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‘Math men’ not mad men rule advertising’s data age, says Lévy
May 5, 2019 | Financial Times | by Anna Nicolaou.

Maurice Levy: 'The future [of advertising] is based on data. It is not based on any mass media.' We know that mass media is [declining] every day,” “And if an advertising agency wants to have a future, data is absolutely indispensable.”

the advertising industry was undergoing a “metamorphosis” that required big bets.......As consumers shift attention away from pricey television commercials and towards the internet, where Facebook and Google dominate, the industry is more “math men” than mad men......In light of digital disruption Publicis, the world’s third-largest advertising agency by revenues, has made a big bet on data. In April the company made its largest acquisition with the purchase of Epsilon, a digital marketing company owned by Alliance Data Systems......Like its rivals WPP and Omnicom, Publicis is under pressure as Facebook and Google have disintermediated the traditional agency model. The two tech groups account for two-thirds of digital advertising sales in the US.....The industry has been consolidating as traditional agencies look to position themselves as data analytics gurus who can help brands target shoppers online. Last year Interpublic bought data business Acxiom for $2bn, while just last month buzzy agency Droga5 sold itself to Accenture......Despite lingering fears that an economic slowdown is looming, “the situation is much better now,”.... making the Epsilon decision easier. “The fastest-growing segment in our industry is data, technology, internet. Period. All the rest is suffering.”
advertising  advertising_agencies  analytics  big_bets  data  decline  disruption  disintermediation  Epsilon  Facebook  Google  Interpublic  Mad_Men  marketing  mass_media  mathematics  Maurice_Lévy  Omnicom  Publicis  WPP 
may 2019 by jerryking
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
Hard sell for the ad men
| Financial Times |

Consumer goods groups are cutting costs amid slowing growth – the advertising industry is first to feel the pinch
CPG  cost-cutting  shareholder_activism  advertising  Big_Food  advertising_agencies  P&G  bots  marketing  budgets  Unilever  ABInBev  Mondelez  WPP  Interpublic  brands  Nestlé  slow_growth 
august 2017 by jerryking
Vice tunes into youth audience with frontline coverage in Charlottesville
19 August/20 August 2017 | Financial Times | Matthew Garrahan.

The Charlottesville film took Vice viewers much closer to the demonstrating racists than most rival media reports. While US news channels reacted to the demonstration and its violent aftermath when an anti-fascist protester was murdered by an alleged domestic terrorist, Vice was ahead of the game, Ms Bell said

“The mainstream media’s reaction to the march on the day felt like they were being taken by surprise but Vice was very well prepared,” she said. “They knew who the protagonists were and have been following this issue and thinking about it for a while. They knew about these protests for months and knew it would be a big story.”

Vice said Elle Reeve, its correspondent who reported from Charlottesville, had spent time earning the trust of key figures in the hate groups that participated in the march.

The mainstream media’s reaction to the march on the day felt like they were being taken by surprise but Vice was very well prepared

“It really is a triumph of old fashioned beat reporting,” said Josh Tyrangiel, executive vice-president of news at Vice. “She is able to distinguish between the different groups and the fact that she is capable of understanding them gives them some trust that she takes them seriously.”

Mr Tyrangiel said Vice’s decision to get close to the Charlottesville protesters reflected the interests of its audience. “There is so much going on in the world and successful news organisations know they can’t possibly own every story. We’re going to own the things that are very important to our audience. 

“If you’re CNN or the New York Times, they’ve done very well on their top [story] priorities. For us, because we lean younger, the rise of those groups seem like it’s one we should own.”

Investors in Vice are well aware of the company’s rising profile. The TPG deal was the latest in a string of investments in Vice, which has more than doubled in value since 2014. 

WPP, the world’s largest advertising group, was an early investor, buying an 8 per cent stake that is now worth more than $450m.

