WPP Beats Rivals To Win Global HSBC Media Account
WPP has seen off competition from rival advertising heavyweights Interpublic Group and Omnicom to secure the global media contract for HSBC, believed to be worth around $600 million.
The deal is a result of a wide-ranging review by HSBC designed to consolidate its business with one marketing services organisation. WPP will now create a dedicated team to deal with the account, drawing upon the combined resources of the group.
The agencies creating material for the account will include J Walter Thompson, Red Cell, Bates Asia and Batey for creative advertising work. Group M will take over the account for media buying, which was formerly held by Publicis Groupe’s ZenithOptimedia. Rmg:connect and 141 Worldwide will handle direct marketing activity and Landor will be responsible for branding and corporate identity.
HSBC will continue to use the familiar ‘World’s local bank’ strapline, which was devised by incumbent Lowe. However, the account will now be overseen by WPP’s global client leader, Toby Hoarewith, who will have ultimate responsibility for all marketing communications delivered by WPP companies to HSBC.
Commenting on the appointment of WPP, Peter Stringham, group general manager of marketing for HSBC said: “As the world’s second largest financial services company, HSBC is keen to integrate its marketing more effectively, apply brand and communications strategies consistently and to maximise synergies and cost-effectiveness across the Group.”
The appointment came to be a harsh blow to Lowe’s parent company, Interpublic, as the HSBC account represents a sizeable income for the firm. Interpublic has had a troubled few months, reporting a loss of $102.5 million for the fourth quarter of 2003 earlier this year and showing no sign of an upturn in business (see Publicis Looks Strong, Whilst Interpublic Slumps).
Meanwhile, WPP is experiencing strong growth and recently announced the launch of its third-string media network, Maxus Global, to resolve several of its current conflict assignments. The company has also revealed an increase in revenues for quarter one 2004 of nearly 6% with chief executive Martin Sorrell predicting a steady 3-4% growth during 2004 (see WPP Unveils Maxus Global As Third Media Network).
WPP: 020 7408 2204 www.wpp.com
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