In the 1987 film The Untouchables, Sean Connery’s character sarcastically accuses one of Al Capone’s men of taking a knife to a gunfight. That is what Procurement does when using hourly rates to evaluate an agency’s staffing plan and ultimately their fee request.
The client and agency very carefully construct a scope of work. The agency then develops a staffing plan, sometimes down to the individual deliverables level and assigns each person on the plan a number of hours and an hourly rate. The roll up of all the hourly rates and number of hours can become the initial fee request from the agency. (more…)
During the AdForum Worldwide Summit in NYC, the CEOs of 6 holding companies discussed with the world’s leading pitch consultants the future of the industry and commented on the Publicis- Omnicom Group planned merger. Here are the meeting notes I took:
Will the merger work?
In the days following the planned merger announcement in Paris, competitors as well as commentators were quick to raise the potential problems of this merger. In our conversation with the CEOs some of these arguments resurfaced, though in a more moderate tone: Client conflicts, of course, but even more, client fear to be diluted in a larger, more bureaucratic organization, Talent and management drain, Focus of the most senior management level on non-client matters, Clash of culture and Leadership complexity.
Agency networks are forever telling us that, these days, they’re digital to the core. So just for fun, we did some research to find out which holding companies – and their bosses – are the most active on Twitter. Admittedly the research was not highly scientific – so feel free to correct us if we’re wrong. But here are the results at the time of writing. (more…)
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Il y a 10 ans, une certaine chanteuse entonnait le refrain bien connu de « La Positive Attitude ». A l’époque, les français aussi. Il y avait 51% d’optimistes, et aujourd’hui on n’en compte plus que 29% quant à l’évolution du niveau de vie. Mais que révèle cette inversion de la tendance ? Le couple français-publicité tient-il toujours ? Et que faire pour remédier à ce pessimisme ambiant ? (more…)
6 Holding Cos:
David Jones, CEO, Havas Group, Maurice Levy, CEO, Publicis Groupe, Miles Nadal, CEO, MDC Partners, Michael Roth, CEO, Interpublic, Sir Martin Sorrell, CEO, WPP, John Wren, CEO, Omnicom Group
5 Global Networks:
Andrew Robertson, CEO, BBDO Worldwide, Jim Heekin, CEO, Grey Group Worldwide, Andrew Bennett, CEO, Havas Worldwide, Diamond Harris, CEO, McCann Worldgroup, David Sable, CEO, Y&R Brands
Every year is the same: it is never the same.
Our lives are changing at the speed of light. The web is ‘pinterested’, Facebook crossed the billion users line without impressing Wall Street, Twitter has become a major force in elections, everyday new apps are part of our daily life.
Advertising is changing at the same speed. The digital revolution has created the bed for new agencies. Small start-ups born in the early 2000 have mushroomed around the world winning over giant networks before being purchased by holding companies. With the motto: Small is beautiful! And, suddenly, like a lightning in the sky, without warning, two advertising giants decide to merge, as if Big was no big enough. The reason? Big Data.
Big Data is the new grail. Does this merger change the competitive situation? Split points of view from the CEOs of 4 holding companies.
All agencies, creative, media, direct, promotion, have – often painfully – joined the digital age where data and creativity converge. All now have to compete with PR firms and Production companies as the frontier between advertising and content is blurring. All may have to compete tomorrow with the data-rich Google, Amazon, Accenture or American Express to offer one to one targeted communications to millions of potential consumers
Selecting an agency has never been so difficult – making Marketer’s job even more complex. And the need to adapt more urgent.
For 12 years, leading consultants from 4 continents have been gathering in New York for a week of active meetings, unsderstanding how networks adapt, how new skills blossom, exchanging best practices, cooking good food for thought through workshops, exchanges and learning. They will hear vision from the top CEOs of global agencies, be inspired by insights on new trends by industry gurus. And this year, of course, they will hear from the Giants: Maurice Levy, Martin Sorrell, Michael Roth , David Jones and Miles Nadal. I bet you wish to be a fly in the room!
Betting can be a risky business. So can making ads about it, as Publicis Conseil in Paris recently discovered.
Publicis has launched two ads for the French bookmaker PMU (Pari Mutuel Urbain), which has handled horseracing bets since 1930, later diversifiying into other sports. Its humorous advertising always carries the slogan: “On parie que vous allez gagner” – “We bet you’re going to win.”
The latest ads suggest that betting is not always without consequences. One of them shows the Captain of the Titanic betting that he can steer the ship with his eyes closed. The rest is history. (more…)
You may not be Elon Musk (Tesla) disrupting the auto industry, or Jeff Bezos (Amazon and now Washington Post) seeking to disrupt the newspaper business. The former probably views himself in the technology/clean energy business. The latter, not in the book or news, but rather in the consumer service business. But disruption isn’t the only reason to consider a branding initiative. Many events can trigger consideration of a brand refresh. It’s not always necessary, but if a series of disappointing quarters, or new management, or upcoming new products are in the future, it may make sense. The undertaking may seem daunting, but the following points may help you get off on the right foot. (more…)
While the merger of Publicis and Omnicom has dominated the news of late, something else emerged that could have a more lasting effect on the advertising business. Sir Martin Sorrell has claimed that his holding company client dedicated “team” concept often is better for servicing clients than having client orchestrated individual agencies from different disciplines. The “team” is comprised of members from agencies within the holding company from different disciplines brought together in a newly formed entity and dedicated to a single client. Here are some of the pros and cons for the concept. (more…)
At the Press Conference Sunday, we heard the usual bla-bla that goes with the announcement : it is a merger of equals, John Wren and Maurice Lévy became real friends, the cultures of the companies will be respected, the combined companies will have a more complete client offering, this will create opportunities for employees and value for the shareholders, etc…
Dance with the Internet Giants
After over an hour, we finally heard the real reason: Size matters because we have to face Internet Giants. And it is not about media bargaining, it is more vital than this. Today, the Googles of this world have dramatically changed the rules of the game and the roles of the players. Big Data is competing with Big Idea. If the Agencies want to survive, they better take this into account: and it ain’t not cheap. (more…)