With Its New Private Equity Investment, Brainlabs Wants to Keep Aggressively Expanding


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A new investment from private equity firm Falfurrias Capital Partners has propped up independent full-service agency Brainlabs’ valuation to an estimated $320 million.

Brainlabs declined to confirm the investment amount. The estimated value is according to sources familiar with the matter who spoke with Adweek anonymously.

The agency’s been executing an aggressive expansion strategy, with plans to become the world’s largest independent agency. In March, it won Consumer Cellular’s $50 million retail media, paid search and paid shopping business. It’s also recently added clients Estée Lauder Companies, Adidas, WeTransfer, Formula 1 and Capital One to its roster. As its attracted these clients, it’s been speedily acquiring other shops that beef up its service capabilities. In 2022, it acquired influencer agency Fanbytes, conversion rate optimization agency User Conversion, Amazon agency Molzi, programmatic agency MediaNet, the mobile ad creative studio Consumer Acquisition and data firm Nabler.

It’s still pressing forward, committing to use its new investment capital to achieve international growth, particularly in markets across Europe, Asia Pacific and Latin America. Private equity firm Livingbridge, Brainlabs’ previous investor, has now exited. Since receiving its first investment from Livingbridge, Brainlabs grew by 800% and now employs approximately 900.

“We’ve come a long way since I started the agency in my parents’ attic, just over 10 years ago. From day one, this business has been built on the belief that high performance in media would require a data-driven, tech-enabled methodology, rooted in digital media,” Daniel Gilbert, Brainlabs global CEO, said in a statement.

Scaling quickly

Stephen Allan, now Brainlabs’ executive chairman, previously led WPP media agency MediaCom. At the time, it was the world’s largest.

Allan first met Gilbert years ago while in the global CEO role. “The reason I meet Dan some years ago is because I tried to buy the business,” Allan told Adweek. At the time, Gilbert declined to sell to WPP or another holding company, opting instead to raise money from investors. “Different agencies choose different paths,” Allan added.

There’s been significant change in terms of how large agencies are assembling. With consolidation rampant across the holding companies, individual agency brands are becoming scarcer amidst group-level brands like Dentsu Creative forming. All of this consolidation, counterintuitively, leads holding companies to hold fewer companies. This is prompting myriad questions about how, exactly, the industry should define a holding company: Must it be publicly traded, or is a holding company simply a company that acquires subsidiaries? “There’s been so much conversation around integrating marketing and media,” said Allan. “What you will have seen is holding companies cobbling together different agencies in their group, putting them under some kind of branding header. The reality is, those businesses are not integrated,” MediaCom’s former leader continued.

Today there are relatively few fully integrated agencies, limiting options for investors wary of investing in multiple companies with disparate offerings, Alexander Jutkowitz, global CEO of Group SJR, said in a statement. Investors must consider investing in performance-focused agencies, or investing in those that prioritize brand marketing. Brainlabs, with its implicit integration and its plans to become even more so, presented an attractive third option for investors tiring of the brand and performance dichotomy.

‘We’re not competing to be the big creative ideation agency’

Brainlabs leaders tell clients it is a high performance agency, employing a number of employees with backgrounds in science, mathematics and technology. The agency has a large in-house technology team, and, according to Allan, currently creates and builds both its proprietary marketing technology, as well as technology solutions for its clients.

It’s focused on dynamic creative (DCO) integrations, technology many media agencies are investing in, with varying results. As agencies attempt to master marketing across the now-broad social media platform ecosystem, many struggle to produce the sheer amount of creative they’d need to connect directly with each target buyer. Creating effective content en mass using DCO is one way Brainlabs wants to differentiate itself from competitors.

“We’re not competing to be the big creative ideation agency … There’s Wieden+Kennedy, or whatever those great agencies are,” Allan said.

This is relatively rare for an independent agency, given their limited scale compared to holding companies. Other independent agencies, including Texas-based PMG and Horizon Media, considered the U.S. market’s largest independent, also built advanced proprietary technology stacks. Technology investments are paying off, especially for PMG, which won Nike’s U.S. business last year in large part on the strength of its Alli technology platform.

