Strict contract terms make WPP withdraw from Facebook’s agency review

Ending its seven years of association with Facebook, incumbent agency GroupM has decided to withdraw from the ongoing media agency review process for the social media giant. GroupM has been handling most of the global media planning and buying business of Facebook.

It is learnt that the reason for GroupM’s decision is the strict contractual terms drawn up by Facebook, which include the agency taking on greater liability. Usually, the contracts between agencies and marketers entail that the agencies are required to take on certain levels of liability or risk in case of issues around the ad-buying process.

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According to media reports, Dentsu Inc., Havas Group and Publicis Groupe SA remain in the fray for the business.

Facebook’s media mandate comprises media planning and buying across its entire business, including Instagram, Facebook, WhatsApp, and Messenger.

Meanwhile, GroupM will continue to handle Facebook’s global media planning and buying business till the review process concludes and a new agency is brought on board.