51 Marketing Trends found for Agencies / Holding companies

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Is Cannes Now a Corporate Davos, Manipulating Marketing's Future?

Bottom Line: The Cannes Lions gongfest has metamorphosed from a ritzy adland talkshop to a Davos-style exclusive club where the mighty of media, finance and marketing mingle behind closed doors to fashion the future of media and marketing.

Once upon a time the Cannes Lions was just another glitzy industry gabfest where agency creatives celebrated their awards over champagne and Vodka Red Bulls. But in the recession-ridden climate of 2011 the adland event on the Côte d'Azur has transmogrified into a cabal where the world's largest agency holding companies (WPP Group, Omnicom, IPGPublicis et al) discuss bottom line issues with media molochs like Google and Facebook, alongside marketing shot-callers Procter & Gamble, Unilever, WalMart and VW - plus a rat-pack of investment analysts and fiscal titans like Berkshire Hathaway. Croons Facebook's starry-eyed vp of global marketing Carolyn Everson ... 

[Estimated timeframe: Q3 2011-onward]

... "What is happening here is we are redefining the way all of us work together. We love the notion of partnering with entertainment and content providers and have them think about how to make content social from the start."

Ogilvy & Mather ceo Miles Young was thankfully more down-to-earth: "We used to be agents. Then we weren't sure what we were, as people were terrified by the digital disruption. Now, I believe we are publishers."

Mr Young was referring, of course, to the way in which tech firms, entertainment companies, designers, copy writers and ad executives now work together to find new ways of capturing consumers' fickle attention.

Despite the current explosive political situation in the Middle East and accelerating fears of a double-dip global recession, ad markets are booming again.

Says Andy Fennell, cmo at alcohol giant Diageo: "In the old days [circa 2008-09], we tried to squeeze [advertising] costs as much as we could. Now we are considerably increasing spending on content, particularly in the last year."

But what has driven advertiser's demand for higher quality content. According to Fennell: "People have a lower attention span."

And finally folks ... for afficionados of C-Suite sagacity, Time Warner chairman/ceo Jeff Bewkes offered this pearl of wisdom to the elite of of global media and marketing: "Advertisers have got to make cleverer ads, you have to learn from the creative industry."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5611

Is This the Beginning of the End for Global Agency Conglomerates?

Bottom Line: A hairline crack, then a trickle signals the bursting of a dam. Should the global agency conglomerates heed similar warning signs?

AdAge's Jack Neff, a shrewd veteran observer of the worldwide marketing game, has picked over the bones of a seemingly insignificant recent account move by global titan Unilever, which ignored Madison Avenue's elite to add Roth Partners, a tiny Mamaroneck, Westchester County-based startup to its Home & Personal Care products roster. Does this highly unusual move signal a drift from ... 

[Estimated timeframe: Q3 2011 onward]

... marketers' longstanding obsession with global-only shops? Mike Polk, Unilever's president for global foods, home and personal care, denies that the hiring is "a shot across the bows" for the giant's global agencies.

His decision, he claims, was based solely on the startup's ability to provide "a channel-agnostic approach" faster than other roster shops.

But, writes Neff, "it's also a clear sign that ... the global agency conglomerates stand to lose out if they can't deliver the comprehensive approach" that Polk insists Unilever wants. 

Although declining to describe Roth Partners' assignment, Polk says: "What Rick [Rick Roth, a former Ogilvy & Mather executive] and his team were able to offer was a breadth of channel expertise at the senior level against a whole new concept we're trying to build. Arguably any one of our partners should be able to bring that to us. But the challenge in general in this whole space is getting the most out of these agency models that should at their fingertips be able to this offer to us."

[Or as the old English proverb has it: "A nod's as good as a wink to a blind horse!"]

Nor is Polk simply hint-dropping as what he now expects of his agencies. He's had conversations with Omnicom CEO John Wren and WPP Group ceo Sir Martin Sorrell, among others, about his desire for a channel-agnostic integrated approach.

Polk told Neff he believes Unilever's agencies and holding companies will eventually meet his needs. They just couldn't do so quickly enough in this case!

"The assignment isn't a sign that existing agency or holding-company models are broken," says Polk, "but that they don't always work as they should."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: AdAge.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5598

Major US Marketers, Agency Groups Seize 'Do Not Track' Initiative

Fearing FCC intervention -- and fazed by the snail-like pace among browser giants and the digital ad industry in imposing a 'do not track' consumer privacy mechanism -- major advertisers, trade associations and agency groups are leaning heavily on all concerned to extract their digits. Among those with their foot on the gas pedal are ...