Brainlabs expects it’ll soon compete with holding companies

Over Brainlabs’ investment cycle, it will build and develop more global hubs to increase its attractiveness to larger advertisers with global reach and push beyond the eight markets it now operates in. These enterprise-level clients are, in general, concentrated within holding companies. “I could see this amazing opportunity for us to scale up the business. By scale up, I mean to work for increasingly larger enterprise-level clients,” said Allan.

Aggressive acquisition strategies do benefit agencies who can afford them. Newer holding companies like Stagwell and Media.Monks acquired other shops at a rapid pace, helping the parent companies achieve relevance and nab larger clients quicker than other mid-to-large-sized shops. Now, it’s common to see Media.Monks pitching against legacy holding companies.

Allan expect this for Brainlabs, too. “I think who we used to pitch against, versus who we are pitching, versus who we will pitch against is definitely evolving,” he said.

Going up against larger shops is possible, also because shifting media trends continue disrupting media agencies’ buying models and rendering buying power obsolete. Before programmatic media and now, proliferating channels like retail media and CTV became relevant, holding companies could wield their clout (relationships with suppliers and bulk ad buys), to secure the best deals for their big clients.

“Scale today is not what it meant in the past in my former life [as MediaCom’s global CEO],” Allan said. “I go back over those four decades [and] scale was important in terms of, for example, the TV-buying market … In terms of having the biggest fist slamming the table, [scale] is just not relevant,” he said.

Now, Allan finds scale to be synonymous with organic growth, plus an aggressive acquisition strategy. More acquisitions, and especially those that would allow Brainlabs’ expansion to new global locations, are likely ahead.

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Havas Acquires Majority Stake in Uncommon Creative Studio


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French agency network Havas has acquired a majority stake of 51% in U.K. agency Uncommon Creative Studio.

The Vivendi-owned business said the move could help the agency, now in its fifth year, reach a value of over $150 million before 2030.

Uncommon founders Natalie Graeme, Lucy Jameson and Nils Leonard will retain a material 49% stake.

The London-founded agency will now sit within the Havas Creative network, which is overseen by Donna Murphy, global chief executive of Havas Creative and Havas Health & You. However, it will operate independently and maintain its “entrepreneurial zest,” according to a statement released by both companies.

Yannick Bolloré, Havas’ global chairman and chief executive, said Uncommon would bring “new energy, creativity and audiences” into Havas’ existing proposition.

Bolloré added, “Uncommon have created a new space and energy in the industry. They are a once-in-a-decade company and having them join the Havas family is an exciting prospect. We share a vision: with every project, Uncommon and Havas remind the world that creativity is, and always has been, the difference.”

Opening doors globally

Uncommon was founded in 2017 by the trio of ex-Grey London execs billing itself as “the creative company for leaders and founders in a moment of change.”

The London-headquartered agency’s U.K. client roster includes British broadcaster ITV and British Airways. It recently picked up its first Cannes Lions Grand Prix for its “A British Original” billboard campaign for the latter which featured 500 unique print, digital and outdoor executions.

In the U.S., Uncommon has already worked with brands such as Google and Nike Jordan, but following the cash injection from Havas, it will now open a New York office to grow its foothold in the market.

There will be additional benefits in becoming part of the wider Vivendi group, which has a stake in Universal Music Group and owns TV business Canal+, film production company StudioCanal and games business Gameloft.

“Havas, along with its sister companies in Vivendi, offer Uncommon a way to accelerate into the spaces where we have already made headway,” said Graeme.

“Whether that’s into the entertainment world—taking what we started with our Nick Cave documentary [‘This Much I Know’]—or our design practice, gaming or other geographies. This partnership will open doors globally for Uncommon.”

Uncommon employs 169 staff. No layoffs are planned as part of the deal. Instead, there are plans to hire for Uncommon’s new U.S. outpost.

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New Role for Jellyfish Founder Rob Pierre as The BrandTech Group M&A Deal Finalized


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Digital media and marketing group Jellyfish has been wholly acquired by The Brandtech Group, driving their combined revenue to more than $1 billion.

Jellyfish, which was co-founded in 2005 by chief executive Rob Pierre, currently operates across 38 offices and employs more than 2,000 people. It has worked with clients such as Google, Uber and Netflix.

