GroupM explained

GroupM
Type:Private
Predecessors:-->
Founders:-->
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Hq Location City:New York City, New York
Hq Location Country:United States
Areas Served:-->
Profit:-->
Profit Year:-->
Owners:-->
Num Employees:41,000[1]
Parent:WPP plc

GroupM is a U.S. based media investment group of the multinational Holding company WPP plc. GroupM is the world's largest media buying agency, as of 2023.[2] [3]

GroupM's headquarters are located at 3 World Trade Center, in Lower Manhattan, and the company has subsidiaries in Asia, Australia, North America, and the Europe, Middle East and Africa (EMEA) region.

Businesses associated with GroupM include Essence Global, Mindshare, Wavemaker, as well as the defunct media agency Maxus. GroupM's EssenceMediacom is the world's largest media agency network.

GroupM was highlighted in a US House Judiciary investigation in which documents show that GroupM has colluded behind the scenes to use its ad buying power to force advertisements be pulled from social media. Their email signatures include a rainbow GroupM logo and Black Lives Matter.

History

WPP plc formed GroupM in 2003 to unite Mediaedge:CIA and MindShare Worldwide.[4] [5]

In 2015, GroupM began requiring all media partners to acquire anti-piracy certification from the Trustworthy Accountability Group.[6] In 2019, GroupM formed a coalition to help brands reach multicultural audiences.[7] The company has a diverse media advertisement investment goal of five percent; an initial goal of two percent Black-owned media, set in 2021,[8] was expanded in 2023 to include AAPI, Hispanic, and LGBT media.[9]

Following the acquisition of Twitter by Elon Musk in 2022, GroupM deemed Twitter a "high risk" platform.[10] GroupM removed the classification in 2023, when Linda Yaccarino was named Twitter's chief executive officer (CEO) and the two companies collaborated on a brand safety project.[11]

In 2022, GroupM debuted a carbon calculator to determine an advertisement's carbon output. The company also partnered with Good-Loop to launch an initiative to reduce the environmental impact of advertising spending. GroupM was the first agency holding group in Australia to offer carbon offsetting.[12] [13] The company formed a decarbonization coalition with 20 clients in 2022,[14] and improved the calculator's accuracy in 2023.[15]

In 2023, GroupM removed made-for-advertising sites (MFAs) from its programmatic businesses.[16] The move "[set] a precedent" for the advertising industry, according to Digiday, and was an expansion of work by the company's team in the U.K., which maintained a list of approximately 6,000 domain names that were not MFAs.[17] GroupM has also launched an initiative to help brands invest in quality journalism.[18]

On November 28, 2023, WPP was fined for the third time for illegal advertising when the Authority of Broadcasting and Electronic Information issued a Decision on administrative sanctions against WPP MEDIA LIMITED (GroupM).[19]

Operations and organizational structure

GroupM's 15-floor, 700,000-square-foot headquarters are located at 3 World Trade Center, in Lower Manhattan. Prior to consolidation, GroupM had offices at multiple locations in Midtown, for various brands.[20]

Irwin Gotlieb was CEO from GroupM's founding until 2012,[21] when he became global chairperson until 2018.[4] [22] Subsequent CEOs included Dominic Proctor and Kelly Clark.[23] Christian Juhl was appointed global CEO in 2019.[24]

Subsidiaries

GroupM has subsidiaries in Asia, Australia and New Zealand,[12] the Europe, Middle East and Africa (EMEA) region,[25] North America,[26] and the U.K.[27] In 2017, GroupM acquired a majority stake in MediaCom India, a joint venture established in 2007 by GroupM India and the Madison Media group's principal shareholder Sam Balsara.[28] GroupM North America has approximately 6,000 employees and $17.6 billion in media investment billings in the U.S. and Canada, as of 2020–2022.[29] [30]

