Merger or mess?: WPP kills Wunderman Thompson brand after merger with VMLY&R to form VML

WPP has merged two of its top creative agencies Wunderman Thompson and VMLY&R. The newly formed agency VML will be headed by Jon Cook as its CEO and Mel Edwards as global vice president. However, is this a good move from the world's largest ad holding company?

Back in 2018, J. Walter Thompson (JWT) merged with digital agency Wunderman to form Wunderman Thompson. JWT had completed over nine decades of operations in India before the merger, having started in India in 1929 and globally in 1864. It set up shop at the Taj Mahal Hotel in Mumbai, primarily to handle the General Motors account.

After the inception of Wunderman Thompson, a lot of industry experts said that the agency "lost the plot" after its merger, having failed to achieve a balance between its digital and traditional advertising strategies. WPP had already merged Y&R and VML. The broad idea behind the merger was to propel JWT India into a more digitally savvy future. However, the decision seemed to have created internal fissures, leading to not only the loss of key talent but also some clients.

Wunderman Thompson was essentially straddling two spaces – brand and legacy that JWT stood for and the digital prowess and tech that Wunderman is globally known for.

Over the years, its heritage as a creative heavyweight has been eroded as some senior talent stepped away. Their departure led to the loss of deep knowledge and understanding on big accounts that had created a sense of trust among clients.

“To get good work done you need a pipeline of good talent and look after them. If you lose your clients and people, what’s left? The challenge that big agencies are facing is regaining their relevance,” said ad veteran and former JWT South Asia CEO Colvyn Harris.

Last year, Rediffusion managed to edge out Wunderman Thompson in bidding for contracts a couple of times, said managing director Sandeep Goyal.

“We beat them on the BMW and Tata Power pitch in close succession in a couple of months. We obviously felt extremely good because beating Thompson was never easy. Being able to get the better of them on large accounts gave me the feeling that either we are extremely good or they are not as good as they used to be,” he said in an earlier interview with Storyboard18.

Goyal started his career with Hindustan Thompson Associates (which became JWT in 2002) in 1986. He recalled HTA being the “University of Indian Advertising” where some of the best minds in servicing, account management and creative worked. He said that somewhere, over the years, the charisma of the people leading Thompson gradually waned.

We had earlier written about the slow demise of the JWT brand after multiple rebrandings and here’s the final nail in the storied brand’s coffin - Wunderman Thompson and VMLY&R forming VML.

Tarun Chauhan, former managing partner and senior vice-president, JWT Mumbai said, “This is an unending saga with most advertising brands globally: but this WPP mess is seriously deep. Imagine killing a brand like JWT. It was an advertising brand known for building iconic brands. Wunderman is not an advertising brand….. Now this mouth-full. This slide is quick and fast. Holding companies have stock valuations and are doing stuff like this. They forget agencies have clients who love the agency brand they engage with.”

Bobby Pawar, ex chairman and chief creative officer of Havas India shared, "They say all good things come to an end. That’s not always true. Sometimes they are brought to an end, in the hopes of a great new beginning. My heart and mind are torn about this. I lament the disappearance of two storied brands JWT and Y&R. And I worry that the hype is missing something. When two entities merge all things don’t add up. Some are subtracted. But you know, the folks who decided this are very intelligent and experienced people so I am not going to stand in judgement of this move. History will do that for us."

Dr. Sandeep Goyal, chairman, Rediffusion said, "WPP has killed three storied brands and replaced it with an unknown one. They must have their reasons but these are obviously not reflective of the local reality in India. I began my career at Thompsons nearly 40 years ago. Sad to see the brand fade into oblivion. WPP has erased millions in brand equity - any case neither my decision, nor my problem!"

Ad veteran Agnello Dias, former co-founder and chief creative officer, Taproot India and former chief creative officer at JWT India shared, “I’m sure I wouldn’t be the first or last to say that some of the defining moments of many advertising careers played out in the corridors of JWT. Mine were marked by highlights, both for the agency and myself. And together we created the kind of records that can never actually be broken. JWT was a rite of passage for many and I could feel the lofty legacy of the legends that stalked those corridors as I burrowed down and got to work. It is indeed the end of era.”