In a strategic move that has set the PR industry abuzz, global advertising giant WPP has announced the merger of two of its largest PR firms, BCW (Burson Cohn & Wolfe) and Hill & Knowlton, into a single entity named “Burson.” This merger, scheduled to take effect on July 1, 2024, is poised to create a PR powerhouse with an estimated worth exceeding $1 billion, potentially becoming the industry’s largest player.
The decision to merge BCW and Hill & Knowlton comes five years after BCW’s inception, which was the result of the acquisition of Burson-Marsteller by Cohn & Wolfe. Both firms have been integral parts of WPP’s portfolio, and this merger signifies WPP’s continued commitment to strengthening its presence in the PR industry.
Corey duBrowa, who joined BCW from Google in May last year, has been named as the global CEO of Burson. At the same time, AnnaMaria DeSalva, who has held the position of global chairman and CEO at Hill & Knowlton since 2019, will assume the role of global chairman at the newly formed agency. Together, they will oversee various aspects of the agency, including strategy, client service, employee management, and overall experience.
It’s worth noting that additional leadership appointments, including regional roles, are yet to be confirmed. According to a spokesperson, these appointments will be announced throughout 2024 as the integration progresses, drawing leaders from both BCW and Hill & Knowlton.
While the merger is expected to create a more robust organization, concerns about potential job losses have been raised. A spokesperson from WPP has stated that the goal is to minimize the impact on jobs as much as possible. However, job cuts have not been entirely ruled out, and the full extent of workforce changes will become clearer as the integration unfolds.
The new agency, named after the late PR pioneer Harold Burson, is poised to become one of the industry’s biggest players, with an estimated worth of over $1.1 billion. Although WPP does not disclose fee income for individual firms, BCW was estimated to be worth around $800 million in 2022, securing its position as the industry’s third-largest PR firm.
H&K, on the other hand, experienced a shift in rankings, dropping out of the top 10 for the first time in its history. However, under the leadership of AnnaMaria DeSalva, the firm had been on a path to revival. Together, the combined billings of the new Burson entity are set to surpass even Edelman, which has held the title of the industry’s largest PR firm for more than a decade.
Aligning with WPP’s Strategy
The integration of BCW and Hill & Knowlton aligns with WPP CEO Mark Read’s long-term strategy of simplification, which has seen multiple mergers within the WPP family of companies. Notable mergers include Wunderman Thompson and VMLY&R, Essence and MediaCom, Grey and AKQA, Sard Verbinnen and Finsbury Glover Hering (now FGS Global), and various design agencies under WPP’s umbrella. These moves are aimed at streamlining operations and enhancing efficiency within the group.
The Potential Benefits
The merger of BCW and H&K brings considerable scale to several sectors, particularly in healthcare and technology. The combined entity will employ over 6,000 professionals across 43 markets worldwide, further solidifying its global presence. Specialist brands within the WPP portfolio, such as Axicom and GCI Health, will continue to operate separately, focusing on technology and healthcare, respectively.
Innovation and Vision
Corey duBrowa emphasized the importance of innovation in the new Burson agency, stating that they would be leading with an “AI-first innovation pipeline.” He highlighted the agency’s commitment to upholding the principles of honesty, transparency, integrity, and excellence, which were championed by PR pioneer Harold Burson himself. The agency’s aim is to provide clients with valuable insights, expert strategic counsel, and cutting-edge technology solutions to thrive in today’s complex operating environment.
AnnaMaria DeSalva emphasized the transformative power of strategic communication and creativity in creating sustainable value. She expressed the agency’s commitment to advancing communications leadership through talent and technology investments, especially in a time when effective communication has never been more critical.
The merger of BCW and Hill & Knowlton to create Burson represents a significant development in the PR industry. It not only reshapes the landscape of PR agencies but also aligns with WPP’s strategy to simplify and streamline its operations. With a focus on innovation and a commitment to providing clients with superior communication solutions, Burson aims to become a dominant force in the global PR market. The industry will be closely watching the integration of these two giants as they join forces to redefine the world of public relations.
