Group M agencies to centralize budgets starting 2024

Group M, a member of the WPP conglomerate, has revealed that starting in 2024, its agencies EssenceMediacom, Wavemaker, MSix & Partners, and Mindshare will no longer manage their individual budgets.From the outset, Group M has consistently operated under a country-level profit and loss model. However, a significant change is underway, marking the first instance where budgets and resources will be assigned on a country-by-country basis. Christian Juhl, the Global Chief Executive, recently announced this transformation within Group M. Under the new structure, agency heads will maintain their responsibility for client growth and profitability, but they will now have additional time to concentrate on strategic initiatives and the creation of efficiencies across the entire group.Since assuming the role of CEO in October 2019, Juhl has been dedicated to streamlining Group M's operations, aiming to transform the group into something resembling a software company. In this envisioned structure, technology is centralized to provide individual agencies with improved access.As part of the restructure, EssenceMediacom (including EssenceMediacom X in the UK) will be established, and Group M's global performance marketing division, Nexus, will undergo reorganization into two distinct groups: expert practices and media solutions. These changes are intended to provide support to the client-facing agencies.It's noteworthy that Group M's restructure aligns with a similar process undertaken by rival agency Publicis Groupe, which has also transitioned to a model where the UK serves as a platform for divisions across Europe.