SAN FRANCISCO: Longtime Yahoo! agency of record Niehaus Ryan Wong has taken itself out of the race for the portal's reported dollars 2 million account.
The announcement arrives amid rumors of a Fleishman-Hillard victory in the heated Yahoo! pitch, which has been going on since early February (Ogilvy and Ketchum are also believed to be in the running). However, NRW principal Ed Niehaus maintained that the ongoing search was only one of several reasons the firm decided to resign the account, which the agency has held for five years.
'The review process has been very detrimental to team morale,' he conceded. 'But the account had been unprofitable for a long time. It had grown huge, in the number of people working on it and resources devoted to them, without a commensurate increase in revenue.'
Also, Yahoo!'s expansion into new products and services 'limited our opportunities for new business, because of all the conflicts,' Niehaus said.
Even with the loss of its marquee client, NRW does not anticipate any layoffs. 'We have a significant number of new business opportunities already lined up and on board who are clamoring to work with the Yahoo! team,' said Niehaus.