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jerryking : martin_sorrell   18

Technology has upended the world’s advertising giants - Mad men adrift
March 31st, 2018 | The Economist |

The world’s advertising giants are struggling to adapt to a landscape suddenly dominated by the duopoly of Google and Facebook. Some of their biggest clients, such as Procter & Gamble (P&G) and Unilever, are also being disrupted, in their case by smaller online brands and by Amazon. They are cutting spending on advertising services, and also building more capabilities in-house. Consultancies with digital expertise such as Deloitte and Accenture are competing with agencies, arguing that they know how to connect with consumers better, and more cheaply, using data, machine learning and app design.......This month Marc Pritchard, chief brand officer of P&G, criticised their (i.e. the ad giants) model as a “Mad Men” operation that is “archaic” and overly complex in an era when campaigns and ads need to be designed and refined quickly across lots of platforms.

Technological forces are buffeting this model.

(1) The first big challenge is disintermediation. Despite the growing backlash against the tech giants, Google and Facebook make it easy for firms big and small to advertise on their platforms and across the internet via their powerful ad networks.
(2) The second headache is the rise of ad-free content for consumers, especially on Netflix, and the corresponding disruption of ad-supported television, which has declining viewership globally.
(3) Third, Amazon’s e-commerce might, and the growing clout of internet-era direct-to-consumer upstarts, have weakened the distribution muscle and pricing power of the advertising giants’ biggest clients.....cost discipline among clients is driven partly by the influence of thrifty private-equity investors like 3G, the Brazilian owner of AB InBev, the world’s largest brewer......Sir Martin argues that the budgetary pressures that have forced his clients to cut back on advertising are a cyclical problem, not like the structural challenges posed by technological disruption.

In private, however, a senior executive at a rival ad-holding firm rejects much of this optimism. Technological disruption and disintermediation, he says, will only deepen. The efficiency of targeted digital ads means companies can spend less for the same outcome in branding. ....The advertising firms are responding by hiring away talent, acquiring businesses (in 2015 Publicis bought Sapient, a digital consultancy, for $3.7bn) and gradually changing how they make money. Their plans mostly boil down to two things: investing in digital services and consolidating their collections of businesses so that they can provide a range of services to one client more cheaply under one account.
advertising  economics  marketing  advertising_agencies  Martin_Sorrell  digital_strategies  WPP  Google  Facebook  Amazon  competitive_landscape  P&G  Unilever  disruption  Deloitte  Accenture  Publicis  Omnicom  via:sparkey  ad-tech  programmatic  direct-to-consumer 
april 2018 by jerryking
Stanford dropout with a magical touch
Jul 14, 2017 | Financial Times | by: Hannah Kuchler.

Evan Spiegel refuses to be scared of Facebook. Confidence helped the 27-year-old Snap chief executive take a photo messaging app from a Stanford University coursework project to an almost $20bn initial public offering. The threat of Facebook has been following all the way.

In 2013, when the company behind Snapchat was just two years old, its co-founder (his partner was a fellow student, Bobby Murphy) was quizzed on stage about Poke, Facebook’s first attempt at imitating the app’s photo messaging. “Certainly it is scary when a giant enters your space and you are a small company,” Mr Spiegel said at the TechCrunch Disrupt conference. He laughed it off: Poke failed, and that became the “greatest Christmas present we ever had”.

