizing?

 

The right way to wave the flag

 

To address the elephant in the room, yes, nationalism is more politically charged than it used to be. More than half of Americans (56%) say the American flag has become more polarizing over time. 

 

For years, the Fourth of July playbook was remarkably consistent: fireworks, military flyovers, and flags printed on the same products Americans buy every day. But today, that formula carries more risk, leaving some brands wondering if they should actually do anything for America250 at all. 

 

Despite the politicization of, well, everything, Independence Day remains a source of national pride. About half of Americans (49%) say patriotic branding makes them view a brand more positively. Only 3% believe brands shouldn’t celebrate America at all.

 

Consumers want to feel patriotic, but they want it to feel meaningful rather than performative. Some of the most interesting campaigns of the year are striking that chord. 

 

Coca-Cola, for example, is doubling down on community. Yes, they are printing flags on a limited edition run of cans. But the brand is also getting out into communities in a year-long campaign by committing to 250,000 volunteer hours focused on tackling food insecurity, sustainability, and youth empowerment. They also created a mural initiative with local artists in cities across the country. 

 

It’s a campaign that gives consumers the ability to celebrate in small ways within their own communities. 

 

Authenticity starts long before the campaign does

 

Increasingly, as consumers wonder if what they are seeing is AI-generated or if a brand really deserves their trust, authenticity no longer belongs to the creative department. It belongs to the business. 

 

When we asked Americans which brands best represent the country, they named Ford, Walmart, and Coca-Cola, all of which are brands deeply embedded in everyday American life. They’ve earned this connection, not because they flew the biggest flag, but rather because they make everyday life possible and enjoyable to a huge percentage of the population. 

 

But it’s not just where people shop and what they buy that helps them form opinions about a brand. Sometimes, brands show up in consumers’ lives in ways that actually put money back in their wallets. Our research found that nearly two-thirds of Americans trust companies that invest in local jobs more than companies that simply run patriotic advertising campaigns. Consumers reward brands that demonstrate patriotism through community impact.

 

Another way to build relevance is simply to remind consumers of how a brand helps them enjoy what they already love. Through its “Taste of America” campaign, Kraft Heinz, an official sponsor of America250, connects summer and celebrations back to the brand through depictions of cookouts that are made possible in part by its products. 

 

Patriotism doesn’t have to look like flags and fireworks. And the conversation around authenticity shouldn’t stop at creativity—it should permeate every part of the business that ultimately connects to how consumers experience the brand.

17525: IBM Reboots Advertising And Media, Boots WPP.

 

Advertising Age reported IBM named Stagwell its White holding company for creative duties, which will be co-handled by White advertising agencies Anomaly and Code and Theory.

 

Incumbent WPP White advertising agency Ogilvy declined to participate in the review, just as incumbent WPP Media declined to participate in an earlier media review that was won by Omnicom.

 

Surely serious behind-the-scenes politics persuaded WPP units to give up continuing roughly 32 years of service for IBM.

 

After all, Ogilvy just won Network of the Year at Cannes Lions International Festival of Creativity, establishing its creative chops far exceed those of Anomaly and Code and Theory—or any White advertising agency in the Stagwell stink factory.

 

Ad Age headlined AI capability and speed won the business for Stagwell.

 

Huh? WPP boasts unmatched and unprecedented AI ingenuity. Plus, the corporate website declares WPP Production delivers content at speed and scale, blah blah blah.

 

Whatever true circumstances ignited the scenario, WPP probably now thinks IBM stands for Insane Business Massacre—or Immense Bowel Movement.

 

IBM hires Stagwell as lead creative partner—AI capability and speed won out

 

By Brian Bonilla

 

IBM has selected Stagwell as its new lead creative partner following a competitive review that ended the tech company’s roughly 32-year relationship with Ogilvy. The assignment comes as IBM seeks to sharpen its positioning around enterprise AI and accelerate its marketing efforts.

 

Stagwell’s Anomaly and Code and Theory will jointly lead the account, helping evolve IBM’s “Let’s Create Smarter Business” campaign across channels and geographies.

 

WPP’s Ogilvy previously stated that it declined to participate in the review, which was led by consultancy 3C Ventures.

 

IBM named Omnicom its global media agency earlier this year. In that review, WPP Media was the incumbent and declined to defend the business.

 

IBM marks a significant win for Stagwell, the 13th-largest agency company according to Ad Age Datacenter, which has been looking to prove its global chops. This year, Stagwell has secured key creative wins with Mondelēz International, Hershey and gaming entertainment company Allwyn AG.

 

The appointment comes as IBM expands its enterprise AI offerings with new products unveiled at its Think 2026 conference in May. The new agencies will focus on promoting some of IBM’s tools, such as Watsonx Orchestrate, which helps enterprises manage and deploy AI, and IBM Bob, an AI coding tool for businesses, along with brand positioning work.

 

The review prioritized three capabilities: strong creative, strong tech and an ability to help IBM “move in a lot more flexible way, with a lot more speed” than it “had in the past,” said Jonathan Adashek, IBM’s senior VP, marketing and communications.

 

“Flexibility is about taking advantage of opportunities that come quickly and really shortening the creative cycle for us,” Adashek said.

 

Those requirements reflect broad changes underway within IBM. The company has increasingly embraced AI across its own operations, positioning itself as “client zero” for its technology. Adashek said IBM has removed $4.5 billion in costs over the past three years, largely through AI and automation, and plans to remove another $1 billion this year.

 

Before the introduction of AI, IBM’s marketing creatives spent 80% of their time on derivative assets, he said, noting that the amount has been reduced “substantially” to below 40%.