Pierre will take up the new position of chairman working with David Jones, founder and CEO of Brandtech Group, with a focus on merger and acquisition growth to further scale Jellyfish’s global footprint and capabilities. He will also work with Jones on sourcing “broader group opportunities.”

Brandtech Media founding partner Nick Emery will succeed Pierre as CEO of Jellyfish. He will be responsible for the day-to-day operations of the agency with a new board formed featuring Pierre, Jones, Emery, Brandtech Group partner Emma Cookson, vice chair and Brandtech Media CFO Dawn Dickie, group general counsel Betty Louie, Jellyfish CFO Chris Lee, and Jellyfish chief operating officer Ed Ball.

Emery will also act as executive chair of the board.

In a statement, Pierre said: “Fast-paced, fragmented and platform-led, today’s media landscape is changing at lighting speed. Supporting the ambitions of today’s global brands requires something unique, and that’s what I believe we have been building at Jellyfish. The chemistry with The Brandtech Group was instant and compelling. Joining the Group will supercharge our capabilities and ambitions as we move into the next chapter of the Jellyfish story.”

Negotiations with majority shareholder Fimalac began in August. Fimalac will now become one of the largest strategic and long-term shareholders in The Brandtech Group. Fimalac director general Thomas Piquemal and Véronique Morali, Jellyfish chairman and president of entertainment media firm Webedia, will join The Brandtech Group’s board.

Fimalac acquired Jellyfish in 2019 for a reported sum of 500 million Euros.

“Marketing gets ever more complicated and our clients come to us for one thing: to help simplify this very complex world,” Jones said in a statement. “When I created the company, we set out to be the best in the world at helping clients connect content, data and media using technology, and bringing Jellyfish into the Group allows us to take this to the next level.”

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Four Stagwell Agencies Combine to Form New Crispin Porter + Bogusky


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Crispin Porter + Bogusky has gone through numerous changes over the past few years, from key account losses to leadership upheavals and becoming part of the Stagwell Media Network.

Now, in perhaps the biggest recent boost for the storied agency, four agencies within Stagwell are combining forces under the CP+B banner. MMI, Vitro and Observatory will come together as CP+B across North America, adding a collection of new capabilities to create an integrated powerhouse agency. 

According to Stagwell, the refreshed CP+B comes in response to the demands of modern marketers seeking simplicity, integration and breakthrough creativity. The trio of agencies enhances CP+B’s ability to deliver on those needs by adding paid and performance media and marketing, content and audience insight, and analytics. 

“For the past six months, we’ve been reviewing our portfolio of brands in response to the growing demand for integrated solutions that perform across creative, media and communications,” global CEO Brad Simms, who is also Gale CEO, said in a statement. “This move reclaims CP+B’s transformational DNA and integrates MMI’s media and performance marketing, Vitro’s boutique creative and Observatory’s branded entertainment capabilities.”

Under Simms’ leadership, CP+B has been on a growth trajectory since August 2022 with new client partners including Dropbox, Old Dominion Freight Line, Plackers and Nasonex, adding to its existing portfolio anchored by Buchanan’s Scotch Whisky. The new agency has more than 300 employees, bringing together media, creator and digital at scale as the agency looks to grow with an existing roster of brands including Amazon, Marriott, Procter & Gamble and 19 Crimes.

An agency that changed the game

Simms told Adweek that few agencies can claim to have changed the trajectory of the industry the way Crispin has done.

“Crispin fundamentally changed the way we thought about advertising by blending the lines of creative and media, and placing earned at the core of every idea. It was transformative then, and we believe with this move it will be transformative again,” said Simms.

One thing Simms has seen since taking the global CEO role in October is a big market demand for Crispin. He said the brand carries “incredible equity and awareness and is a magnet for both clients and talent, making it an important part of the Stagwell ecosystem.”

Maggie Malek, formerly the CEO of MMI, has been appointed president of North America, reporting to Simms. Malek has held a number of roles within MMI, leading the agency as CEO since 2019.

“CP+B earned a reputation as an industry disruptor with iconic campaigns that redefined what ‘creative’ looked like,” said Malek in a statement. “As the forces around us spark new technologies, channels and demand for integrated solutions, it’s invigorating to marry CP+B’s innovative creative spirit with complementary talent and capabilities across media, branded entertainment, content and creator marketing.”

