US rival replaces WPP on Ford advertising contract in major blow to chief executive Mark Read

Wil Crisp
Updated
Mark Read was appointed as chief executive of WPP in September following the controversial departure of long-time boss Sir Martin Sorrell - Tolga Akmen
Mark Read was appointed as chief executive of WPP in September following the controversial departure of long-time boss Sir Martin Sorrell - Tolga Akmen

WPP, the world’s biggest advertising agency, has lost its contract as lead advertising partner with the US-based automaker Ford, in a major setback for recently installed chief executive Mark Read.

The FTSE 100 company had been Ford’s lead advertising partner for more than seven decades, but will now be replaced by Omnicom Group’s BBDO.

The New York-based company is due to take over from WPP on Nov 1.

Ford’s decision to replace WPP came after a five month review by the London-based consultancy Flock Associates.

BBDO Worldwide president and chief executive Andrew Robertson said: “Today is a big big day. We have a wonderful new brand to help build.

“I could not be more proud of the hundreds of people around the world who made this happen, or more grateful to Ford for their confidence in us”.

While WPP will no longer be the lead advertising partner, it will continue to work with Ford in several roles including media planning and buying.

In a statement WPP said responsibilities would include “Tier Two advertising work in the US” as well as advertising operations in China and “all the Ford public relations business.”

The independent agency Wieden and Kennedy, which coined Nike’s “Just do it” slogan, will also work for Ford on selected projects.

WPP has suffered two turbulent years, with its share price plunging by more than 40pc since March 2017.

The advertising company has struggled amid increased competition from online innovators like Facebook and Instagram.

Mr Read was appointed as chief executive of WPP in September following the controversial departure of long-time chief executive Sir Martin Sorrell in April.

Sir Martin turned WPP from a small maker of wire baskets into one of the world’s biggest advertising companies.

In April he abruptly resigned after an accusation of personal misconduct.

WPP reportedly investigated allegations that he used company cash to pay for a sex worker, claims that Sir Martin has "strenuously" denied.