[Estimated timeframe: Q2 2011 onward]

... the Interactive Advertising Bureau, the Association of National Advertisers and the American Association of Advertising Agencies. And, according to Stu Ingis, counsel for the Digital Advertising Alliance, all are frantically parlaying with browser-makers including Microsoft's Internet Explorer, Google's Chrome and Mozilla's FireFox.

This sudden hyperactivity marks a major shift from the industry's former 'don't call us; we'll call you' stance - a seachange attributable to fears that the FCC will intervenein the absence of voluntary action by the industry.

A do-not-track tool available across all browser platforms would enable surfers to indicate their objection to the monitoring of their online activity.

Microsoft and Mozilla have already built such features into their recently updated browsers, but the tools are reliant on ad networks and others to honor people's do-not-track requests.

Says Jules Polonetsky, director of the Future of Privacy Forum, an industry-funded privacy think tank in Washington, DC: "It's a dramatic turnaround from where the industry was just weeks ago."

But whether or not the moves are sufficient to appease the internet privacy lobby remains to be seen.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5540

A New Global Model for Agency Holding Companies?

Agency makeovers are ten a penny - more often than not a cosmetic hodge-podge, recurring with the regularity of Leap Year and the relevance of a poodle grooming parlour. But this is seemingly not the case with Interpublic's Mediabrands unit, which this week announced a major change in branding and structure that could prove a template for the global agency business as a whole. Essentially the revamp ... 

[Estimated timeframe: Q1 2011 onward]

... scraps a decades-old model which Interpublic dismisses as antiquated. Likewise the operating models of all other global agency networks.

In MarketingTomorrow's opinion, IPG is 100% right on this one, and its move will likely be replicated (in one guise or another) by rivals WPP Group, Omnicom, Publicis Groupe and Havas

These holding companies (and most large independent shops) are currently structured around four key geographic regions: North America; Latin America; Asia Pacific; and the risible non-region known as EMEA (Europe, Middle East and Africa.

MediaBrands is replacing these mothballed groupings with three economic clusters: G14, World Markets and North America. The change, effective immediately, applies to IPG's twin global media-shop networks, Universal McCann and Initiative.

The G14 cluster comprises the powerful 'old' economies plus the emerging tigers, specifically:

  • Canada
  • Brazil
  • Canada
  • China
  • Egypt
  • France
  • Germany
  • India
  • Italy
  • Japan
  • Mexico
  • Russia
  • South Africa
  • United Kingdom

The World Markets group includes Austria, Belgium, Greece, the Middle East, Peru, Portugal, South Africa, South Korea, Turkey and Vietnam.

Jim Hytner, former president of EMEA, becomes president of the G14 division, while Mauricio Sabogal, ex-worldwide managing director at Initiative, becomes president of World Markets at Universal McCann and Initiative.

According to Mediabrands' global ceo, Matt Seiler, the move reflects a change in the way marketers do business. He claims it  is less about geography and more about priorities for growth, pinpointing the global locations where marketing investment will be most valuable.

Most marketers, Seiler argues, would say the UK and Japan have more in common than the UK and Portugal.

"The fact that one's in Asia and one's in Europe is completely irrelevant," Seiler says.

"There will always be a level within our organizations where there will be a common business reality that transcends the market differences. Our hope is to leapfrog where the other agency networks are in order to better serve our clients based on their actual needs, not just where those markets fall on [the] globe."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: AdAge.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5535

Publicis Eyes Emerging Market Acquisitions to Lift Revenues by 2014

Publicis Groupe, the world's third largest agency holding company (after WPP and Omnicom), aims to grow its revenue from emerging markets to 30%, compared with 22.7% at the end of 2010. The marketing services conglomerate expects to achieve this via more acquisitions rather than organic growth. Says chairman/ceo Maurice Lévy [pictured]: "We can still do better in emerging markets; the group now must increase its presence in emerging markets more rapidly."  To this end, Publicis aims to ...

[Estimated timeframe: Q1 2011- 2014]

... double its business in communist China within the next three years, the key to which, Lévy believes, will be the extension of Publicis' presence into new regions of the giant nation and winning more local client budgets.

Says Lévy: "We need to make acquisitions in all areas ... If we find a larger target, we will go for it."

With regard to the group's fiscal future, Lévy currently prefers to maintain an ample cash position and not opt for a massive shareholder dividend - a policy that will enable Publicis  to be ready for potential share buy-back opportunities - a situation that could arise in 2012.

