Y&R, Office Depot Go Their Separate Ways

Agency and Client Cite 'Evolving Marketing Needs' as Reason for Split

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After less than three years working together, Y&R and Office Depot are parting ways.

The WPP agency and marketer in a joint statement late today said the split was a result of "evolving marketing needs," and noted that Office Depot has not yet announced its plans concerning a new agency. A request for further comment was not immediately returned, so it is not yet clear if the retailer is conducting a review for the business.

Y&R picked up the account in September 2008 after a review -- and at the time the agency's U.S. operations were faring much better than they are now. Since then, Y&R has struggled with a number of account losses, including Dr Pepper Snapple Group, MetLife, Hilton Hotels a chunk of Dell's business. In addition, it is currently defending in a review for Accenture.

Hamish McClennan, Y&R's former CEO, told Ad Age recently that those losses accounted for only a small percentage of the network's overall revenue. Still, the loss is another setback just as new CEO David Sable -- a former top WPP executive who is highly respected around the holding company and in the industry -- is trying to right the ship.

In 2010, Office Depot spent $60 million on U.S. measured media, according to Kantar. That's down from the $78 million in U.S. measured media it spent at the time it moved its account to Y&R, according to Kantar.

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