WPP Production’s triple-bid row: The industry responds

When WPP announced WPP Production in January, it prompted plenty of discussion about what bringing the group’s production capabilities together under new branding would mean for independent companies. 

As our industry responses at the time made clear, competition, collaboration and client choice were already high on the agenda.

Now, extracts from an internal document reported by Campaign have brought those issues back into focus. The published passages suggest that, where a client or creative team requires three bids, WPP Production should consider whether it can supply all three internally. Different approaches, locations and director treatments could be offered, while “keeping the work entirely within WPP Production”, according to the extracts.

In a statement to shots, WPP rejected suggestions that WPP Production misleads clients or undermines fair competition, saying: “Selectively quoting from a comprehensive document doesn’t fairly reflect what is a completely transparent process.” WPP added that it respects competitive bidding, works with independent production companies, and follows client contracts and procurement requirements.

As you might expect, LinkedIn hasn’t been short of opinions on the subject. To explore the implications, shots invited production company leaders and trade bodies to share their take on the published extracts, their potential impact on the industry and WPP’s response: 

James Brook Partridge, Head of Production, WPP Productions UK

"We held the internal launch of our new 33,000 square foot studio in London’s East End this week. Unfortunately, the week has been dominated by another story. Let me be clear: there are no WPP mandates requiring work to be internalised, and I completely reject any suggestion that work is undertaken without clients’ knowledge. 

Our approach is entirely client-led and transparent. Clients have robust production policies, overseen by external consultants, and we speak to them constantly. How work is delivered is currently high on their agendas. The reason is straightforward: clients now need to produce vastly more content than before — three times as much over the past three years, and potentially five- to 20-times as much over the next two — at greater speed and without significantly larger production budgets. 

We are entering a period of profound change, which requires an open conversation about how work is produced.

The models we have relied on for years will not meet this demand. We are entering a period of profound change, which requires an open conversation about how work is produced. Our studios are designed to help clients address this challenge. They complement, rather than replace, the wider third-party production community, whose role remains essential. The right production strategy will depend on the needs of each client and brief. 

 On triple bidding, I think the industry would acknowledge that doing it by default for every project is not always the best use of time or resources. I have discussed with many production company owners the possibility of a single bid from one company, involving more than one director. This would preserve choice while ensuring the company’s investment is recognised. I have never had a production company tell me it would prefer a triple bid. Finally, I understand that these issues are emotive, but behind every company are people who care deeply about their work. Everyone pays a price when mud is thrown around. I've seen the open letter from the AICP, APA and EPA and would welcome a discussion should they want to get in touch."

Tracey Cooper, Partner & EP, Riff Raff Films

"What does the leaked news form WPP mean for relationships between agencies and production companies? Well, if I wanted to be combative (and I do. It's been a long week) it does, at least, mean the gloves are finally off. The constant battle between creative curation and corporate consolidation, the unambiguous squeeze on the independent market, is now out there for all to see. To be honest, I am kind of glad the hybrid era has now gone. It was murky, awkwardly unpleasant and obviously only ever a gateway move to lubricate the final play. 

The constant battle between creative curation and corporate consolidation, the unambiguous squeeze on the independent market, is now out there for all to see. 

Our friends, producers and creatives who work in WPP will no doubt continue to try and find ways to circumnavigate the alleged edict, many will leave. Some production companies will be forced to loan their directors out - there was not enough work to go around even before the script output from WPP was withheld -  most will resist. The relationships between the top agencies, the boldest brands and the strongest production companies will remain solid and produce the best, most effective, work. At least, I hope so. 

Regardless, I look forward to instantly forgetting the output created by the WPP echo chamber. Hopefully, when the cheap, uninspired white noise fails to give meaningful returns to the brands we, the independent production companies, will still be here. Developing the pipeline for diverse, groundbreaking filmmaking talent, delivering on screen value and creating meaningful, respectful partnerships with agencies and clients."

Above: James Brook Partridge [left], Steve Davies and Tracey Cooper. 