Malek told Adweek that now is the first time in the past decade that there has been a significant investment in the infrastructure of Crispin that not only accelerates its growth but reclaims its prominence as one of the top creative shops.

“The Crispin network spans North America, London and Brazil, and we’ll continue to expand its footprint where we see opportunity,” added Malek.

Simms praised Malek’s ability to set a clear vision and drive it to fruition, along with caring for her people and a drive to deliver measurable impact and value for clients.

Rounding out the North American leadership team is Josh Braithwaite, chief creative officer for North America; Tom Sullivan, formerly CEO of Vitro and now chief growth officer for North America; Brendan Shields-Shimizu, formerly CEO of Observatory and now chief innovation officer for North America; and Laura Eder, formerly COO of MMI and now chief operating officer for North America.

At one time, CP+B was the creative agency leader, producing lauded work for clients including Mini, Domino’s, Hotels.com, Fruit of the Loom and Burger King, but has lost those key clients, most recently Hotels.com and Fruit of the Loom in 2021. When the agency came to Stagwell, the company committed to saving the agency and bringing it back to prominence, and this latest move appears to make good on that promise.

“CP+B is the original challenger brand and core to the fabric of Stagwell. I’ve said it before and will say it again: We believe in the CP+B brand, and with talented leaders like Brad and Maggie at the helm, I’m confident the future of CP+B is bright,” ​Stagwell chairman and CEO Mark Penn said in a statement.

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WPP Acquires Sonic Branding Agency Amp to Strengthen Landor & Fitch


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To strengthen its experiential branding offer, WPP has acquired sonic branding business Amp, which will join its design consultancy Landor & Fitch.

The acquisition of the agency, founded in 2009, will see its 60 people from across the U.S., Europe and Asia join the agency network, having created identities for brands such as Mastercard, Mercedes-Benz, Kraft Heinz, Deloitte, Shell and General Motors.

Led by global chief executive (CEO) and founder Michele Arnese, Amp’s offer includes an AI-powered platform called Sonic Hub, which allows the business to analyze, create and manage sonic assets for clients to ensure a brand’s audio content is consistent even when tailored to engage diverse audiences.

Arnese explained that by joining Landor & Fitch, the business would be given the opportunity to scale its Sonic design framework and Sonic Hub to reach “a broader brand identity context.”

According to Jane Geraghty, global chief executive of Landor & Fitch, the acquisition delivers “an unparalleled breadth of capability—graphic, digital, motion, physical, product and experiential—and now sonic” to the business.  

“It will also help us accelerate our rapidly growing accessible design practice. I’m enormously excited about what we can achieve together,” she added.

“With the rise of streaming, podcasting and short-form media, audio has become a critical component of the marketing mix,” explained Mark Read, CEO of WPP. “The acquisition of Amp enhances our offer to clients, helping them create immersive experiences that engage consumers on a deeper level and drive their competitive advantage.”

WPP has yet to reveal whether the Amp name would be retained, whether the agency would relocate to the business’ campuses around the world and what Arnese’s role would be moving forward.

This is the third acquisition completed by WPP in the last month, having strengthened its influencer offer through its purchase of Goat and Obviously, a technology-led social influencer marketing agency based in New York.

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WPP Scales Influencer Marketing Offer With the Acquisition of The Goat Agency


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With global influencer marketing spend set to hit $22.2 billion by 2025, according to Statista, WPP is tapping into the burgeoning market with the acquisition of The Goat Agency, one of the most promising agencies in the space.

The agency, which offers data-lend influencer marketing campaigns, was founded in 2015 by CEO Arron Shepherd and co-founders Nick Cooke and Harry Hugo. It has since grown to employ more than 150 members of staff working with brands such as Dell, Beiersdorf, Meta, Tesco, Uber, EA, Natura and Augustinus Bader.

In the last eight years, it claims to have tracked the performance of more than 50,000 influencer channels and more than 250,000 pieces of content too.

The acquisition will see Goat join GroupM and merge with its current influencer marketing offer INCA and as part of the media performance organization Nexus. This will create a new influencer company of more than 300 employees operating across more than 30 markets.

Mark Read, CEO of WPP, said influencer marketing was “a key growth priority” for both the industry and the agency network. 