GroupM restructured management in 2016, in an attempt to consolidate media investment and platform services.[31] In 2017, a reorganization eliminated the agency Maxus, transferring operations to Essence and MEC (now known as Wavemaker).[32] GroupM continued with five media agencies,[33] until 2022, when the company merged some of them to streamline operations.[34] Essence and Mediacom merged to form EssenceMediacom, and Mindshare absorbed Neo.[35] EssenceMediacom is GroupM's largest agency and the world's largest media agency network,[36] with approximately 10,000 employees in 120 offices. The business manages advertisement billings of approximately $21 billion annually.[37]

GroupM Entertainment was established in 2009 and later became Motion Content Group. It expanded into the U.S.,[38] and was rebranded as GroupM Motion Entertainment in North America in 2023. The business partnered with Warner Bros. Discovery to support GroupM's Diverse Voices Accelerator.[39]

WPP had merged 24/7 Media into Xaxis in 2013.[40] In 2023, WPP acquired the London-based agency Goat, which was merged with GroupM's influence unit Inca to operate under GroupM Nexus.[41]

External links

Notes and References

  1. https://www.campaignasia.com/article/india-grows-media-spends-by-5-in-2022-comscore-report/485267
  2. News: Davey . James . Retail media ad revenue forecast to surpass TV by 2028 . . June 12, 2023 . 2023-09-26 . 2023-06-24 . https://web.archive.org/web/20230624135042/https://www.reuters.com/business/retail-consumer/retail-media-ad-revenue-forecast-surpass-tv-by-2028-2023-06-12/ . live .
  3. News: Joseph . Seb . Scanlon . Krystal . November 14, 2022 . The world's biggest media buyer GroupM is telling advertisers that Twitter is a 'high risk' media buy . . live . September 26, 2023 . https://web.archive.org/web/20230501192911/https://digiday.com/marketing/never-been-critical-twitters-ad-boycott-is-starting-to-look-like-a-long-goodbye/ . May 1, 2023.
  4. News: Oster . Erik . April 6, 2018 . Former GroupM CEO Irwin Gotlieb Steps Down as Global Chairman After 19 Years With WPP . . . live . September 26, 2023 . https://web.archive.org/web/20221105051908/https://www.adweek.com/agencies/former-groupm-ceo-irwin-gotlieb-steps-down-as-global-chairman-after-19-years-with-wpp/ . November 5, 2022 . 0199-2864.
  5. News: April 17, 2003 . WPP Creates Division to Unite Agencies . . live . September 26, 2023 . https://web.archive.org/web/20230926152201/https://www.nytimes.com/2003/04/17/business/media/wpp-creates-division-to-unite-agencies.html . September 26, 2023.
  6. News: Johnson . Lauren . GroupM Singles Out Piracy Websites as Marketers' Next Ad-Fraud Headache . Adweek . live . 2023-09-26 . https://web.archive.org/web/20230722141808/https://www.adweek.com/performance-marketing/groupm-singles-out-piracy-websites-marketers-next-ad-fraud-headache-167090/ . 2023-07-22.
  7. News: Smiley . Minda . GroupM Is Forming a Coalition to Help Brands Better Reach Multicultural Audiences . Adweek . September 19, 2019 . September 26, 2023 . February 6, 2023 . https://web.archive.org/web/20230206041725/https://www.adweek.com/agencies/groupm-is-forming-a-coalition-to-help-brands-better-reach-multicultural-audiences/ . live .
  8. News: Lepitak . Stephen . GroupM Continues Diversity Drive With Media Inclusion Initiative . Adweek . May 11, 2021 . September 26, 2023 . January 19, 2023 . https://web.archive.org/web/20230119105113/https://www.adweek.com/agencies/groupm-continues-diversity-drive-with-media-inclusion-initiative/ . live .
