http://adage.com/agencynews/article?article_id=148158
Mr. Bond will work closely with Avi Savar, Big Fuel's current CEO and founder, who will now focus on the agency's content development and thought leadership. Big Fuel's clients include General Motors, McDonald's Corp., Mattel's Fisher-Price, Gore-Tex, Budweiser and Colgate-Palmolive. The shop has plans for rapid expansion and aims to hire 200 employees in the early part of the year.
The move to Big Fuel is surprising for Mr. Bond, considering that only seven months ago he set out to build a new marketing-services entity, dubbed Tomorrow, to rival Kirshenbaum parent MDC Partners and other holding companies. Mr. Bond said Tomorrow, which invested in companies such as Klout and crowdsourcing shop Victors & Spoils, will no longer exist in its current form.
In other words, Big Fuel is looking to partner with companies whose capabilities are related only to social media. Mr. Bond said there are a few acquisition targets the agency is considering, such as companies that offer proprietary technology, for instance.
Showing posts with label People. Show all posts
Showing posts with label People. Show all posts
Thursday, January 13, 2011
Tuesday, April 27, 2010
Maurice Lévy to leave Publicis Groupe
Maurice Lévy, the chairman and chief executive of the French advertising giant Publicis Groupe, is to step down after 40 years.
Lévy will not seek to renew his contract with Publicis, owner of ad networks including Saatchi & Saatchi, when it expires at the end of next year, MediaGuardian.co.uk can reveal.
"My contract is finishing at the end of 2011 and you can say that I will not be seeking a new term," said Lévy, speaking to MediaGuardian.co.uk. "There are strong candidates [inside Publicis Groupe] but it will be up to the board to make the decision and choose. As far as I'm concerned what I can do is make a recommendation which I will do."
Lévy, 68, joined Publicis Groupe in 1971 and will have worked at the French advertising giant for 40 years when he steps down at the end of his current contract. He has held the role of chairman and chief executive for more than 20 years, being appointed to the top job in 1987.
http://www.guardian.co.uk/media/2010/apr/22/maurice-levy-leave-publicis-groupe
He added that he had yet to determine whether he would continue to work for Publicis Groupe in some form of advisory or non-executive role.
Lévy will not seek to renew his contract with Publicis, owner of ad networks including Saatchi & Saatchi, when it expires at the end of next year, MediaGuardian.co.uk can reveal.
"My contract is finishing at the end of 2011 and you can say that I will not be seeking a new term," said Lévy, speaking to MediaGuardian.co.uk. "There are strong candidates [inside Publicis Groupe] but it will be up to the board to make the decision and choose. As far as I'm concerned what I can do is make a recommendation which I will do."
Lévy, 68, joined Publicis Groupe in 1971 and will have worked at the French advertising giant for 40 years when he steps down at the end of his current contract. He has held the role of chairman and chief executive for more than 20 years, being appointed to the top job in 1987.
http://www.guardian.co.uk/media/2010/apr/22/maurice-levy-leave-publicis-groupe
He added that he had yet to determine whether he would continue to work for Publicis Groupe in some form of advisory or non-executive role.
Friday, December 11, 2009
Martin Sorrell: vicious price competition
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=118803
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
Monday, December 7, 2009
Phil Geier's Tips for Survival
http://adage.com/agencynews/article?article_id=140895
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Friday, November 6, 2009
WPP CEO Offers Outlook on Advertising's Future
http://www.clickz.com/3635572
WPP Chief Executive Martin Sorrell identified three areas where the company is placing its bets for growth in coming years: a geographic shift in power, the rise in new media, and an increased focus on marketing information and insights.
"There's a shift in power, which I still don't think we fully understand here standing in New York, from the West to the East -- and modify that to the South," said Sorrell, keynote speaker at ad:tech New York, referring to China and India in the East and Latin America in the South. "Every single client we deal with is focusing on these parts of the world for growth."
