WPP shares rise as it bags bumper Intel account
Shares in WPP rose more than three per cent this morning after Intel selected one of the ad giant’s companies as its global creative agency of record.
VMLY&R is set to take the lion’s share of Intel’s global creative account, which is estimated at $1.4bn (£1.1bn), according to industry sources.
The deal, which is thought to be one of the largest in recent years, will see other WPP agencies work with the chipmaker across its brand, products and partner marketing.
It comes as a welcome boost to the holding group, which last week suffered its biggest daily share price drop in three decades after disappointing fourth-quarter results.
WPP has been left reeling from a string of major client losses in North America as well as tough competition from tech giants and consultancies, and has set out a transformation plan under new boss Mark Read in a bid to return the company to growth.
The group has offloaded a number of fringe businesses, most notably its $4bn (£3.2bn) sale of a majority stake in Kantar to Bain Capital.
VMLY&R was formed in 2018 following the merger of VML with Y&R — one of Read’s first major moves as chief executive.
“Intel is a brand synonymous with innovation worldwide and we are delighted that a WPP team has been entrusted with the next stage of its creative transformation,” Read said in a statement.
“The fusion of VMLY&R’s outstanding creativity and technology expertise with WPP’s talent-focused, on-brand design and global production is very powerful. It’s great to see how well global clients are responding to our integrated offer.”
Intel will retain WPP rival Dentsu Aegis as its global media agency.