“Our clients are increasingly planning budgets at a global scale and require partners that have the global reach to help deliver, whilst driving engagement and impact at a local level. Goat’s proven track record in the influencer marketing space paired with GroupM’s record of excellence will continue to build on our unparalleled expertise in this area,” Read added.

According to a report released by Grand View Research, the global influencer marketing platform market size was valued at $10.39 billion in 2021 and is expected to grow at an annual rate of 33.4% from 2022 to 2030.

GroupM global CEO Christian Juhl added that influencer marketing was “an exciting growth area” for the business and one that clients were looking for on a global scale.

“The addition of Goat to GroupM as part of GroupM Nexus gives us the ability to deliver accountable, cross-channel, and data-driven influencer solutions for clients anywhere in the world. Combined with the exceptional talent at INCA, we expect Goat to play a critical role in helping us define the next era of media at GroupM,” he said.

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The Red Flags to Watch for When Buying a Fast-Growing Agency 


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There are some marcom agencies where growth in their early years is nothing short of spectacular. Often—though certainly not exclusively—they’ll be in emerging, ultrafast-growth disciplines. This was once the case for “social” or even “digital” back in the day; now, it’s more likely to apply to areas such as influencer or the metaverse.

For buyers looking for their next deal, they can present a seemingly irresistible opportunity. Yet on the flip side, agencies that have gone from a couple of people to several hundred or more in just a few years can trigger alarm bells as well as excitement—that febrile growth often comes with downsides, as no one has yet built a perfect 360 agency at that pace. 

As with any opportunity for great reward, there is the potential for great risk, and buyer mindsets often need a bit of encouragement to adapt accordingly, especially in a market where all the focus is on risk rather than upside. The secret in securing a successful transaction is in how to tell the story of that growth—not glossing over the issues that inherently come with stratospheric growth but putting them into a context that explains how they sit within the particular growth narrative of the business in question. It’s also about knowing a buyer well enough to have a gut feel for their tolerance for different kinds of risks—what is a red flag to one buyer might well be a selling point for another.

Understanding red flags and how to manage them

Superfast-growth businesses usually have a founder—sometimes, two or three people—who first saw the opportunity and ran with it. Even in these more enlightened days, our industry still refers to “key man risk”—rightly or wrongly, success to date and into the future is seen as tied to these individuals.

It’s terrific when those individuals carry on running the business post-acquisition—something earnouts are designed to ensure—but it’s not always the case. A founder who’s made $10 million at the age of 35 (and increasingly in their 20s rather than their 30s) may or may not be motivated to continue. There has to be succession planning in place to mitigate that risk, and more than succession planning, there has to be a credible “parachute in” plan in case the business leader decides to step out in circumstances other than a structured transition over time.

Specialisms and client concentration—good and bad

Some of these agencies can often be buried deep in a particular niche within a specialist sector or have found success with a specific formula or service model. A dollar of revenues from a tobacco producer or arms manufacturer has never carried the same value as a dollar from healthcare, but acquirers also assess quality of earnings through the lens of their own clients and teams. Agencies with clients in certain geographies may not be welcomed, just as we see buyers nervous about petrochemical clients and those at odds with ESG and DEI imperatives.

Buyers looking for consistency of revenue will also want to know that the source of that income isn’t going to dry up because the business is so deeply focused on a single area of expertise. Which leads to another potential red flag: client concentration. Some buyers will get twitchy when an acquisition target has more than 15% of its revenue tied up with a single client, where the loss of that client could wipe out most of the profits. But on the other hand, some turbo-charged businesses actually make their name by working with a particular brand that in some cases may account for as much as 60-70% of revenue.

It’s an interesting dilemma, because some clients translate as “crown jewels.” A business that saw massive growth because it worked with the likes of Google, Coca-Cola or Nike might only be attractive to buyers because of that household name. Or an extreme dependence on a specific global client might actually present such extraordinary synergies and growth opportunities for the right kind of acquirer that it becomes the key deal driver.

Where growth can destroy margins in the short term

The next red flag is where the founders or leadership teams were probably so busy taking advantage of huge revenue opportunities they didn’t have a chance to introduce cost controls and structures to manage it—meaning margins were negatively impacted in the short term. Even where cost controls are in place, they might appear not to be. Most significant account wins need upfront “investment” from the agency to onboard the client, and that investment will hit results before revenues are running at full tilt, even if the payback on the client investment happens over several years in the future.

