What if the rumours are true? What if WPP and Accenture are considering an M&A relationship together? Is there an upside for creativity? Probably not. Accenture Song is likely to be looking for media clout. WPP Media (formerly GroupM) makes up to 40% of WPP’s revenue. WPP is likely to be looking for help out of its doldrums – its full year revenue forecast has slipped to -3% to -5% (from flat to -1%), it currently in the middle of a CEO changing of the guard, it has lost a number of clients and its share price has dropped more than 50% this year. Creativity is unlikely to be seen as the path to profit in the current industry climate.
David Droga is a creativity champion, albeit Accenture Song leans heavily into technology. He believes that the current media model [essentially, WPP’s media model] is broken. But Droga is stepping down from his role as Accenture Song CEO. Mark Read has also promoted advertising creativity when asked. WPP has been investing heavily in data and technology, including AI (as a tool), to support its creative teams, believing that AI and creativity are intertwined and essential for future success. Mark Read is also stepping down from his role as WPP CEO.
It is likely that incoming Accenture Song CEO, Ndidi Oteh, will have media on her mind. Like Droga, she rejects the old media model. Does that make WPP and Accenture Song incompatible? And incoming WPP CEO, Cindy Rose, has spent the last nine years in senior leadership positions at Microsoft where she is currently chief operating officer, global enterprise. She is likely to have revenue and reputation on her mind. Will she consider an Accenture takeover the answer?
Recent campaigns and awards are very unlikely to turn be what turns rumour into reality, but creativity may well be the “child” caught in the relationship if it happens. Here are some suggestions about the value of creativity to both companies and perhaps also the creative standing of each.
