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Tag: Martin Sorrell

  • Vice, WPP sign multi-million dollar ad deal

    Vice, WPP sign multi-million dollar ad deal

    MUMBAI: Vice and WPP’s media investment unit GroupM have signed a multimillion-dollar advertising deal that will take advantage of the millennial-focused media company’s international expansion.

    Vice co-founder and CEO Shane Smith and WPP CEO Martin Sorrell said that they agreed that millennials were the future. They were under-serviced, and the companies had to create more content.

    The particulars of the deal involve Vice working with GroupM to use Vice’s insights, content and data to build an advertising platform across all of Vice’s global multi-screen and over-the-top properties. The deal was announced at the Dmexco conference in Cologne, Germany.

    The deal is worth hundreds of millions of dollars in ad spending, according to Smith. A Vice spokesperson later added it is a multi-year, multi territory deal.

    GroupM handles over USD 102 billion in advertising billings, according to research company Recma. GroupM said it handles one out of three ads globally.

    Sorrell said that there were some difficulties working with Google and Facebook, and that there’ was a need to find another force.

    In June, Vice announced plans to expand its presence to 51 territories, including having a TV, mobile and digital presence in India and the Middle East and TV content throughout Africa.

    It also will add a 24-hour TV channel in Australia and New Zealand, where it already has a robust digital and mobile presence. Vice’s U.S. cable channel Viceland launched in February 2016, and it’s nightly HBO news show is slated to begin on 10 October.

    WPP at present has an 8.5 per cent stake in Vice. At one point, it owned up to one-tenth of the company but has since sold some shares. Source: cnbc.com

  • Vice, WPP sign multi-million dollar ad deal

    Vice, WPP sign multi-million dollar ad deal

    MUMBAI: Vice and WPP’s media investment unit GroupM have signed a multimillion-dollar advertising deal that will take advantage of the millennial-focused media company’s international expansion.

    Vice co-founder and CEO Shane Smith and WPP CEO Martin Sorrell said that they agreed that millennials were the future. They were under-serviced, and the companies had to create more content.

    The particulars of the deal involve Vice working with GroupM to use Vice’s insights, content and data to build an advertising platform across all of Vice’s global multi-screen and over-the-top properties. The deal was announced at the Dmexco conference in Cologne, Germany.

    The deal is worth hundreds of millions of dollars in ad spending, according to Smith. A Vice spokesperson later added it is a multi-year, multi territory deal.

    GroupM handles over USD 102 billion in advertising billings, according to research company Recma. GroupM said it handles one out of three ads globally.

    Sorrell said that there were some difficulties working with Google and Facebook, and that there’ was a need to find another force.

    In June, Vice announced plans to expand its presence to 51 territories, including having a TV, mobile and digital presence in India and the Middle East and TV content throughout Africa.

    It also will add a 24-hour TV channel in Australia and New Zealand, where it already has a robust digital and mobile presence. Vice’s U.S. cable channel Viceland launched in February 2016, and it’s nightly HBO news show is slated to begin on 10 October.

    WPP at present has an 8.5 per cent stake in Vice. At one point, it owned up to one-tenth of the company but has since sold some shares. Source: cnbc.com

  • Why Sir Martin Sorrell is keen on India

    Why Sir Martin Sorrell is keen on India

    Amsterdam: When you get a guy like Sir Martin Sorrell to keynote, you can expect to get some statements. That’s exactly what Sir Martin made at IBC 2016, the audiovisual equipment industry’s annual European get together at the RAI Exhibition Centre in Amsterdam, Netherlands.

    Sir Martin Sorrell waxed eloquent about Prime Minister Narendra Modi. Said he: “Modi has made an incredible difference. I don’t know what is with these guys whose second part of their name begins with the M initial. Modi. Argentina’s Macri. They all have done a..Merkel. May (Britain’s new prime minister) maybe.”

    He went on to state that India has supplanted Brazil for the WPP group. “India is very important. We have 50 per cent of the market. We are interested in India because of its population size, GDP growth and also the young population’s growth. Then, the intellectual firepower in India is really strong. If you look at India 25 years hence, and it is going to become even more important. And then there’s the Muslim population. The third biggest Muslim population, probably going to get even bigger.”

    Sorrell also praised the talent he has in India. “Our people are outstanding. People like Srini, Piyush, Ranjan, Tarun, they are absolutely outstanding people. If you could export them from India, or if we had the same quality of people around the world, I could retire,” he said.

