WPP has won the contract of the 2nd largest computer company Dell (DELL), which generates $4.5 billion in billings over a three-year period. Overall revenue from the account for WPP should come in at around $100 million. Globally Dell spends about $700 million yearly in measured media.
Dell said in a statement that WPP would be building a new agency which integrates marketing and communications they are dubbing "Project DaVinci," because it will bring together the scientist and artist for the purpose of measuring any creative endeavor coming out of the agency.
WPP (WPPGY) won the contract based on their creating of a dedicated division including individuals from a variety of fields. Their main competitor IPG offered a collection of agencies in contrast.
This move by Dell is in response to losing their No. 1 position in the industry and also losing ground to Hewlett-Packard (HPQ) this year, while remaining in the second-place position for computer companies in the world.
HP has about a 20 percent share of the market while Dell has around 15 percent.
They are looking for ways to gain back momentum for growth, and the decision to award the contract to WPP with their dedicated unit says they feel that will serve them to grow quicker.
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