WPP's Amazon win: What it means for the Indian market

WPP scored a major win last week, securing Amazon as a new client. On September 4, Amazon transitioned its global media account after a competitive review from IPG to Omnicom Media Group (OMG) and WPP.

While OMG will handle the account in the Americas, WPP will manage it across the EMEA and APAC regions. Amazon views this decision as a strategic move to leverage the strengths of both agencies. The account's total value is around $5 billion, though the exact share of the Indian market remains unconfirmed. However, neither agency has made an official announcement yet.

India plays a pivotal role in Amazon's global strategy, driving the e-commerce giant's growth in critical verticals like e-commerce and Prime Video. WPP, which has long been a market leader in India’s advertising landscape, will manage Amazon’s media operations in the country. With a vast network and deep integration into the local market, WPP is uniquely positioned to handle Amazon’s complex advertising needs across the region.

This win not only highlights WPP’s strength in APAC but also highlights its expertise in India, a country that is increasingly critical to Amazon’s global ambitions.

WPP’s financial performance reflects its strong foothold in India. As per the agency’s H1 2024 financials, while the ‘rest of the world’ segment saw a 2.2% decline in Q2, India posted robust growth of over 9%.

The growth though was outweighed by a decline of 24.2% in China on client assignment losses and persistent macroeconomic pressures, it is important to note that India still showed positive growth, standing out compared to other markets.

With Amazon awarding its media account for the EMEA and APAC regions to WPP, the Indian market is expected to see further growth.

The report also mentioned how GroupM, WPP's media planning and buying arm, continues to hold the top position in key markets like India, China, Japan, Germany, and the UK, maintaining its status as the world’s largest media agency network.

India’s significance in Amazon's global operations cannot be understated, with the region continuing to play a critical role in the e-commerce giant’s growth.

The bulk of Amazon's advertising spend is funnelled into its e-commerce business, including key verticals like Amazon Fresh and Prime Video.

WPP’s other key clients in India span a wide range including the likes of Unilever, for which it handles significant media planning and advertising, as well as P&G, Nestlé, and ITC.

WPP also works closely with Google and Amazon, managing their advertising and digital marketing efforts in the region.

As for Omnicom, a media planner familiar with the account commented, "In the short term, there might not be much action in India. However, in the long term, strategies and learnings from India could be exported to markets like Latin America, which share some cultural similarities with India."

While global media pitches are typically managed at a high level, they do have a ripple effect on individual markets like India. Local performance and the value an agency can deliver remain critical factors in determining success.

As per media planners, global brands tend to favour agencies deeply rooted in key markets.

“For instance, WPP’s stronghold in Asia, especially in India, coupled with its established presence in Europe, gives it a competitive advantage over other agencies,” another planner said.