A focus on international growth, for example, might see a collection of international offices opening up, each of which has its own finance function with all the associated inefficiencies and duplications. Costs can spiral simply because the leadership team never had the time, ability or inclination to stop to assess the implications of key decision-making. That spiraling might appear to be borne from a lack of control but equally might be a deliberate investment strategy with a short-term hit for long-term gain. 

That negative can be presented as a positive; a suite of international offices run by senior teams locally mitigates against a perceived overdependence on the founders in the home market and ticks the succession planning box. 

Are we moving up or down the growth curve?

A buyer will want to know where a target business finds itself on the growth trajectory—is it still soaring skyward or is it slowing down?

It can be difficult to price deals when growth to date has been so explosive. But if you take the example above of a business that has gone for international expansion early on, investing ahead of revenue, a future acquirer will be able to take advantage of the growth that should follow that investment.

When it comes to revenue projection modeling, most buyers will be unimpressed by what are often unrealistic assumptions about how much new business an agency thinks it can win. The historical pipeline might tell a better story if it shows how the business built and converted its client portfolio in the past; unfortunately, most agencies tend to be poor at keeping this kind of data. Much better to focus instead on showing that the agency has a clear plan and track record of expanding revenue from its existing client base, rather than unsubstantiated aspirations to break into new sectors.

The skill in understanding a buyer mindset

Potential acquirers of fast-growth businesses want precedent and industry benchmarks to work with. What they don’t need are second- or thirdhand insights. 

It’s also important to understand just how receptive the buyer actually is to risk—because every fast-growing business will probably have at least one of those red flags waving. Some buyers want steady income and low-risk acquisitions, but others are more prepared to push the boat out. 

There are many factors to consider that create a story worth telling. Does a U.K. buyer understand the nuances of margin performance for a U.S. agency, where margins of 40% are commonly cited, in sharp contrast to what they’ll be used to? To be honest, it can even be where the founders seem “too coached” when they meet with a buyer team looking for honest, unguarded conversation. 

In the end, it comes down to whether an acquirer wants an agency with scale and growth, and if so, understanding that it inevitably comes with risks attached. Most of those challenges can be mitigated by identifying the nature of the buyer’s appetite for risk and matching it with the right kind of business. That’s where the magic happens.

https://www.adweek.com/agencies/red-flags-to-watch-when-buying-a-fast-growing-agency/




EssenceMediacom Officially Launches After a 9-Month Wait


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It’s been nine months since WPP announced more consolidation inside GroupM, with its largest and perhaps best-known agency, MediaCom, merging with the digital performance marketing agency Essence. Today, that merger is finally complete, and EssenceMediacom is in business.

The agency’s U.S. CEO, Jill Kelly, has coined Jan. 31 the agency’s Founder’s Day, she told Adweek. Employees will celebrate its formal launch annually “in perpetuity,” she added. It’s one way Kelly is solidifying a distinct culture at EssenceMediacom, despite an oversaturated media agency ecosystem.

But there is a ways to go. Formalizing the agency’s brand is a mammoth task. This most recent WPP agency consolidation makes EssenceMediacom GroupM’s largest agency, with about 10,000 employees spanning 120 offices worldwide.

The agency’s client roster reflects its size and includes Adidas, Airbnb, Bayer, Dell, EY, Google, Mars, NBCUniversal, Procter & Gamble, Signet, Target, The Coca-Cola Company and Uber. And, the agency managed to retain the PlayStation account, which went into review last year after GroupM announced the merger.

This merger and others, like 2017’s MEC and Maxus union that created Wavemaker, are WPP’s effort to simplify a complex subsidiary ecosystem that confused clients. Consolidation also made practical sense for Essence and MediaCom, since the two were already working together to service the Google, Mars and NBCUniversal accounts at the time GroupM announced the merger.

“The fusion of Essence’s measurement and data-driven DNA with MediaCom’s scale and strategic expertise creates something truly unique in the marketplace,” Christian Juhl, global CEO of GroupM, said in a statement.

