Home  › Marketing › Strategies
microsoftimage

Microsoft Hands Its Global Ad Business to Dentsu and IPG

  |  May 2, 2014   |  Comments

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.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Yuyu Chen

Yuyu Chen is a junior 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.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Jobs

    • SEO Specialist
      SEO Specialist (NJM Insurance Group) - West TrentonNew Jersey Manufacturers Insurance Company is an industry leader among its peers and the largest...
    • Paid Search / Search Engine Marketing (SEM, PPC) Specialist
      Paid Search / Search Engine Marketing (SEM, PPC) Specialist (HeBS Digital) - New York  JOB TITLE:        ...