US telecoms giant Verizon has moved its $3bn plus US ad account to Ogilvy from McCann. Verizon spent $3.4bn in 2021 so the move will impoact both holding companies, WPP/Ogilvy and Interpublic/McCann. McCann has handled Verizon since 2015.
Verizon’s Kristin McHugh says: Ogilvy has proven to be a highly strategic creative partner. Since last year, we’ve been working in close partnership with the Ogilvy team to evolve our creative approach, leveraging powerful insights to illustrate our focus on providing value for our customers. We’re excited to be expanding this relationship further, and building on this success across the enterprise.”
Verizon CMO Diego Scotti announced he was leaving in May.
Daryl Lee, global CEO of McCann Worldgroup, wrote in a memo: “Last night, we were informed by Verizon that we will not be on their creative roster for 2024. This is bittersweet news as we had some of our best teams on Verizon over the years. To all the people who toiled on Verizon through the years we salute you and thank you for your service. Please know that we will be working hard in the coming months to find homes for our Verizon team on our growing list of clients.”
IPG has already made a number of redundancies, many at its digital agencies, as tech clients have cut back spending. This switch, as Lee acknowledges, will lead to many more.
It’s a feather in the cap for Devika Bulchandani, whotook over as global CEO of Ogilvy last year. She says: “It’s an honor to be expanding our relationship with one of America’s most iconic brands. We are invigorated by a shared ambition of using the exponential power of creativity to propel Verizon’s brand and business to new heights.”