Steve Davies, Chief Executive Officer, APA London 

"It's a brazen attempt to pull the wool over their clients’ eyes and put their agencies' interests ahead of their clients. The free market allows independent companies — home to the best directing, producing, editing and VFX talent — to deliver the best value. That is what has made UK advertising great: strong agencies bringing their planners and creatives together with independent production companies to make great work for advertisers. 

There will be no savings from centralising work within WPP, because the key driver of savings — genuine competition — is missing. 

The triple bid is central to that system. Independent companies compete on treatments and price, and with an oversupply of directing and production talent, that competition delivers maximum value. Steering clients away from this isn't in their interest. And three internal WPP bids aren't a triple bid — they're a way of making clients believe they're getting competition when they're not. 

There will be no savings from centralising work within WPP, because the key driver of savings — genuine competition — is missing. I hope clients see through this and push WPP to rethink, returning to a model where agencies' creatives and producers work with the free market to secure the best work at the best price."

Medb Riordan, Global Managing Director/Executive Producer, Academy Films 

"Well, honestly, this is not a huge shock, is it? It’s outrageous, it’s ridiculous, but totally not surprising. WPP have had a rotten couple of years, and so there is a sense that they will try anything to get that bottom line working for them and their shareholders again. I understand there are some clients out there who, due to the size of their operation, aren't necessarily driven by who directs, who edits, who creates the VFX,  but I still fail to see how this makes financial sense to them. Who actually benefits from a clearly fictitious three-way bid? Who is checking the homework? Where is the transparency for a client?

It’s outrageous, it’s ridiculous, but totally not surprising.

The fact the leak suggests they potentially need to somehow convince procurement or their clients clearly suggests that not everyone has walked into this high-fiving each other. Whether a brand is driven by unique creative output, standing out in the market place, or driven by metrics, data and financial efficiency, there is no way anyone can honestly say this is the best route forward."

Above: Medb Riordan and Eliot Liss.

Eliot Liss, Head of Production, IPA 

"These quotes are a distorted misrepresentation of a local document that in its true context reflects creditable business development in service of clients. The idea that clients are presented with three bids from an agency that masquerade as coming from three independent production companies is simply not true.  

Agencies never make final decisions about who delivers productions - clients always make those decisions.

Agencies never make final decisions about who delivers productions - clients always make those decisions. Agencies developing their production capabilities and commercial opportunities is good for client choice and additive to the UK advertising production space. Agencies are creative businesses first and last, employing people with passion, craft and client service in their bones."

Charlie Crompton, Creative Business Consultant 

"It’s so obvious why they’re trying to pull this one off. We all get the business side of it; you’re told to cut thousands of staff and you think that the only way to futureproof yourself is keep every dollar you can in the Mothership and hope that the work is good enough so that clients don’t leave. This is a wholly depressing strategy for everyone involved, and I’m sure that they know it’s not going to work, but the juggernaut is already rolling down the hill.   

The thing that they’re forgetting (apart from the fact that their clients will see through this in a heartbeat - being desperate is not a strategy) is that if you want to be successful, and be a place that people want to work for and with, you need to make great work. Work that people talk about even if they’re not your target audience. Don’t chase the money, chase the craft, and do anything you can to get the very best craftspeople to collaborate with you, to add their magic and to make your precious idea better than you ever dared to imagine.   

The thing that they’re forgetting... is that if you want to be successful, and be a place that people want to work for and with, you need to make great work. 

There’s certainly some genuinely good talent on the open market now, but it's nothing like having an invested production company in your trench who will go above and beyond to make something special. It’s a fact that if you have three independent bids for your work, you will be getting the best value imaginable. And you’ll also be lucky enough to get the very best talent in the world to make it with you. You should be gnawing off your arms to work with people like this. 

