Sharb Farjami Joins Reddit: A New Era for Partnerships
In a significant move for both Sharb Farjami and Reddit, it has been confirmed that Farjami will be stepping into a vital role at the social media platform. His main responsibility will revolve around building and nurturing partnerships with some of the largest agency holding companies, notably including giants like Publicis, Omnicom, and WPP. This strategic shift reflects Reddit’s ambition to strengthen its advertising capabilities and expand its presence within the competitive digital marketing landscape.
Transition from WPP Media
Recently, WPP announced internally that Farjami would be resigning from his position as CEO of WPP Media North America. This decision marks a pivotal change for Farjami, who has opted to pursue opportunities outside the traditional media agency structure. While both Farjami and Reddit have chosen not to comment publicly on this transition, it’s evident that this new role will place him at the forefront of Reddit’s efforts to enhance its advertising offerings.
Filling the Vacancy
Farjami’s appointment comes as Reddit seeks to fill the vacancy left by Alex Underwood, its former head of global agency development. Underwood stepped down in July to take on a position at Smartly, a digital advertising platform. This timing indicates Reddit’s proactive approach to ensuring continuity and growth in its advertising department during a period of change.
Rapid Growth of Reddit’s Ad Business
Reddit’s advertising business is currently thriving, with reports indicating that its ad revenue is increasing at a remarkable pace—three times faster than the overall social media market, as estimated by the research firm WARC. In its latest earnings report, Reddit disclosed an impressive 84% year-over-year growth in advertising revenue, amounting to $465 million in its second quarter. It’s noteworthy that most of this growth has stemmed from existing advertisers ramping up their spending, showcasing Reddit’s ability to foster strong client relationships.
Challenges at WPP
As Farjami transitions away from WPP, it’s crucial to contextualize the challenges that his former company faces. Under the leadership of newly appointed CEO Cindy Rose, WPP is undergoing a strategic turnaround to reclaim market share from competitors like Publicis and Omnicom, which are currently merging with IPG. The agency has recently experienced a decline in annual revenue and anticipates further drops this year, impacted by the loss of key accounts and macroeconomic uncertainties that are making clients hesitant to spend.
Reorganization at WPP
In light of Farjami’s departure, WPP has restructured its media buying operation. The recently renamed WPP Media will see Brian Lesser, the current CEO, step into Farjami’s previous role. This change illustrates WPP’s commitment to revitalizing its operations, even as it navigates turbulent market conditions.
A Legacy of Impact
Reflecting on Farjami’s tenure, Lesser described him as instrumental to the agency’s transformation. In a note to the WPP Media North America staff, Lesser highlighted Farjami’s significant contributions, which included attracting high-profile clients like Adobe, Audible, and Johnson & Johnson. Lesser remarked on Farjami’s dedication as a relentless advocate for both clients and the business, emphasizing his dual role in driving the agency’s new operational model in the region.
Farjami’s Background
Prior to his role at WPP Media, Farjami served as the leader of WPP’s Wavemaker US media agency, building a reputation for excellence and innovation. His extensive career has also seen him hold senior positions in companies affiliated with News Corp and Viacom, which later merged with CBS to form what is now known as Paramount Global. This deep well of experience positions Farjami as a seasoned leader ready to take on the challenges of his new position at Reddit.
This transition could mark a turning point for Reddit as it seeks to further affirm its standing in the ever-evolving digital advertising ecosystem, propelled by the expertise and vision of Sharb Farjami.