WPP, the world’s largest advertising group, expects 2017 to be a year in which winning accounts at any cost will become paramount to survival. WPP owns a number of agencies in SA, including Ogilvy, J Walter Thompson, Y&R and Grey. In a note to its 2016 preliminary results WPP says: "There have been several examples recently of major groups being prepared to offer clients upfront discounts as an inducement to renew contracts, heavily reduced creative and media fees, extended payment terms, unlimited indirect liability for intellectual property liability and cash or pricing guarantees for media purchasing commitments." WPP says these practices cannot last and will eventually result in poor financial performance and further industry consolidation.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.