Sorrell said he also expects online marketing budgets to catch up with consumer use of new media. Currently, clients spend about 12 percent of their marketing budgets online, he said. Yet consumers spend 20 to 28 percent of their time online.
Why isn't more money invested in online marketing? It's generational, he said. "People who run media agencies tend to be an older vintage. They tend to be resistant to change," he said. Executives approaching retirement age don't want to spend the last three or four years of their careers dealing with massive change, he said.
A third area of growth, he predicted, involves marketing information services. With that in mind, WPP last year acquired TNS.
WPP Chief Executive Martin Sorrell identified three areas where the company is placing its bets for growth in coming years: a geographic shift in power, the rise in new media, and an increased focus on marketing information and insights.
"There's a shift in power, which I still don't think we fully understand here standing in New York, from the West to the East -- and modify that to the South," said Sorrell, keynote speaker at ad:tech New York, referring to China and India in the East and Latin America in the South. "Every single client we deal with is focusing on these parts of the world for growth."
Sorrell said he also expects online marketing budgets to catch up with consumer use of new media. Currently, clients spend about 12 percent of their marketing budgets online, he said. Yet consumers spend 20 to 28 percent of their time online.
Why isn't more money invested in online marketing? It's generational, he said. "People who run media agencies tend to be an older vintage. They tend to be resistant to change," he said. Executives approaching retirement age don't want to spend the last three or four years of their careers dealing with massive change, he said.
A third area of growth, he predicted, involves marketing information services. With that in mind, WPP last year acquired TNS.
Tuesday, May 5, 2009
Maurice Levy: 'We Are Doing Much Better Than Our Competitors'
http://adage.com/agencynews/article?article_id=136347
What sectors will turn around quickest?
Mr. Levy: Digital will continue to grow, and I don't think it will turn negative. If you look, organically we have grown 9.8%, which is a very good number, and even if it is growing slightly it will continue to grow.
I believe the first to go on the up will be creative agencies, simply because there is a need for advertisers to work differently on building their brands and relationships with consumers. Times have changed, and [the marketplace] requires a different kind of approach, so I'm very confident things will start with the creative agencies.
I believe we will touch the lowest point of our industry probably in June or latest in July and start to move to the up trend in August or September. We will then continue to grow, but it will not be sharp growth; it will be more progressive. Real growth will occur somewhere in the 2010 summer time frame.
What sectors will turn around quickest?
Mr. Levy: Digital will continue to grow, and I don't think it will turn negative. If you look, organically we have grown 9.8%, which is a very good number, and even if it is growing slightly it will continue to grow.
I believe the first to go on the up will be creative agencies, simply because there is a need for advertisers to work differently on building their brands and relationships with consumers. Times have changed, and [the marketplace] requires a different kind of approach, so I'm very confident things will start with the creative agencies.
I believe we will touch the lowest point of our industry probably in June or latest in July and start to move to the up trend in August or September. We will then continue to grow, but it will not be sharp growth; it will be more progressive. Real growth will occur somewhere in the 2010 summer time frame.
Friday, February 13, 2009
What Maurice Levy Loves About the Recession
Ad Age: Any acquisitions planned yet for 2009?Mr. Levy: The good thing is that we have 2.8 billion euros ($3.6 billion) of liquidity, and at that level, we have the possibility of making acquisitions. But we are not in a hurry or in a frenzy to make acquisitions. We consider that there are many small acquisitions we can make and we are working on, but we currently have no plans for any large acquisitions.
Ad Age: What sectors do you think will be strong in 2009?Mr. Levy: In 2009, we will see the creative agencies coming back very strongly, because advertisers will be in need of great ideas. We may see the Publicis Groupe grow in the field of health care, and for the others, like CRM, PR, this will very much depend on each market, some of which will be on the up and some down. And there is one segment of PR that I call strategy PR, which includes management issues like crisis, that will definitely be on the upturn.
