REPORT: Ford pushes ad agency to cancel bid for Chrysler work
Chrysler isn't happy with its current marketing partner BBDO, and the Auburn Hills, MI-based automaker has put the word out that it would like some fresh perspective. Among the suitors vying for the $1.1 billion account is Grey, a London-based ad agency under the ownership of holding company WPP. Grey was reportedly scheduled to pitch their new ideas to the Pentastar on September 22nd, but the agency seems to have hit a Tsunami-sized snag.
WPP is the agency of choice for Ford Motor Company, and Ad Age says the nations 11th largest advertiser isn't keen on the idea of sharing its resource with its cross-town rival. If this story is true, we're sure WPP wasn't all to happy with the Blue Oval, but when you spend $1.9 billion per year on advertising, you tend to have a bit of pull with your suppliers. And if you spend that much money, why would you want to share your ad company's creative talent with a competitor? Chrysler's ad deal with BBDO runs through January of 2010.
[Source: Ad Age]
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Reader Comments (Page 1 of 2)
jrhmobile 9:46AM (9/18/2009)
If WPP wants Chrysler/Fiat business so bad, they can "fire" Ford Motor Company and solicit the business.
What? they don't want to give up nearly $2 billion in revenues? Then they can live with the consequences of being bound by Golden Handcuffs. I don't blame Ford for its attitude on this one bit ... if I was in the same position, I'd dump WPP in a heartbeat.
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Steve 10:44AM (9/18/2009)
Umm, that's $2 billion in exclusive no-bid contract business. There's got to be a clause in there somewhere backing up Ford's actions.
C.W. 10:53AM (9/18/2009)
Ford absolutely has the upper hand here and WPP would be STUPID to eff this up.
Especially considering the recovery track Ford is on.
Paul 3:12PM (9/18/2009)
These commenters are phenomenally ignorant:
First, the $2 billion is NOT "revenue." That's the budget they spend on advertising. The agency gets a tiny fraction of that as revenue through a fee. Second, WPP is a holding company, not an agency. They own J. Walter Thompson, Ford's agency of 80 or so years. They also own Grey Advertising, which wants to pitch Chrysler. The only overlap exists at the boardroom of WPP.
This is pretty typical stuff but Ford appears to be playing "jealous girlfriend" given the distance between totally different agencies. Either way, strategic clients like Ford get what they want.
Matt 9:48AM (9/18/2009)
My God is Ford arrogant. Who do they think they are?
Screw Ford...WPP can do business with whom they want.
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John 10:32AM (9/18/2009)
Wrong. This is a conflict of interest and Ford has every right to raise the issue. It's like Coke and Pepsi having the same ad agency. They are undoubtedly privy to information about new products well before it is introduced to the general public and you don't want that going on with a company who is also handling a chief competitor.
BluePariah 10:39AM (9/18/2009)
Agreed. This is a serious COI issue. During my time with BBDO I learned that one of the few things the auto companies did take seriously was industrial espionage of any type.
They'll drop the bid. The Ford contract is not worth losing over the Chrysler one. Trust me.
Though, I don't suppose we can expect a guy who clearly hates Ford to really understand the intricacies of this arrangement...
Alex 11:57AM (9/18/2009)
Matt, you are completely correct, they can do business with anyone they want. Likewise, Ford can choose to NOT do business with anyone then want. But lets think about this. What is in WPP's best interest? Sticking with a near $2 billion contract that they have with Ford or pitch their company to Chrysler without any sort of guarantee that 1) they win the contract and 2) no guarantee Chrysler will be able to afford as much in ad dollars as Ford.
Don't be stupid.
N 9:51AM (9/18/2009)
$2 billion for producing crappy advertisements... holy crap! I am in the wrong business!
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Aprime 11:41AM (9/18/2009)
Ford ads are bad now?
I guess it's not the same agency producing the ones for Canada because the touch they're using is giving me chills.
Anything that gives me chicken skin gets a thumbs up.
CHINO 1:06PM (9/18/2009)
Have you seen any of Ford's digital work or do you just like to make broad statements with no backup? Ford is one of the biggest spenders on digital marketing and their work has won many design and interactive awards over the last few years.
http://www.fordvehicles.com/the2010mustang/
http://www.fordvehicles.com/f150raptor/
And for the record...I think their truck commercials are as good or better than any others out there. The Toyota real life (over the top) tests are the only other commercials I can think of that have been any where near as well done.
alex 9:54AM (9/18/2009)
what's ridiculous is that ford's contract with wpp only lasts a few more months. are they really supposed to turn down chrysler when they don't even know if ford will be their client in a few months?
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Judy Zik 10:58AM (9/18/2009)
You have to know when to hold 'em and know when to fold 'em. This was a pretty dumb gamble. They have likely lost ground with Ford over this but lucky for them by raising an objection Ford is making it pretty clear that they are likely to renew.
GML 10:23AM (9/18/2009)
2 billion for unmemorable commercials with Mike Rowe?? Hey Chrysler... Instead of the usual Mike Rowe or Howie Long commercials, or the ones that flash "cash back" or "1.9% Financing" all over the screen... Hire some foreign ad agencies that are actually original and push the envelope. Let's be honest, what do you have to lose?
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Epyx 11:27AM (9/18/2009)
You mean like the"foreign" London-based ad agency that Ford is using and Chrysler wants?
Read the article dumbass.
Alex 11:58AM (9/18/2009)
I quite like the Ford commercials with Mike Rowe.
NS 12:15PM (9/18/2009)
Epyx - that was mighty brutal, and equally funny ... lol
skicat 10:46AM (9/18/2009)
U are all commenting on a business u know nothing about. What none of you understand is the concept of "conflict." It is well-established in the marketing communications industry for decades that if you have one major client in a product category, then you do not work for another major client in same business. Period. Coke would never allow it's agency to work for Pepsi, nor Nike for Adidas. It's the fault of the major ad agency holding companies. All the agencies that were independents and could vie for big fish like Ford and Chrysler are now owned by huge holding companies. For example, WPP owns, ad agencies J. Walter Thompson, Ogilvy & Mather, Young & Rubicam, and Grey, direct-marketing giant Wunderman and PR giant Hill & Knowlton, as well as several other marketing communications companies, most of which work for Ford. Because WPP bought up all these companies over the last 3 decades and cultivated a huge, lucrative relationship with Ford, they are out of the running for Chrysler. That's the way the cookie crumbles.
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monkeykat2 10:47AM (9/18/2009)
I see a good episode of Mad Med based on this.
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monkeykat2 10:47AM (9/18/2009)
errr... Mad Men