Facebook’s relationship with Mindshare is expected to end after the WPP-owned agency withdrew from the tech giant’s global media agency review.
Dentsu, which is also the incumbent operator of Facebook, remains in contention with Havas Group and Publicis Groupe, according to the The Wall Street Journal, who first announced that WPP’s media buying arm, Group M, was withdrawing from the review.
Facebook’s “demand for strict contractual clauses” had contributed to the withdrawal decision, the WSJ noted.
A Facebook spokesperson said Countryside: “We have partnered with Mindshare for global media planning and buying across our brand portfolio since 2014 and we are proud of all we have been able to accomplish together.
“We are sorry that the M group has decided to withdraw from the tendering process. However, we look forward to continuing to partner with their talented team as we move forward in our review of global media capabilities. “
Group M told the WSJ: “Although we are not participating in the review, we are looking at future opportunities building on the successful work we have created together since 2014.”
There was no comment on contract terms, but it is common for a client and an agency to negotiate on issues such as data control and media pricing guarantees.
The Facebook review, launched in March, is being managed by ID Comms.
According to research consultancy Comvergence, the account is worth $ 750million (£ 545million).
Facebook increased its total global ad spend in 2020 by 44% to $ 2.26 billion (£ 1.64 billion), unlike Amazon, Google and Netflix, all of which cut spending.
Mindshare is currently defending a number of other major accounts, including Unilever.
Group M, the world’s largest advertising buyer, is proud to have Google and Facebook, the world’s two largest media owners, as media clients and to deal with them as media providers.
After winning Facebook as a client in 2014, Groupe M took over Google as a client in 2015 through the acquisition of Essence, 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, who achieved $ 84 billion in ad sales in 2020.
