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Transportation equipment industry

Ford Motor Company Shakes Up Agency Roster in Europe, Awards $175-$225 Million Contract to Y&R Advertising

Strategic Insights

— 2 min read

The Ford Motor Company has made a significant move in its European advertising strategy, transferring a substantial portion of its business to Young & Rubicam Advertising from Ogilvy & Mather Worldwide. The transfer involves five key accounts, including the Ford Fiesta, Ford Ka, Ford Explorer, Windstar mini-van, and the Ford corporate-image assignment for Europe. The latter is expected to grow to as much as $90 million with the introduction of a new campaign. This shift is part of a broader reorganization of Ford's advertising strategy, aimed at simplifying and clarifying the roles and responsibilities of its advertising agencies.

Key Takeaways:

  • The Ford Motor Company has reorganized its European agency roster, awarding a $175-$225 million contract to Young & Rubicam Advertising from Ogilvy & Mather Worldwide.
  • The transfer includes five key accounts: Ford Fiesta, Ford Ka, Ford Explorer, Windstar mini-van, and the Ford corporate-image assignment for Europe, valued at up to $90 million.
  • The move is part of Ford's effort to simplify and clarify its advertising strategy, providing a consistent message about its products across Europe.
  • This is not the first time Y&R Europe has handled Ford accounts in Europe; they had previously worked on the Galaxy minivan account in 1994, followed by assignments for Cougar, Puma, and the Lincoln division.
  • Ogilvy Europe will continue to handle some Ford accounts, including Escort, Mondeo, and Ford's commercial vehicles, as well as media buying for Ford of Europe through Mindshare, a media agency owned by WPP.
  • In the United States, Y&R Advertising handles the Lincoln-Mercury division for Ford, while Ogilvy is the Ford corporate agency, responsible for the image campaign introduced in May that carries the theme "Better ideas. Driven by you." Ford division vehicles are handled by J. Walter Thompson, another Ogilvy sibling.

Statistics:

  • The Ford Motor Company's agency roster transfer involves a contract valued at $175-$225 million.
  • Five key Ford accounts are being transferred to Young & Rubicam Advertising: Ford Fiesta, Ford Ka, Ford Explorer, Windstar mini-van, and the Ford corporate-image assignment for Europe.
  • The Ford corporate-image assignment for Europe is expected to grow to as much as $90 million with the introduction of a new campaign.
  • Over 18-24 months, Ford will replace the Escort with a new model named Focus, with estimated billings of $100 million.

Sources:

  • Advertising Age, The Daily Fax edition (date not specified)
  • Campaign, a British trade publication (date not specified)
  • Brandweek (date not specified)
  • Ford Motor Company press release (date not specified)
  • Philippe Mellier, Vice President for Marketing, Sales, and Service at Ford of Europe (quotation not dated)
  • Kevin King, Account Managing Director for Ford of Europe at Y&R Europe (quotation not dated)

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