Rupert Murdoch’s 21st Century Fox bought 5 per cent in 2013 for $70m — a stake that is now worth close to $300m — while James Murdoch, the company’s chief executive, sits on the Vice board. Walt Disney recently paid $400m to double its stake to about 10 per cent while A&E Networks, a television group it owns with Hearst, invested in and launched Viceland, Vice’s cable channel.
digital_media  Charlottesville  white_supremacy  Vice  investors  Josh_Tyrangiel  TPG  WPP  21st_Century_Fox  anti-Semitism  Walt_Disney  valuations 
august 2017 by jerryking
Businesses must quickly count the cost of cyber crime
8 July /9 July 2017 | Financial Times | Brooke Masters.

Transparency without the full facts can be dangerous....Cyber attacks are frightening and hard for investors to evaluate. Quantify, to the extent possible, the impact as quickly as you can.
computer_viruses  malware  Mondelez  cyber_security  WPP  transparency  cyberattacks  brands 
august 2017 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
Advertising: Facebook and Google build a duopoly
JUNE 23, 2016 | Financial Times | by Matthew Garrahan.

Google and Facebook compete in some areas such as digital video advertising but are present “across every part of the food chain”, according to one ad executive. This seismic shift to a digital and mobile ad landscape effectively controlled by two companies has wide repercussions for agencies, media buyers, publishers and the brands that want to sell more products.

Advertisers like the targeting they get with Facebook and the trove of data it has on its 1.6bn users, just as they like the efficiency of Google search. But they are worried about a concentration of market power in two companies that not only own the playing field but are able to set the rules of the game as well.

Facebook and Google “are hegemons” that could soon be taking campaigns away from television, says Brian Wieser, analyst with Pivotal Research. Paul Frampton, chief executive of Havas Media Group UK, says they are “black boxes” that have too much power. “They don’t give agencies or the brands access to their algorithms and the data being mined are for Google and Facebook — and not for the brand.”
advertising  advertising_agencies  Facebook  Google  Amazon  WPP  duopolies  media_buyers  dislocations  Mary_Meeker  seismic_shifts 
february 2017 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
The Unlobbyists - NYTimes.com
By THOMAS B. EDSALL
Published: December 31, 2013

‘relationship lobbying’ is dead, or at least not where the growth will be.” The traditional lobbyist, he argues, is no longer the éminence grise of days past but instead has been reduced to serving as a conduit for campaign contributions from corporate and trade association PACs to candidates.

The action has shifted to what is known in the business as strategic advice: how to convince and mobilize voters and opinion elites in support of a client’s agenda.... So what does this new strategic adviser actually do? He or she can plan out a legislative campaign or a drive to affect the implementation of regulation, determine which officials and agencies must be dealt with, and propose potential coalition partners.

Interestingly, all this can be done without making direct contact with elected officials, congressional aides or top-ranked department and agency appointees and employees. This arms-length approach permits strategic advisers to avoid lobbying registration and reporting requirements.
campaign_contributions  lobbying  public_relations  Communicating_&_Connecting  Washington_D.C.  WPP  relationships  advice  campaigns  Inside_the_Beltway 
january 2014 by jerryking
P.R. Agency Begins a Push to Modernize - NYTimes.com
October 13, 2013 | NYT | By STUART ELLIOTT.

The initiative includes, in addition to the new slogan, beginning a series of meetings of thought leaders, under the rubric of the Burson-Marsteller Conversations; revamping the employee training program; forming a worldwide strategic leadership team; hiring additional senior managers; introducing a “reverse mentoring” program in which younger employees mentor their elders in digital and social media; retooling the Burson-Marsteller Web site; and redesigning brand identity materials like business cards. ...Burson-Marsteller joins a long list of public relations agencies reconsidering how they operate amid new forces like social media and real-time marketing. Others include DeVries Public Relations, which was renamed DeVries Global; FleishmanHillard, part of the Omnicom Group; and the Olson P.R. division of Olson, re-branded as Olson Engage.
public_relations  reinvention  Burson-Marsteller  WPP  Young_&_Rubicam  retooling  modernization  brand_identity  training_programs 
october 2013 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
In Ad Campaign, SAP Looks Beyond Business Customers - NYTimes.com
April 16, 2012, 12:14 am
In Ad Campaign, SAP Looks Beyond Business Customers
By TANZINA VEGA
SAP  WPP  Ogilvy_&_Mather  advertising_agencies  advertising 
april 2012 by jerryking
Chinese Firms' Buying Binge Bet on Value of Western Brands - WSJ.com
JUNE 23, 2005 | WSJ | By GEOFFREY A. FOWLER.

