Microsoft is taking steps to consolidate its global ad business by choosing just two companies to work with.
In an effort to move forward with the concept of "One Microsoft," the tech giant has decided to hand its global ad and media business to just two holding companies - the Interpublic Group (IPG) and the Dentsu Aegis Group (Dentsu).
IPG shops, including McCann Worldgroup, The Martin Agency, and Erwin Penland, will take creative responsibilities for the company's traditional, direct, and digital ads. McCann will play a big role, as it will also manage the global distribution of Microsoft ads. Previously, WPP shops Wunderman and Possible, as well as Publicis' Razorfish and independent Omelet, among other agencies, supported these tasks.
Dentsu, on the other hand, will now manage Microsoft's media planning and buying, and search advertising. In 2011, Microsoft moved its North America media-buying account from IPG's UM to Publicis' Mediavest. And since then, the company's media business was mainly split between IPG's UM (overseas) and Mediavest (U.S.).
We reported in January of this year that Microsoft had started reviewing its agency contracts across the board, as part of its "One Microsoft" strategy, an initiative by the company's former chief executive (CEO) Steve Ballmer. The philosophy behind Ballmer's idea was to get all Microsoft's operations under one brand.
So early this year, four holding companies - IPG, Dentsu, Publicis, and WPP - each pitched Microsoft, and Dentsu and IPG emerged victorious.
This consolidation also comes hot on the heels of an executive shake-up in Microsoft's marketing department. Chris Capossela has succeeded the company's former executive vice president of marketing, Tami Reller, as the new chief marketing officer. Previously, Reller with the assistance of Mark Penn (the man behind Bill and Hillary Clinton's presidential campaigns), led the company's marketing strategy. This follows the earlier appointment in February this year of Microsoft's new chief executive, Satya Nadella.
It seems that under Capossela's leadership, Microsoft is moving forward with a more centralized marketing approach. Or in Baller's words, "one strategy, united together."
Image via Shutterstock.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
Yuyu Chen is a reporter at ClickZ. Her work has appeared in Local East Village, New York Daily News and Brooklyn Chamber of Commerce website. Yuyu received her M.A. in Business and Economic Reporting from New York University in May, 2013.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.