I do feel some sympathy for the people at WPP who are tasked with tying to sell this. They’re smart people, but they’re backed up against the wall, and I’m sure that they don’t believe in it any more than we do. What they should be laser-focusing on, is keeping all that precious creative talent that they still have from hatching a plan to escape. These creatives want to make the brilliant work they were hired for, and to do that, they need all the resources that those independent agencies have. You know, the ones who are winning all the awards.  

This plan is not the way forward. Keep your staff, keep your clients, keep them happy, and stop them all wanting to leave. You’ll do this by allowing them to make the best work, the kind that reminds everyone why they got into this business in the first place. And the by-product is that you’ll find that you've saved money too."

Above: Charlie Crompton and Matt Miller. 

Matt Miller, President & CEO, AICP

"Over the past few years, holding companies have continued to grow their in-house production and post entities. AICP has warned advertisers of efforts by these entities – who remain in the role of 'agent' for production, while simultaneously competing in the same arena – that they will be conflicted in presenting the marketer with the best options.

What it means to the production community is that creative coming out of WPP agencies will be filtered from the free marketplace and not see its true potential.

WPP is clearly articulating how to use their position to bolster this business entity (now 10,000+ employees) not as a service to marketers, but in service to their overhead and own shareholders, first and foremost – which is inevitable in this structure. 

What it means to the production community is that creative coming out of WPP agencies will be filtered from the free marketplace and not see its true potential. That is a lose-lose for the production and post companies, and for the advertisers."

Tom Webb, Co-Owner & Managing Director, Park Village

"Having been an independent production company for over 50 years, we’ve seen enormous change in this industry. We’ve adapted to new technologies, new models and new ways of working. Change is inevitable and, often, healthy. But this feels fundamentally different.

[This] doesn’t feel like progress. It feels like something worth standing up against.

If you’re choosing the bidders, setting the terms and ultimately awarding the work to yourself, can you really claim to be offering clients genuine choice or best value? You can’t be both judge and jury when your own balance sheet benefits from the verdict. A triple bid where all three bids come from the same company isn’t competition, it’s the appearance of competition. Independent production companies are an essential part of a fair and competitive process. They bring genuine choice, independent creative thinking and transparent market value. Removing them from that process doesn’t just threaten independent production; it fundamentally undermines the system that is supposed to ensure the best idea, talent and value wins.

Taken to its logical conclusion, it paints a fairly dystopian picture of where our industry could be heading: a handful of enormous organisations controlling the creative process, the production process, the bidding process and ultimately deciding for themselves what represents ‘best value’. After 50 years of change, competition and reinvention, that doesn’t feel like progress. It feels like something worth standing up against.”

Above: Tom Webb [top] Kelly Bayett and Dave Knox.

Kelly Bayett, Co-Founder & Managing Partner, Love Song 

"The beauty of the advertising industry lies in the stories we get to tell. The work that defines culture, sparks conversation, and moves the needle only exists when the right idea and the right creative partners come together to make something that resonates. Processes like triple bidding exist to protect the work, giving brands a say in which partners will best service the story as well as the budget. 

WPP has completely missed the point of advertising and has lost sight of how to actually serve their clients by becoming singularly focused on making money. Providing all bids themselves and deceiving clients into keeping the work in-house is not only immoral and, in some places, illegal, but it's also, unfortunately, not a new issue. The DOJ investigated holding company production practices a decade ago, and these companies still find ways to incentivise keeping work in-house. Incredible. 

WPP has completely missed the point of advertising and has lost sight of how to actually serve their clients by becoming singularly focused on making money.

Production and post companies are not just executional vendors, we are trusted collaborators and homes for directors, editors, artists and producers who lead with craft, vision and a unique creative eye that elevates the work. Thinking about how we move forward from here, we have two real options. Either we continue to turn a blind eye to the holding companies and the work becomes watered down and less impactful. (Horrible choice if you ask me. I hate this one.) Or, we expose what's happening, inform brands of these deceptive practices, advocate for fair bidding and actual transparency in the production process, and enact real change. This feels like the only way forward to not only serve our clients properly, but also to create work that people actually care to watch and not just scroll past."