Dive Brief:
- WPP's Wunderman arm has partnered with corporate-backed startup incubator and accelerator Founders Factory, according to a joint news release.
- The deal gives the digital agency early access to the program's startup companies as well as the technology and talent being developed. Wunderman will, in turn, assist Founders Factory in building and launching new companies.
- "Founders Factory was developed to tackle a common problem within big business — how to innovate internally," Henry Lane Fox, Founders Factory CEO, said in a statement. "We are committed to building and scaling over 200 new businesses over the next five years. Wunderman and their clients will not only provide expert marketing advice but also numerous commercial opportunities for our startups."
Dive Insight:
As many agencies come under fire for not innovating fast enough, especially in the digital space, Wunderman is clearly putting a foot in the door to emerging technology and talent that might help it keep ahead of the competition and provide a better read on the pulse of important trends. On the other hand, startups are usually too young, inexperienced and small to develop comprehensive marketing strategies and branding, and will likely value the consulting from a big-name WPP shop.
Marketers views on being directly involved or sponsoring startup incubator and accelerator programs are mixed at best, as such initiatives often see few successes and can be a huge drain on time and resources. Coca-Cola, for example, dropped its Founder's Program accelerator at the beginning of this year, though it still runs a separate commercialization program called The Bridge that's seen success. The Disney Accelerator Program just announced its fourth class as well, with an eye toward providing the media and entertainment giant a pipeline into the next generation of innovators.
The Founders Factory news comes as WPP — the largest ad holding group in the world — is simplifying its structure to improve workflow and better meet clients' needs. Earlier this month, it was reported the company has plans to fold its Possible Worldwide agency into Wunderman, and it recently restructured its GroupM portfolio.