Publicis wins $1.7 billion Mars advertising account from WPP

Publicis Groupe SA has won a major new client, snagging the $1.7 billion ad portfolio for M&Ms and Snickers owner Mars Inc. from WPP Plc, people familiar with the matter said.

The French company will handle media, production and paid social media and influencer ads for the US-based consumer goods group after winning one of the largest competitions of the year, the people said, asking not to be identified discussing terms of the deal that are not public. 

In a statement, Mars confirmed the appointment of Publicis and said that Interpublic Group of Cos.’s Weber Shandwick would oversee public relations, “with both agencies tasked with bringing culture and conversation even closer to the portfolio of iconic brands at Mars.”

WPP declined to comment. AdWeek reported on the value of the contract earlier. 

The loss of the Mars account is the latest blow for London-based WPP, which said on Monday that Chief Executive Officer Mark Read would leave at the end of the year. WPP, once the largest ad agency globally, has been working on ways to reignite growth and streamline operations to address softening sales and a gloomy outlook. 

Publicis has managed to continue growing with other big client wins, such as Coca-Cola Co and Banco Santander SA, even as WPP’s market share has slipped and economic uncertainty hit ad spending. The company pivoted early to focus on digital and data-led marketing tools and is spending on deals to add capabilities for influencer marketing and data. 

Publicis shares gained 2.1% to €99.48 at 11:34 a.m. in Paris trading on Wednesday. The stock has declined 3.4% this year. WPP rose 0.1% to 553.80 pence in London and has declined 33% this year.