Monday, December 15, 2008
Publicis CEO takes long view in economic downturn
http://www.iht.com/articles/2008/12/14/business/ad15.php
As carmakers and other advertisers look for more efficient ways to get their messages across, Lévy said, the economic crisis will hasten the shift of advertising to the Internet and away from traditional media. By 2010, he said, 15 percent of global ad spending will be online.
Lévy has tried to prepare Publicis for this shift by beefing up its digital capabilities. Two years ago, the company acquired Digitas, a specialist in online marketing, for $1.3 billion. Publicis has also invested substantially in emerging markets, where ad spending has been growing more rapidly than in Western Europe, Japan or North America.
"This has recently become a higher risk strategy," the Morgan Stanley analysts wrote in a recent report on Publicis. Indeed, the notion that Internet ad spending will be less affected by the downturn, which has become something of a mantra in the industry, remains unproven. During the last downturn, Internet spending suffered the most. Emerging markets can also be volatile.
But Lévy said Publicis would stick with its approach. This month, the company acquired W&K Communications, an agency based in Beijing. In November, it announced the purchase of Tribal, a Brazilian agency specializing in digital advertising.
He said big, geographically diversified advertising companies like Publicis, alongside small, boutique agencies with a creative reputation, would fare better than midsize companies in the downturn.
"There will be casualties," he said, without naming names. "There will be consolidation. There will be companies that will not be in business when this crisis is over - advertisers, advertising agencies and media."
As carmakers and other advertisers look for more efficient ways to get their messages across, Lévy said, the economic crisis will hasten the shift of advertising to the Internet and away from traditional media. By 2010, he said, 15 percent of global ad spending will be online.
Lévy has tried to prepare Publicis for this shift by beefing up its digital capabilities. Two years ago, the company acquired Digitas, a specialist in online marketing, for $1.3 billion. Publicis has also invested substantially in emerging markets, where ad spending has been growing more rapidly than in Western Europe, Japan or North America.
"This has recently become a higher risk strategy," the Morgan Stanley analysts wrote in a recent report on Publicis. Indeed, the notion that Internet ad spending will be less affected by the downturn, which has become something of a mantra in the industry, remains unproven. During the last downturn, Internet spending suffered the most. Emerging markets can also be volatile.
But Lévy said Publicis would stick with its approach. This month, the company acquired W&K Communications, an agency based in Beijing. In November, it announced the purchase of Tribal, a Brazilian agency specializing in digital advertising.
He said big, geographically diversified advertising companies like Publicis, alongside small, boutique agencies with a creative reputation, would fare better than midsize companies in the downturn.
"There will be casualties," he said, without naming names. "There will be consolidation. There will be companies that will not be in business when this crisis is over - advertisers, advertising agencies and media."
Tuesday, July 22, 2008
What to Expect from P&G's New Marketing Chief
http://adage.com/article?article_id=129776
'Tough Guy' Pritchard Is Stickler for ROI -- and He's Not at All Like Stengel
Mr. Pritchard, even in a company known for buttoned-down, analytical and disciplined managers, is seen by people who have worked with him as unusually buttoned-down, analytical and disciplined. He's the first top marketer at P&G since the late Robert Goldstein to be described by anyone who's worked for him as a "tough guy."
Already, P&G has been under pressure from increased marketing spending by restructuring or recently restructured rivals such as Unilever, Kimberly-Clark and Colgate-Palmolive Co.
'Tough Guy' Pritchard Is Stickler for ROI -- and He's Not at All Like Stengel
Mr. Pritchard, even in a company known for buttoned-down, analytical and disciplined managers, is seen by people who have worked with him as unusually buttoned-down, analytical and disciplined. He's the first top marketer at P&G since the late Robert Goldstein to be described by anyone who's worked for him as a "tough guy."
Already, P&G has been under pressure from increased marketing spending by restructuring or recently restructured rivals such as Unilever, Kimberly-Clark and Colgate-Palmolive Co.
Subscribe to:
Posts (Atom)