  9. Steinberg . Brian . March 9, 2023 . GroupM Offers Plan to Expand Investment in Diverse Media . live . . . 0042-2738 . 810134503 . https://web.archive.org/web/20230328113629/https://variety.com/2023/tv/news/groupm-oplan-to-expand-investment-in-diverse-media-1235547564/ . March 28, 2023 . September 26, 2023.
  10. News: Clark . Mitchell . November 14, 2022 . Buying ads on Twitter is 'high-risk' according to the world's biggest ad agency . . . live . September 26, 2023 . https://web.archive.org/web/20230726231246/https://www.theverge.com/2022/11/14/23459254/twitter-high-risk-ads-groupm-advertisers-content-moderation . July 26, 2023.
  11. News: Murphy . Hannah . Thomas . Daniel . May 18, 2023 . Twitter no longer 'high risk' after new chief hired, says top ad group . . live . September 26, 2023 . https://web.archive.org/web/20230724073627/https://www.ft.com/content/1412d474-bd47-40be-a0a8-7f349b10e997 . July 24, 2023 . 0307-1766.
  12. News: Ward . Miranda . July 26, 2022 . GroupM to offset digital ads as part of Alpha plan . . . live . September 26, 2023 . https://web.archive.org/web/20230201091055/https://www.afr.com/companies/media-and-marketing/groupm-to-offset-digital-ads-as-part-of-alpha-plan-20220706-p5azkb . February 1, 2023 . 1131035760.
  13. News: Bürgi . Michael . GroupM wants to lead the industry on decarbonization efforts — will other media agencies follow? . Digiday . July 20, 2022 . September 26, 2023 . March 22, 2023 . https://web.archive.org/web/20230322164353/https://digiday.com/media/groupm-wants-to-lead-the-industry-on-decarbonization-efforts-will-other-media-agencies-follow/ . live .
  14. News: Morley . Olivia . Lundstrom . Kathryn . GroupM Pulls 20 Clients Onboard Its Media Decarbonization Coalition . Adweek . November 10, 2022 . September 26, 2023 . February 2, 2023 . https://web.archive.org/web/20230202144715/https://www.adweek.com/agencies/groupm-20-clients-media-decarbonization-coalition/ . live .
  15. Calculator improvements:
  16. News: Barber . Kayleigh . Bürgi . Michael . Shields . Ronan . GroupM is removing MFAs from its inclusion lists . Digiday . August 21, 2023 . September 26, 2023 . August 21, 2023 . https://web.archive.org/web/20230821115844/https://digiday.com/media-buying/groupm-is-removing-mfas-from-its-inclusion-lists/ . live .
  17. News: Barber . Kayleigh . July 24, 2023 . How GroupM's inclusion list decides which publishers it sells programmatically . Digiday . live . September 26, 2023 . https://web.archive.org/web/20230802151210/https://digiday.com/media-buying/the-rundown-how-groupms-inclusion-list-decides-which-publishers-it-sells-programmatically/ . August 2, 2023.
  18. News: Weissbrot . Alison . GroupM launches tool to help brands invest in quality journalism . . 2023-09-26 . 2023-03-16 . https://web.archive.org/web/20230316022403/https://www.prweek.com/article/1814993/groupm-launches-tool-help-brands-invest-quality-journalism . live .
  19. Web site: baochinhphu.vn . 2023-11-29 . Công ty WPP bị phạt lần thứ 3 trong năm do vi phạm kinh doanh quảng cáo . 2024-02-13 . baochinhphu.vn . vi.
  20. News: Baird-Remba . Rebecca . How GroupM Created an Office in World Trade Center for Nine Different Companies . . January 29, 2019 . September 26, 2023 . March 28, 2023 . https://web.archive.org/web/20230328153903/https://commercialobserver.com/2019/01/how-groupm-created-an-office-in-world-trade-center-for-nine-different-companies/ . live .
