Facebook’s relationship with Mindshare looks set to come to an end after the WPP-owned agency withdrew from the tech giant’s global media agency review.
Dentsu, also a Facebook owner, remains in contention with Havas Group and Publicis Groupe, according to the The Wall Street Journal, which first announced that WPP’s media buying arm, Group M, was withdrawing from the review.
Facebook’s “request for strict contractual terms” had contributed to the withdrawal decision, the WSJ noted.
A Facebook spokesperson said Countryside“We have partnered with Mindshare for the global media planning and buying of our brand portfolio since 2014 and are proud of all we have been able to accomplish together.
“We are sorry that Group M has decided to withdraw from the tender process. However, we look forward to continuing to partner with their talented team as we move forward with our review of global media capabilities.
Group M told the WSJ“While we are not participating in the review, we are looking to future opportunities by building on the successful work we have created together since 2014.”
There was no comment on contract terms, but it’s common for a client and agency to negotiate on issues such as data control and guarantees on media pricing.
Facebook’s review, which launched in March, is managed by ID Comms.
According to research consultancy Comvergence, the account is worth $750m (£545m).
Facebook increased its total global ad spend in 2020 by 44% to $2.26bn (£1.64bn), unlike Amazon, Google and Netflix, which all cut spending.
Mindshare is currently defending a number of other major accounts, including Unilever.
Group M, the world’s largest advertising buyer, prides itself on having Google and Facebook, the world’s two largest media owners, as media clients and dealing with them as media suppliers.
After winning Facebook as a client in 2014, Group M took over Google as a client in 2015 through its acquisition of Essence, which is Google’s digital agency.
WPP agencies have also handled other tasks for Facebook and its affiliates in the past. Instagram nominated Ogilvy for creative work in 2019.
WPP will continue to spend billions of dollars annually on behalf of clients who advertise on Facebook, which made $84 billion in ad sales in 2020.
