Hogarth to service all of WPP’s client production work in ‘horizontal’ strategy
Australia’s largest marketing group, WPP AUNZ, has announced production business Hogarth will now assume all of the group’s production responsibilities, cutting other agencies and providers from production work.
In the group’s annual report released today WPP AUNZ’s CEO, Mike Connaghan, said Hogarth will be set up as a “horizontal” business to service their clients’ production needs.
WPP AUNZ’s agency diagram
“A key objective for the Board in 2018 will be to increase the ownership of WPP AUNZ shares amongst our employees.”
Everyone will get shares instead of promotion or raise. #Horizontality
I take this pace of change indicates that business conditions have deteriorated dramatically ?
Given that all creative agencies rely on the profit margins associated with production, you can be sure that there will be a helluva lot more agency consolidation.
I’ve noticed that Rob, the Chairman, has had a lot more to say recently.
Horizontality? As in lying down? On the job? Utter tosh.