It has emerged that a major advertising network subcontracted Stagwell to carry out research and messaging work for a government client.
In the days following the disclosure of Stagwell’s involvement in public opinion research, the company faced significant backlash and canceled its planned internal festival, citing security concerns.
Documents obtained by media outlets indicate the project surveyed over 13,000 people to assess public knowledge and attitudes. Recommendations from the research included strategies using emotional storytelling and targeted messaging to influence perception, with plans to test different video messages to determine which were most effective.
Further reporting shows that a rival holding company had hired Stagwell as a subcontractor to execute this work as part of a broader project for a government communications agency. The research brief has since been completed. Requests for comment from the main agency overseeing the work went unanswered.
This is not the first subcontracted project of this kind. The holding company has a history of collaborations with government bodies, previously subcontracting Stagwell’s divisions to assist with media relations and communications campaigns. Other recent contracts reportedly included programs to amplify messaging across social platforms. A spokesperson for Stagwell’s consulting arm denied involvement in automated content campaigns, stating their work was limited to media relations.
Stagwell registered as a foreign agent to support the government client earlier this year but has indicated it has now begun the process of deregistering.
The revelations sparked internal criticism, with employees expressing outrage over the work. Stagwell responded by emphasizing that only a small team was involved and that each agency in its network operates independently, serving clients across political and issue-based spectrums.
Subcontracting and reputational risk
Industry insiders note that it is unusual for a holding company to subcontract sensitive government work to another network. While agencies frequently handle assignments for governments on complex issues, projects tied to ongoing conflicts are seen as particularly high-risk. Holding companies typically maintain internal frameworks to evaluate potential reputational consequences before taking on contentious briefs.
Despite assertions that only a small team conducted the work, leaked materials attribute it to the wider Stagwell Group, raising concerns that any backlash impacts the parent company directly. Observers suggest this reflects a broader trend of holding companies delivering integrated services under a unified brand rather than individual agency names.
Historically, agencies taking on politically sensitive work have faced significant scrutiny. Past controversies include covert campaigns, representing conflicting client interests, or working with government bodies on contentious operations, all of which have provoked reputational consequences for the agencies involved.