The Publicis maestro needs no crystal ball to anticpate such an opportunity. It might well arise following the lapsing of a shareholder agreement with Japanese ad conglomerate Dentsu, which currently holds an approximate 11% in stake in the French company.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5495

Dentsu Hurls-Down Gauntlet for Dominance of India's Ad Market

Japanese advertising and marketing conglomerate Dentsu, currently number five in the global agency group rankings, has served notice on its larger rivals (WPP, Omnicom, Publicis and Interpublic) that it means serious business in the massive Indian market. Until now Denstu's presence on the sub-continent was via joint ventures with indigenous shops (Dentsu Communications, Dentsu Marcom and Dentsu Creative Impact) - all of which are now wholly-owned by the Japanese giant. Observers see the move as heralding ...

[Estimated timeframe: Q1 2011 onward]

... a major business development push in one of the globe's fastest growing consumer markets.

Dentsu reportedly acquired the shares it did not already own for Rs 240 crore, valuing the seven-year-old firm at nearly Rs 1,000 crore.

Dentsu has also brought Dentsu Mediatech and Clickstreamers under the Dentsu Communications umbrella with this deal. Former partner Sandip Goyal will resign from the board of the three advertising agencies and also step down as the chairman of the Dentsu India Group.

However Goyal will continue to work with new entity as founder/chairman.

Dentsu's Indian clients include Indiabulls, ICICI, Wipro, Acer, Toyota, Honda, Suzuki, Canon and Panasonic. The agency group reported national billings of Rs 1,200 crore in 2010.

Says Yuzuru Kato, Dentsu executive ffficer in charge of global business development: "By making these three companies wholly-owned Dentsu subsidiaries in the rapidly developing and increasingly important Indian market, we aim to enhance our infrastructure to provide the best integrated solutions to our clients in all the business domains."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MoneyControl.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5485

US Adland-Media Mergers & Acquisitions Expected to Rise in 2011

"[America's] ad industry and media companies should brace for a wild ride next year," predicts daily news bulletin MediaPost, citing a study released Wednesday by AdMedia Partners. Between 78% and 86% of respondents to the survey expect M&A for content and services, respectively, to come from strategic buyers and between 63% and 68% from financial buyers such as equity firms and investors. And there are reasonably positive feelings about the overall economy ...

[Estimated timeframe: Q2 2011 onward]

...  with over half (58%) of respondents believing US business will grow stronger in 2011 versus 2010.

Financial buyers, including private equity firms and investors, expressed a strong interest in investing in online companies. Sixty-two percent want to explore information and database publishing and online media, while 54% will look into social marketing and marketing technologies.

While companies believe their own business will grow, they also believe competition will continue to increase.

  • When asked where they were seeing newcomers entering the markets, 68% of service firms predict that new competition will come from marketing technology companies, and 48% expect the threat to come from content companies.
  • Twenty-nine percent of services firms indicated an interest in developing or acquiring content development or ownership in 2011, while 40% of content firms expressed a desire to develop or acquire marketing services capabilities.
  • A majority of respondents in the services sector see new entrants in their market from the marketing technology sector, and almost half from the content and media industry.
  • The rising need for digital media channels and convergence of marketing, media and technology will continue to evolve business models, and only 38% of respondents from the content sector believe online content companies have developed a sustainable business model.

Says Seth Alpert, managing director at AdMedia Partners: "The perception of increased convergence and the lines between marketing, media and technology become more muddled. Nearly half of the marketing services firms think content companies will compete against them, and others think the technology guys are coming after the services guys."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MediaPost.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5441

Are Media Planning Metrics Set for Seismic Change?

Adland afficionados of media measurement jargon are in for a field day if Matterhorn, a new media metrics product, eventually become the adopted norm in media-planning circles. However, us ordinary mortals who cant' tell our R&F (reach and frequency) from our GRP (gross rating point), CPI (cost per impression) or CPM (cost per 1000) might just understand the latest trend in media acronyms - ROI. And while those vital initials have always been a key (if vague) element in media planning, a new product just launched by US workflow systems specialist Telmar, promises to make it a very specific term in future.

[Estimated timeframe:Q1 2011 onward]

Matterhorn incorporates data analyzing the effectiveness of billions of dollars of marketing campaigns to understand the impact specific media - and changes in media plans - have on marketing goals.

Although those goals oftern are short-term sales results, the new Telmar system is designed to factor other important results as well, including brand awareness, differentiation and persuasion over the life of a media plan.

This has been the Holy Grail of media planning for years," says Telmar ceo Stan Federman, during an exclusive preview of the system for Media Daily News.