More integrated solutions

This combination prevents clients from having to choose between GroupM sister agencies, according to Kelly. “Clients are seeking more integrated solutions. It’s really as simple as that,” she said.

Kelly, who comes to the U.S. CEO role from the CMO position at GroupM, is focusing on integration as she develops the new agency’s brand. She classifies MediaCom and Essence as having each been pioneers in their areas of expertise—linear television buying and digital media. The concept of being pioneering, or entrepreneurial, will be part of the agency’s brand.

But numerous logistical changes must be made as the large organization comes together. Just this weekend, it migrated its web domain to one referencing the combined name. Now, it’s revamping its organizational chart to ensure consistency across titles and career progression plans.

“An ideal state is that any employee on any given day will know exactly what discipline they are aligned with, they’ll know exactly what client they’re aligned with, they’ll know who they report to, and they’ll know what they’re accountable for doing,” said Kelly.

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Discord Adds Gas to Its Tank

Discord acquired Gas, a teen-focused, poll-based social media application that enables friends to share compliments with each other. Terms were not disclosed.

Gas will continue as a standalone app, and its team will join Discord to help the messaging platform continue to grow across its core audience, as well as attract new audiences.

Discord wrote in a blog post, “Gas is all about uplifting and empowering each other through positive affirmations. Its tremendous success shows the opportunity that exists in creating a playful yet meaningful place for young people. Gas’ founders have a proven track record of creating exciting apps and experiences, and we’re thrilled to work with their team to take things to the next level.”

Gas described how it works on its App Store page:

  1. Join your school.
  2. Add friends.
  3. Answer polls.
  4. Get flames when picked.

Digital and mobile intelligence provider Sensor Tower said that since debuting last summer, Gas has tallied some 7.4 million installs.

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Morning Brew Acquires Short-Form Video Firm Our Future


Business publisher Morning Brew announced its acquisition of audio and video startup Our Future, which produces short-form business content on platforms, as part of the publisher’s bid to broaden its appeal to younger, business-focused audiences. The financial details of the deal were not shared.

The Axel Springer-owned publisher plans to expand Our Future’s short-form video series to longer-form video content and podcasts. The company’s primary focus was podcasting when it started at the beginning of the pandemic in 2020. The company shifted to creating short-form videos in 2021 and has accumulated more than 1 billion views on platforms such as TikTok and YouTube. Popular videos include a breakdown of how FTX’s founder Sam Bankman-Fried tried to help Elon Musk buy Twitter with more than 120,000 views on TikTok and how mathematician and billionaire hedge fund manager Jim Simons broke the stock market, with more than 130,000 views on the platform.

Morning Brew will also help build Our Future’s agency services, which the startup used to create social-first content for brands like HubSpot and StartEngine, as another revenue stream outside of video ads.

“Bringing Our Future under our umbrella increases our reach on social platforms while expanding our audience into Gen Z,” Morning Brew chief executive officer Austin Rief said in a statement. “I am also excited about the potential of taking Our Future’s expertise in short-form video and working with big brands to help them grow their audiences.”

As more young people get their news from short-form video platforms (74% of those aged between 18 and 34 get their daily news from YouTube and TikTok, per the American Press Institute), more publishers are beefing up their video chops. Last week, The Arena Group acquired Fexy Studios, expanding its video footprint. Adweek recently reported BuzzFeed Inc. produced more than 5,000 editorial videos distributed on Instagram Reels, YouTube Shorts and TikTok in Q3 2022 where views grew 60% compared to Q2 2022. In Vice Media’s case, revenue from vertical and social video grew 40% year over year with Story Studio rolling out this year, Vice’s internal app that lets its staff and freelancers create Vice-like vertical videos.

While the industry is under economic turmoil due to a looming recession, digital media companies are having to make hard decisions about where to make cuts and where to invest. Last month, Morning Brew cut 14% of its staff. In November, Axel Springer-owned tech and media company Protocol was shut down entirely, affecting 60 jobs.

Despite these cuts, Morning Brew said in a statement it’s set clear intentions to expand through mergers and acquisitions, Our Future being one of them.

“The media landscape is evolving and we believe the future is turning non-media companies into media companies,” Our Future co-founder and chief operating officer Simran Sandhu said in a statement.

Morning Brew did not disclose figures on the acquisition.

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