HSBC has awarded WPP its sole creative advertising, media, and direct marketing services worldwide duties, for a sum of approximately $1.07 billion dollars. The Wall Street Journal reported that Omnicom Group and Interpublic Group also vied for the right to represent the UK-based international bank, which opened the bidding up to holding companies, rather than individual companies within the holding company.
HSBC handles its PR in-house and does not expect to consider outside agencies in the "near horizon," according to company spokeswoman Caroline Mooney.
The account win is huge for WPP, which recently reported that its overall revenues grew 5.7% to $1.7 billion for this year's first quarter.
The Journal reported that an executive close to the account placed the loss to Interpublic and Lowe, the unit that until recently handled the account, at $10 million. Despite increasing revenues 6% during the first quarter to $1.4 billion, Interpublic Group posted a $16.9-million net loss for the first quarter of 2004, almost double its $8.6-million loss in the same period 2003. IPG recorded a net loss of $451.7 million in 2003, according to an earlier proxy statement.