Partnership Overview
The world's largest music rights company is joining forces with one of the largest advertising agencies globally.
Universal Music Group has forged a strategic alliance with WPP, a publicly traded multinational advertising and public relations company. This collaboration will primarily emphasize audience engagement strategies.
WPP, listed on the London Stock Exchange, is branded as a “creative transformation company” and operates a network of ventures in advertising, digital marketing, media planning, and market research.
Financial Highlights
WPP reported an income of £3.6 billion ($4.5 billion) for the third quarter of the calendar year (ending September 30), reflecting a growth of 4.1% y/y on an identical basis. UMG generated €2.870 billion (US$3.15 billion) in income during the same period across all divisions (including recorded music and publishing), representing 4.9% y/y growth in constant currency.
UMG and WPP assert that their partnership aims to “provide client brands with cutting-edge audience engagement strategies that harness the power of music.”
As announced on Thursday (December 12), this new partnership merges UMG's diverse family of artists and labels along with its global data and analytics team with WPP's “creative scale and extensive client network, offering brands fresh opportunities to connect with audiences through music.”
Innovative Collaborations
Moreover, WPP and UMG indicated they are jointly exploring “responsible ways for AI to assist brands and artists in creating authentic cultural moments.”
The announcement elaborated that “the partnership presents WPP clients with unique chances to connect with some of the world’s top artists and their music, as well as exclusive access to UMG’s iconic music catalog to uncover additional avenues for expansion through data-driven and technological innovation.”
This announcement builds on a history of successful collaboration between WPP and Universal Music Group For Brands (UMGB), including their ongoing partnership with The Coca-Cola Company.
Together, WPP and UMG have launched global initiatives such as the Coke Studio and Sprite Limelight music platforms.
“Music is becoming an even more powerful cultural force, and technology is transforming the way we experience it,” said Stefan Pretorius, CTO at WPP.
“Music is becoming an even more powerful cultural force, and technology is rewriting the way we perceive it.”
Stefan Pretorius, WPP
Pretorius further stated: “The partnership with UMG enables us to leverage the latest technology and data analytics to design truly groundbreaking music campaigns for our clients, shaping the future of brand engagement.”
“Additionally, collaborating with WPP will allow us to harness and amplify the unmatched power and reach of music for WPP clients and brands through new strategic initiatives and programs.”
Michael Nash, Universal Music Group
Michael Nash, chief digital officer and executive vice president of Universal Music Group, stated: “This collaboration benefits the stakeholders of both companies.
“On one hand, by integrating innovative technologies with UMG's industry-leading analytics, we can unlock significant new commercial opportunities for our artists and songwriters.
“Moreover, by working with WPP, we will amplify and enhance the unparalleled power and reach of music for WPP clients and brands through new strategic initiatives and programs.”
Universal Music Group inks strategic partnership with advertising giant WPP
