Breaking: WPP to Merge Enfatico, Dell's (Former) One-Stop-Shop Marketing Agency

Adamo campaign

From WSJ:

The move is a retreat from one of the most ambitious projects on Madison Avenue -- an effort to eliminate turf wars by housing many different marketing disciplines within a single firm. The structure was one of WPP's key selling points when it landed Dell's advertising and marketing business in December 2007.

Enfatico will continue to exist, but it will operate as a division of Y&R, and Y&R Advertising also will work on the Dell account, the people familiar with the matter say.

Torrence Boone, Enfatico's CEO, will report to Y&R Brands Chief Executive Peter Stringham, according to a person familiar with the matter. Mr. Boone had previously reported to Martin Sorrell, WPP's chief executive. A spokeswoman for Young & Rubicam Brands and a spokesman for WPP both declined to comment.

A Dell spokesman wouldn't comment on Enfatico's realignment but did say Dell was seeking to tap additional WPP resources.

Not that this should come as a particular surprise to anyone who's been reading the writing on the wall—or on the blogs, in this instance. The agency, which sought to consolidate some 850 accounts across the globe that had previously handled various and sundry aspects of Dell's marketing and advertising needs, seemed plagued with difficulties from the beginning, launching a mere handful of campaigns in the past year and a half since it was initially announced in December 2007—most recently, their campaign for Dell's new haute-computing line, Adamo, was received with lackluster response. In late February, the agency cut 8 percent of its workforce, including the managing director of its Austin office. Adding insult to injury, the rumor mill was abuzz earlier this week that Dell had already begun shopping around for a company; Dell was mum on the matter.

[WPP Merges Agency Built for Dell]