  21. News: Sanders . Lisa . February 28, 2005 . GroupM's Gotlieb Again Rebuilding Media Model . Ad Age . .
  22. Irwin Gotlieb:
    • News: Graham . Megan . GroupM's Irwin Gotlieb Retires as Global Chairman, Becomes Advisor to WPP . Ad Age . April 6, 2018 . September 26, 2023 . December 5, 2021 . https://web.archive.org/web/20211205215042/https://adage.com/article/agency-news/groupm-s-irwin-gotlieb-stepping-global-chairman-remains-advisor/313017 . live .
    • News: Chamikutty . Preethi . The man who saw tomorrow: Irwin Gotlieb, GroupM . The Economic Times . June 23, 2010 . September 26, 2023 . September 26, 2023 . https://web.archive.org/web/20230926152206/https://economictimes.indiatimes.com/the-man-who-saw-tomorrow-irwin-gotlieb-groupm/articleshow/6079799.cms?from=mdr . live .
  23. News: Bruell . Alexandra . 2016-09-22 . GroupM Brings Back Kelly Clark as Global CEO . en-US . The Wall Street Journal . 0099-9660 . 2022-01-24 . https://web.archive.org/web/20220124011657/https://www.wsj.com/articles/groupm-brings-back-kelly-clark-as-global-ceo-1474559176 . live .
  24. News: Bruell . Alexandra . WPP Names Christian Juhl Global CEO of GroupM, Powerful Ad-Buying Unit . . July 23, 2019 . September 26, 2023 . July 1, 2021 . https://web.archive.org/web/20210701074727/https://www.wsj.com/articles/wpp-names-christian-juhl-global-ceo-of-groupm-powerful-ad-buying-unit-11563875760 . live .
  25. Lepitak . Stephen . GroupM's EMEA CEO Demet İkiler Joins Publicis Groupe . Adweek . January 23, 2023 . September 26, 2023 . March 1, 2023 . https://web.archive.org/web/20230301110705/https://www.adweek.com/agencies/groupms-emea-ceo-demet-ikiler-joined-publicis-groupe/ . live .
  26. News: Harris . Rebecca . August 11, 2023 . GroupM Canada CEO on making advertising better, for everyone . . . live . September 26, 2023 . https://web.archive.org/web/20230926152527/https://nationalpost.com/news/groupm-canada-ceo-on-making-advertising-better-for-everyone . September 26, 2023 . 1486-8008.
  27. News: Lepitak . Stephen . GroupM's Karen Blackett Promoted to President of WPP UK . Adweek . September 12, 2022 . September 26, 2023 . September 26, 2022 . https://web.archive.org/web/20220926132412/https://www.adweek.com/agencies/groupms-karen-blackett-promoted-to-president-of-wpp-uk/ . live .
  28. News: Tewari . Saumya . GroupM acquires majority stake in MediaCom India . Mint . January 25, 2017 . September 26, 2023 . January 26, 2021 . https://web.archive.org/web/20210126033901/https://www.livemint.com/Companies/AI2AAJLbkmKUfhQofs9TYN/GroupM-acquires-majority-stake-in-MediaCom-India.html . live .
  29. News: Steinberg . Brian . Kirk McDonald Will Become North American CEO of GroupM . Variety . August 18, 2020 . September 26, 2023 . May 18, 2021 . https://web.archive.org/web/20210518102430/https://variety.com/2020/tv/news/kirk-mcdonald-groupm-advertising-media-xandr-1234738840/ . live .
  30. Major . Derek . GroupM North America CEO Kirk McDonald to Be Honored at Black Enterprise's Black Men XCEL Summit . . October 7, 2022 . September 26, 2023 . January 27, 2023 . https://web.archive.org/web/20230127102826/https://www.blackenterprise.com/groupm-north-america-ceo-kirk-mcdonald-to-be-honored-at-black-enterprise-black-men-xcel-summit/ . live .