But the world’s largest social network does not give up and has relentlessly imitated Snapchat since Mr Spiegel turned down its $3bn acquisition offer in 2013. Earlier this year, just as Snap headed for the public markets, Facebook finally succeeded in popularising a version of “Stories” in four of its apps — the Snapchat feature that expires after 24 hours.......an unlikely analogy..... “Just because Yahoo, for example, has a search box, it doesn’t mean they are Google.”......Mr Spiegel, who dropped out of Stanford, was the first chief executive from a new wave of highly valued tech start-ups to brave the public markets. It paid off personally: he became a multi-billionaire when he took Snap public....Spiegel is soaking up advice “like a sponge” from senior management and the board, which includes Michael Lynton, former chief executive of Sony Pictures and AG Lafley, former chief executive of Procter & Gamble.....Praised as a product genius who instinctively understands the desires of his young audience, Mr Spiegel now has to learn to be a public company leader, managing the expectations of investors who want to compare Snap to Facebook and Mr Spiegel to Mark Zuckerberg......By designing the disappearing photos that made Snapchat famous, Mr Spiegel completely rethought the camera. Photos became transient conversations, not kept for posterity; social media became a way to be creative — and silly — with your close friends, not flick through a feed of near strangers.....Sir Martin Sorrell, chief executive of WPP, told the Financial Times it plans to double its spending to $200m on Snap this year. But, he added, WPP will spend over 10 times more on Facebook.

...
dropouts  Stanford  IPOs  Snap  Snapchat  CEOs  Evan_Spiegel  WPP  Martin_Sorrell  product_development  product-orientated  public_companies  investors'_expectations  10x 
july 2017 by jerryking
Leaner and meaner; Advertising agencies
Technology has made life harder for admen, but they will not disappear

GAUGING THE STATE of health of the advertising industry is easy: just stroll along the waterfront in Cannes when the admen hol...
advertising_agencies  WPP  Martin_Sorrell  Publicis  ad-tech  Omnicom 
february 2017 by jerryking
Why not giving a damn won’t stand in your way of success - FT.com
June 14, 2015 1:02 pm
Why not giving a damn won’t stand in your way of success
Lucy Kellaway
James_Althucher  Lucy_Kellaway  Steve_Jobs  Martin_Sorrell 
june 2015 by jerryking
The networker: Martin Sorrell of WPP - FT.com
March 13, 2015| FT | Andrew Hill.

After 30 years, WPP now embraces some of the best-known names in marketing, advertising and public relations, including Ogilvy & Mather, J Walter Thompson and Burson-Marsteller.
In the process, Sorrell has become one of the best-connected executives in the world....Sorrell performs a similar role at WPP, using a combination of visionary pronouncements and obsessive micromanagement of clients, finances and employees. ....later this year a new chairman, Roberto Quarta, will take over. Quarta, a tough Italian-American with a background in private equity, is expected to be less submissive to WPP’s chief executive than previous chairmen. The question of how long Sorrell ­continues in his role, who could succeed him, and what will happen to the WPP empire if he goes, will be the most important issue on Quarta’s desk....“[If] I have been behaving as an owner, rather than as a ‘highly paid manager’ . . . mea culpa. I thought that was the object of the exercise,” he wrote.
Martin_Sorrell  WPP  advertising  advertising_agencies  succession  deal-making  WEF_Davos  legacies  JWT  Ogilvy_&_Mather  owners  Burson-Marsteller 
march 2015 by jerryking
Behind Martin Sorrell’s Data Binge - CMO Today - WSJ
Mar 12, 2015 | WSJ | By NATHALIE TADENA.

Sorrell, this is about putting his sprawling holding company in control of all the various data marketers are demanding nowadays to make sense of their ad campaigns. They want to know a lot about who is viewing. They want to know which TV shows or Web sites are ideal to reach their desired audience. And ultimately, they want to know how much an ad contributes to an actual sale of a product or service.

By becoming a global data powerhouse, WPP hopes to help clients draw connections across different data sources, better target audiences and ultimately improve the effectiveness of their advertising dollars.
data_sources  Martin_Sorrell  WPP  mergers_&_acquisitions  ROI  CMOs  M&A  data  metrics  measurements  advertising_agencies  advertising  marketing  data_driven  targeting  target_marketing 
march 2015 by jerryking
In Davos, a U.S. deficit hawk gets dovish - The Globe and Mail
CHRYSTIA FREELAND

DAVOS, SWITZERLAND — Special to The Globe and Mail

Published Thursday, Jan. 24 2013
Chrystia_Freeland  Larry_Summers  Davos  Martin_Sorrell  WPP 
january 2013 by jerryking
Martin Sorrell of WPP Group thinks companies need to get spending - WSJ.com
June 29, 2012|Wall Street Journal | Interview of Martin Sorrell by Alan Murray.