 

A major factor in the decision was “The Machine,” Stagwell’s agentic operating system that connects with a client’s existing tools. Adashek said he was impressed that The Machine integrated insights from across the broader Stagwell network, citing The Harris Poll as an example. “The insights they can bring from other parts of the Stagwell organization—to not make it just an Anomaly and Code team … I think that’s essential,” Adashek said.

 

Just as important was Stagwell’s willingness to work within IBM’s own systems rather than require the client to adopt an agency-owned platform. “We’re going to work together with the client on enhancing their tech stack, rather than pushing them into a closed or walled garden on our part,” said Stagwell Chairman and CEO Mark Penn.

 

For IBM, that philosophy closely mirrors how it works with enterprise clients. “Our data is our data, and it’s sort of that special sauce that gives us the IBM flavor,” Adashek said.

 

Rather than dividing creative responsibilities among multiple shops, IBM wanted one lead partner capable of supporting the entire business.

 

“Fundamentally, as an organization, if we have too many different angles, then we’re not aligned at a central point. Before too long, people don’t understand what you’re trying to do, and then you stand for nothing,” Adashek said.

 

IBM expects the first work from the partnership to debut around the US Open in August, including new TV creative as part of a broader campaign spanning multiple channels. IBM is the official AI and cloud partner of the US Open.

 

The IBM creative pitch process

 

Adashek said that he attended early chemistry meetings and received reports after each pitch meeting. Neither he nor Penn sat through pitch meetings. Instead, IBM intentionally left the evaluation to the executives who will manage the relationship day to day.

 

“I wanted the team to be engaged,” Adashek said. “The team was so compelled by the content, by the approach, by the tools, they said this is the way we need to go.”

 

Penn said his own role was limited to reviewing work behind the scenes and ensuring that the agencies had the right mix of capabilities.

 

“I’ve been around enough to know that this is never about the CEOs,” Penn said. “It’s about the people on the account team.”

17524: All Day I Dream About Sacks.

MediaPost reported Omnicom won the estimated $560 million global media account for adidas, beating Publicis Groupe and incumbent WPP in a competitive shootout.

 

WPP CEO Cindy Rose should probably start looking for some running shoes. Ditto lots of WPP Media drones soon to be sacked.

 

Omnicom Wins $560 Million Adidas Media

 

By Steve McClellan

 

Last week Omnicom left Cannes with a total of 160 Lions. This week it collected an arguably more lucrative prize: the global media account for German athletic footwear and apparel giant adidas, sources confirm.  

 

Omnicom Media Group agency PHD will lead the account. 

 

Adidas’s annual media expenditures are estimated at $560 million by agency research firm COMvergence. 

 

For the last eight years adidas has worked with WPP agencies. Mediacom won the account in 2018 after a global consolidation review.  

 

WPP and Publicis are said to have pitched for the adidas business. 

 

Neither adidas nor Omnicom representatives returned queries seeking comment before this posting. 

17523: On Life—And Lifetime Achievement—In Adland.

MediaPost spotlighted Susan Credle, who the trade publication identified as Interpublic Global Creative Advisor—despite IPG’s erasure after being acquired by Omnicom.

 

Oddly enough, Credle’s LinkedIn profile displays her present experience as Interpublic Global Creative Advisor and Omnicom Creative Advisor.

 

Perhaps Credle is a fractional Planetary Creative Advisor. Or maybe she’s also in limbo, waiting for Omnicom to sort through restructurings, redundancies, and RIFs resulting from the acquisition.

 

Credle came to Cannes to collect the Lion of St. Mark lifetime achievement award.

 

Yet now Credle admits being uncertain about her next work-life stage.

 

That’s life in Adland today.

 

Credle At Cannes: ‘Fast And Cheap’ Equals Ad Pollution

 

By Steve McClellan

 

Ad agency veteran and current Interpublic global creative advisor Susan Credle told a Cannes Lions audience Monday morning that while there’s been much talk lately that consumers care less about brands these days, maybe it’s the industry that needs to care more about them. 

 

Credle, this year’s recipient of the Lion of St. Mark lifetime achievement award, said, “We’re in a slightly weird place right now,” where all the focus on AI and technology has led the industry to focus a bit less on brand building.  

 

“Fast and cheap,” she said, amounts to so much “ad pollution.” Refocusing on brand building, she added, is perhaps the best way to regain consumer trust. 

 

On stage with Paul Kemp, Cannes Lions Chief Content Officer, Credle talked about her formative years and passion for cheerleading and acting in high school. She was declared “biggest flirt” during her high school years, which she interpreted as “enjoying being around people.” Cheerleading, she added, may have been her first copywriting job because it involved writing cheers promoting a team and urging them to win.  

 

In college she learned quickly that journalism—at least the stick-to-facts kind—wasn't a passion of hers. She was steered to the advertising department where she could focus on a blend of “creativity and outcomes.” 

 

In 1985 she headed to New York City “with a suitcase and a dream.” She landed an entry level job at BBDO (filling in for receptionists who were on bathroom breaks), and ended up staying for more than two decades. 

 

At BBDO she landed on the Mars account where she had the audacious idea of killing off the M&M characters because she believed they were boring. That idea didn’t fly and she (and her art director partner Steve Rutter) then proposed developing the characters into a comedic ensemble with distinct and funny personalities. The problem there—no budget to do that for TV, at least at first. Instead the characters were merchandised and their personalities began to blossom via quips on T shirts.  

 

The characters’ popularity took off, and they were developed and integrated into TV campaigns led by Credle and Rutter. At one point NBC wanted to have the characters introduce its Thursday night lineup. It was at that point, Credle realized that the characters had entered the cultural zeitgeist. “Hollywood came calling us,” she noted, not the other way around.  

 

Later this year Credle will be leaving Interpublic for a new chapter. For now, Credle said she’s not sure what’s next. Stay tuned.