  31. News: Stein . Lindsay . Poggi . Jeanine . GroupM Buying Chief, TV Ad Vet Rino Scanzoni, Takes New Role in Restructuring . Ad Age . November 14, 2016 . September 26, 2023 . March 8, 2018 . https://web.archive.org/web/20180308081722/http://adage.com/article/agency-news/groupm-s-rino-scanzoni-steps-back-buying-role-amid-reorganization/306734/ . live .
  32. News: Bruell . Alexandra . Media Agency Veteran Rob Norman to Retire From WPP . The Wall Street Journal . November 20, 2017 . September 26, 2023 . June 6, 2023 . https://web.archive.org/web/20230606211722/https://www.wsj.com/articles/media-agency-veteran-rob-norman-to-retire-from-wpp-1511135877 . live .
  33. News: Rittenhouse . Lindsay . January 8, 2018 . WPP's GroupM Shifts U.K. CEO to New Position as Global Chief Investment Officer . Adweek . live . September 26, 2023 . https://web.archive.org/web/20201130212129/https://www.adweek.com/agencies/wpps-groupm-shifts-u-k-ceo-to-new-position-as-global-chief-investment-officer/ . November 30, 2020 . MEC was formerly a media agency network owned by GroupM. In June, WPP combined its MEC and Maxus networks to create a single media, content and tech agency, Wavemaker, operating as one of five media agencies under GroupM..
  34. News: Morley . Olivia . Inside Recent Changes at WPP's GroupM: What the EssenceMediacom Merger Means . Adweek . May 3, 2022 . September 26, 2023 . April 7, 2023 . https://web.archive.org/web/20230407160240/https://www.adweek.com/agencies/inside-recent-changes-at-wpps-groupm-what-the-essencemediacom-merger-means/ . live .
  35. News: Steinberg . Brian . WPP's GroupM Merges Media Agencies in Bid to Streamline . Variety . April 26, 2022 . September 26, 2023 . March 23, 2023 . https://web.archive.org/web/20230323154348/https://variety.com/2022/tv/news/groupm-wpp_streamline-media-agencies-1235241065/ . live .
  36. Bonilla . Brian . January 31, 2023 . EssenceMediacom Launches as the World's Largest Media Agency Network . Ad Age.
  37. News: Farooqui . Javed . GroupM's top agency sees big potential in Indian market . The Economic Times . June 10, 2023 . September 26, 2023 . July 12, 2023 . https://web.archive.org/web/20230712140929/https://economictimes.indiatimes.com/industry/media/entertainment/media/groupms-top-agency-sees-big-potential-in-indian-market/articleshow/100903999.cms . live .
  38. News: Hayes . Dade . WPP-Owned Motion Content Group Rebrands As GroupM Motion Entertainment In North America, Shifting Toward Premium Content . . February 22, 2023 . September 26, 2023 . April 1, 2023 . https://web.archive.org/web/20230401152423/https://deadline.com/2023/02/wpp-motion-content-group-rebrands-groupm-motion-entertainment-1235266577/ . live .
  39. News: Bradley . Bill . Warner Bros. Discovery and GroupM Partner to Amplify Diverse Voices . . March 6, 2023 . September 26, 2023 . April 4, 2023 . https://web.archive.org/web/20230404022036/https://www.adweek.com/convergent-tv/warner-bros-discovery-groupm-partner-diverse-voices-accelerator/ . live .
  40. News: Bruell . Alexandra . WPP Merges Xaxis with 24/7 Media in Bid for Scale in Programmatic Ads . Ad Age . December 3, 2013 . September 26, 2023 . February 10, 2023 . https://web.archive.org/web/20230210072117/https://adage.com/article/agency-news/wpp-s-latest-scale-play-xaxis-merges-24-7-media/245493 . live .
  41. News: Lepitak . Stephen . WPP Scales Influencer Marketing Offer With the Acquisition of The Goat Agency . Adweek . March 22, 2023 . The acquisition will see Goat join GroupM and merge with its current influencer marketing offer INCA....

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