Foreign companies have used several strategies to expand into the U.S. Some purchased U.S. brands …Others have built their U.S. customer base organically….But this path can take a long time and hit bumps along the way…But Japanese and Korean manufacturers that moved to the U.S. enjoyed a boost their Chinese counterparts lack: a government-protected home market in the 1980s and '90s that allowed them to finance their international push with rich profits from domestic sales. China has largely opened up its consumer market to competition. …Wooing brand-conscious Americans shoppers is a slow process that almost no Chinese manufacturers, used to selling on price, have mastered. Almost a decade ago, Konka Group Ltd., then China's biggest TV maker, made a big push into the U.S. and seemed to make progress for a while with a low-cost line of sets. But it never gained the marketing savvy or name recognition it needed and has since retreated to its home market, where it has slipped to No. 3…Buying an established company, on the other hand, offers Chinese companies immediate access to technology, experienced marketing executives and coveted distribution channels at a time when America's retail industry is consolidating…. The biggest hurdle, though, has been finding enough people who can bridge Chinese and Western business cultures. "Maybe Haier has the people," says Vincent Yan, a managing director of TCL. "We needed cross-cultural people with the right business experience. Those are very hard to accumulate."
brands  branding  China  M&A  mergers_&_acquisitions  Chinese  Haier  WPP  cross-cultural  white_goods  manufacturers  marketing  brand-conscious 
october 2011 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
WPP's Ogilvy & Mather to Launch China-Focused Division in U.S. - WSJ.com
APRIL 11, 2011 | WSJ | By LAURIE BURKITT. The new venture
places the agency amid a growing roster of law firms, investment banks
and consultancies that are building their staffs and creating new
services to cater to the government's initiative to build up Chinese
businesses abroad.
WPP  China  New_York_City  public_relations  advertising_agencies  FDI  China_rising  Ogilvy_&_Mather  product_launches 
april 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
Publicis Aims for Digital-Revenue Growth - WSJ.com
JUNE 1, 2010 | WSJ | By RUTH BENDER And MAX COLCHESTER.
Buoyed by a Digital Wave, After Buying Up Online-Ad Specialists,
Publicis CEO Seeks to Make Them Grow.
digital_media  advertising  advertising_agencies  WPP  Publicis 
june 2010 by jerryking
For Tech Companies, Downturn Serves as Cause for Common Ground - NYTimes.com
June 29, 2009 | New York Times | By ERIC PFANNER. Internet
companies and ad agencies have no choice but to work together to develop
ways to make money from digital media.
online_advertising  economic_downturn  Google  Microsoft  advertising_agencies  digital_media  WPP 
june 2009 by jerryking
WPP, Google to Fund Web-Ad Research - WSJ.com
MARCH 18, 2009| WSJ| by EMILY STEEL

The two companies are teaming with institutions including HBS, Sloan and
Stanford University to fund & research: (1) how ads in traditional
and digital media work together to influence consumer choices; (2)
psychology and neuroscience to analyze how the brain determines whether
Web ads are relevant; and (3), how Chinese Internet users respond to
different online-ad formats, such as display and search ads.
Emily_Steel  Google  digital_media  market_research  cross-cultural  China  online_advertising  neurosciences  WPP  consumer_research  digital_influencers 
march 2009 by jerryking

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