WPP has confirmed the merger of G2 Joshua and OgilvyAction to form what it claims will be the “largest activation agency in the world”, although it has admitted more mergers could follow.
The move follows the departure of G2 boss Tim Hipperson earlier this year and is likely to fuel speculation about whether he knew about the merger. He is due to join media agency Zenith Optimedia in May to head up the UK operation, following a period of ‘gardening leave’.
The two agencies appear complementary, with OgilvyAction specialising in shopper marketing, and G2 offering data, digital and direct marketing.
Ironically Hipperson’s successor, Sarah Todd, has a shopper marketing background. The management line-up has yet to be revealed but WPP said in a statement that the integration of people and resources has already begun. The merged entity will formally launch in May.
It is understood WPP hopes that by combining the two, WPP will be able to drive their specialist services more strongly in emerging markets. However, most observers believe the deal is financially motivated and, considering last week’s denials, they see an element of last-minute panic about the announcement.
The statement added: “There are ongoing discussions between G2, Ogilvy and other WPP companies about collaborating in a number of strategic areas.”
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