MR. MURRAY: Are you a concurrent indicator? A lagging indicator?

MR. SORRELL: We lead the downturn, and we lag the upturn. So, we get the worst of both worlds. If people are worried, they cut marketing spending. If things are going to turn up, they wait until they're confirmed.

Open Your Wallets
AUDIENCE MEMBER: Why do you think companies are sitting on too much cash?

MR. SORRELL: I started WPP with one other person 27 years ago. I decided to do something entrepreneurial. I borrowed £250,000 and bought into a shell company called Wire & Plastic Products, which is what WPP stands for, and wanted to build a very significant advertising and marketing-services company.

The system doesn't encourage people to take those sort of risks. Big corporations are natural bureaucracies, in the nicest sense of the word. Inherently, the system encourages conservatism.

To get out of where we are, you have to be expansive. Our strategy is simple: new markets, new media, consumer insight and then the ugly word, horizontality, getting people to work together. The first two involve taking risk. Myanmar opens up, 66 million people in that country. Major opportunity. You have to grasp it. We've gone in there in the first two weeks, repurchased an agency we had to sell because of sanctions, and we've gone in with our research operations.

When markets open up like that, you have to embrace the opportunities. I think the system doesn't encourage you to take those risks.
cash  economic_downturn  interviews  lagging_indicators  leading_indicators  Martin_Sorrell  origin_story  risk-taking  WPP 
june 2012 by jerryking
Insights with Sir Martin Sorrell
Q3 · 2011 | Think Quarterly by Google | by Simon Rogers. For
Sorrell, that lack of control is symptomatic of the new world. “I’m in a
business where there’s complete anarchy. You can’t control it – you can
only react to it. The control traditionally held over the msg. is gone.
Look at Wikileaks: we approach everything we write on the basis it’s
going to be on the front pg. of the newspaper.”...His business
increasingly revolves around mobile comms. & what they can offer the
client. WPP encourages its established brands to invest in mobile
talent, and exhorting its online agencies to embrace mobile in a more
aggressive way...“Mobile is part of the online revolution,” he says. The
side effect of all this is that “our willingness to sit down and dig
deep and reflect is diminishing because so much info is coming at such a
pace – literally 24/7. He continues. “People used to say that info. is
power but that’s no longer the case. It’s analysis of the data, its use –
that's the power.
innovation  mobile  Martin_Sorrell  brands  interviews  WPP  advertising_agencies  data  analysis 
august 2011 by jerryking
Business: King of the Mad Men; Face value: Martin Sorrell
Nov 6, 2010 | The Economist. Vol. 397, Iss. 8707; pg. 81 |
Anonymous. In the long run, WPP seems to be well placed in many of the
world's fastest-growing economies, including Africa, where it has been
hired to rebrand Zain, a mobile-phone company. Only around one-third of
WPP's revenue now comes from the sort of work most people associate with
advertising; the rest is generated by a broader range of marketing
activities, such as consumer research, digital marketing, public
relations, and media planning and buying. It is a world away from the
1960s Madison Avenue advertising agency featured in "Mad Men", a hit
television drama. Sir Martin watches that too, and admits it shows that
some things remain the same in adland: "The egos, turf wars and
political incorrectness."
WPP  Martin_Sorrell  ProQuest  advertising_agencies  advertising  Mad_Men 
november 2010 by jerryking
China Web Ads Are New Frontier - WSJ.com
JULY 22, 2010 | Wall Street Journal | Emily Steel. Agencies'
New Frontier: China Web Ads. Publicis, Interpublic to Launch
Digital-Ad Buying Units in the Country, Hoping to Capitalize on a
Fast-Growing Market
Publicis  advertising_agencies  online_advertising  WPP  Martin_Sorrell  Baidu  Tencent  China 
august 2010 by jerryking

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