The Grail to which he refers is the elusive goal of linking media exposure to marketing results, and the multitude of attempts made on Madison Avenue - including expensive "single-source" measurement systems, and proprietary marketer and agency systems.

While many of those efforts continue, including a new collaboration between The Nielsen Company and Calatina Marketing, Federman claims that Telmar's system is designed to make the process easy for planners to use on-the-fly with criteria that are relevant for specific consumer marketing categories.

The data, which is based on years of statistical analysis by Marketing Evolution, a leader in the field of marketing mix modeling, will initially enable markets and agencies to compare upward of 147 ROI variables for fifteen discrete marketing categories, including automotive, financial services, entertainment and consumer packaged goods.

Federman said Telmar is offering those categories to one agency each for the first six months of the service, and then will open it to the general marketplace.

"Reach and frequency is great. CPM is great, but what's it really going to do in terms of moving my client's goods," Federman said. Now planners have the ability to take the time-consumer marketing ROI analysis and build it into their plans."


All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MediaPost.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5431

Havas Trailblazes Personally-Addressable Video Ads

Ads targeted at specific infividuals have long been the preserve of sci-fi movies. But with internet-TV teetering on the cusp of take-off, personally addressable video ads are now a reality ... as most of the planet's agency holding companies are aware. Currently leading the pack is Paris headquartered Havas, whose specialist arm Adnetic today (Friday) unveiled a deal with online video exchange Adap.tv that will enable marketers to target video commercials solely to a specified audience irrespective of the TV program individual members of that audience are watching at the time.

[Estimated timeframe: Q4 2010 onward]

According to Adnetik ceo Edward Montes: “Partnering with adap.tv is the next step toward accomplishing the Adnetik mission of maximizing an advertiser’s investment in media. Leveraging adap.tv’s unique marketplace and RTB platform in conjunction with the AIM targeting system provides marketers a breakthrough for the acquisition of highly valuable audiences via video. AIM was built to scale across multiple channels, so we’re excited to partner with adap.tv and look forward to providing marketers similar opportunities in additional addressable formats in the future.”

Through Adap.tv’s RTB (real time bidding) interface, Adnetik will help advertisers seamlessly buy targeted pre-roll video ads. Buyers gain complete transparency and control, as well access to a large pool of premium video inventory across the adap.tv marketplace. Combined with Adnetik’s sophisticated targeting tools, advertisers can easily increase the effectiveness of their online video advertising campaigns and achieve scale.

Toby Gabriner, President of adap.tv, said, “Online video advertising is complex and buyers want a simple way to achieve the reach and scale necessary for their online video campaigns. By providing access to our advanced RTB technology within a transparent, efficient and scalable environment, we are helping Adnetik create greater value for its clients.”

Clients who choose to work with Adnetik can bid for pre-roll, post-roll or interstitial video inventory, and reach up to 300 million users per day in a premium advertising environment. In addition to having control over where their ads are placed, advertisers can now buy video and display through one partner, saving time and expense.

Adnetik was established in late 2008, and now operates in six countries, including the United States, the United Kingdom, Mexico, the Netherlands, Spain and Brazil. The company AIMs to maximize the performance of an advertiser’s online audience investment by trading media and data assets between portfolios of advertisers and publishers in order to efficiently distribute each ad impression on behlaf of each advertiser. For more information, please visit our website at www.adnetik.com or email usinfo@adnetik.com.

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: MediaPost.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5353

Lévy Agrees to Helm Publicis Beyond Expiration of Present Contact in 2011

Meeting in Paris on June 1, the Supervisory Board of Publicis Groupe unanimously requested chairman/ceo Maurice Lévy (68) to carry on in the dual posts beyond his current contract's expiration date on December 31, 2011. Lévy agreed to oversee the transition period for as long as needed. He said: “The first months of 2010 were satisfactory and the current forecast for the full year is encouraging. The various measures announced today have been carefully worked out with the Appointments Committee and the Supervisory Board. No-one mentioned anything as vular as compensation.

[Estimated timeframe:Q3 2010 - 2012]

The Wall Street Journal reports analysts' view that Lévy is not only a hard act to follow, he's an impossible act to follow! But analysts, whose minds tend toward averages rather than adages, are likely to be be unaware of the old saying: "Cometh the hour, cometh the man." 

"I said that I would stay on board as long as needed," Mr. Lévy said in a statement. "I will make sure the transition happens when the time is right so that my succession takes place in the best possible conditions."

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=5226

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