WPP and Publicis on alert as P&G brings in W&K for global task

by Joe Lepper, Brand Republic 24-Jun-05, 08:55

NEW YORK - Alarm bells are ringing at Publicis Groupe and WPP Group as Procter & Gamble brings in Wieden & Kennedy to handle global advertising for its Eukanuba pet food brand, replacing its roster agency Saatchi & Saatchi.

According to reports in the US media, the move is being seen as the first sign that Publicis Groupe's Saatchi & Saatchi and P&G's other rostered agency in the US, WPP Group's Grey Global, may be loosening their grip on the FMCG giant's advertising work.

The firm could also bring Omnicom BBDO Worldwide into the fold because the agency already works for Gillette, which has agreed to be acquired by P&G.

The move would represent a major shake-up for long-standing P&G agenices at Publicis and WPP. When WPP bought Grey last year, the US group's hold on P&G was one of the key factors in making the deal so attractive for WPP.

WPP is attempting to win more P&G business and extend its relationship with the consumer goods giant beyond Grey and last month it established Team Procter to focus on P&G. It drafted in 12 high-profile executives across its network whose mission it is to bring in more P&G business, including Tamara Ingram as part of her appointment as UK group CEO at Grey.

However, P&G has made clear that Saatchi & Saatchi will continue to work for it on other brands, including Iams and Head & Shoulders.

It is understood that Wieden & Kennedy has also won project work for P&G's Ivory soap brand. It has also been reported that Dan Wieden, Wieden & Kennedy president, has advised P&G's global marketing officer Jim Stengel on marketing issues.

Earlier this month, it emerged that P&G was cutting back on television advertising in the US. The firm, which is the biggest advertiser in the US, looked to be slashing advertising on cable television by as a much as a quarter during the upfront season, when airtime advertising is negotiated ahead of new programming.

However, there is also speculation the firm may have reduced its upfront commitment because it is holding out for prices to fall.

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