    “I only own two per cent of the company; but I am identified with the company,” he responded to a question whether he would retire. “I will carry on as long they will let me. WPP is not a matter of life or death for me, it is more than that. They will carry me out to the glue factory.”

  • Why Sir Martin Sorrell is keen on India

    Why Sir Martin Sorrell is keen on India

    Amsterdam: When you get a guy like Sir Martin Sorrell to keynote, you can expect to get some statements. That’s exactly what Sir Martin made at IBC 2016, the audiovisual equipment industry’s annual European get together at the RAI Exhibition Centre in Amsterdam, Netherlands.

    Sir Martin Sorrell waxed eloquent about Prime Minister Narendra Modi. Said he: “Modi has made an incredible difference. I don’t know what is with these guys whose second part of their name begins with the M initial. Modi. Argentina’s Macri. They all have done a..Merkel. May (Britain’s new prime minister) maybe.”

    He went on to state that India has supplanted Brazil for the WPP group. “India is very important. We have 50 per cent of the market. We are interested in India because of its population size, GDP growth and also the young population’s growth. Then, the intellectual firepower in India is really strong. If you look at India 25 years hence, and it is going to become even more important. And then there’s the Muslim population. The third biggest Muslim population, probably going to get even bigger.”

    Sorrell also praised the talent he has in India. “Our people are outstanding. People like Srini, Piyush, Ranjan, Tarun, they are absolutely outstanding people. If you could export them from India, or if we had the same quality of people around the world, I could retire,” he said.

    “I only own two per cent of the company; but I am identified with the company,” he responded to a question whether he would retire. “I will carry on as long they will let me. WPP is not a matter of life or death for me, it is more than that. They will carry me out to the glue factory.”

  • Martin Sorrell pegs WPP’s India biz at $600 mn; thrust on organic growth

    Martin Sorrell pegs WPP’s India biz at $600 mn; thrust on organic growth

    MUMBAI: Just a few days after meeting Prime Minister Narendra Modi in New York, WPP CEO Martin Sorrell, in his visit to India was bullish about the market and pegs the company’s business here at $600 million with a strong thrust on organic growth.

     

    “We are very aggressive in terms of growth here in India and this year we are expecting to grow by 10 per cent, which is double of the global growth rate (4.8 per cent). Net sales growth in India is roughly same as the revenue growth, which is 10 per cent while globally it’s three per cent. So overall, we are doing very good across the board and have no complaints,” he said.

     

    “Our business in India is just under $600 million in revenue. We are proud of our business here and we have a very large market share,” asserted Sorrell.

     

    He further added, “Though we will have acquisitions, organic growth will be key in India. If your business is $600 million and you are growing at 10 per cent per annum, you can’t find acquisitions in India in $60 million. So organic growth will continue to be the principle way that we grow in the Indian market.”

     

     

    Events to watch out for in 2016:

     

    Sorrell is of the opinion that the 2016 Rio Olympics will be a major event. “The backdrop in Rio de Janeiro will be one of the best backdrops to be in,” Sorrell says.

     

    Apart from the Olympics, the US presidential elections as well as the UEFA European Championship will also be key events to watch out for in 2016 according to Sorrell.

     

     

    Key for advertising industry:

     

    Sorrell predicts that the key for the company would be to grow at the rate of GDP growth with little or no inflation.

     

    “The thing that worries me the most is not the geo-political issues, be it Greece or US deficit, or the Middle East, but the failure of companies to invest long term,” he emphasised.

     

     

    Importance of People:

     

    Sorrell believes that people are the most important part of a company and clients choose agencies on the basis of that.

      

    He said, “Our revenues are at $19 billion around the world and at $23 billion including associates. Of the $19 billion, $12 billion is invested in people because I believe that the key differentiator between agencies is people. That’s how clients choose one agency over the other.”

     

     

    BARC and TAM JV

     

    The biggest outcome of the team up between two Indian television measurement agencies, as per Sorrell is both companies accepting each other’s business models. He was also of the opinion that TAM should have been more flexible in terms of number of meters. He said, “I think we will get to one equilibrium that gives some consistency and validation, which is really important.”

  • WPP signs landmark lease for Shanghai Campus

    WPP signs landmark lease for Shanghai Campus

    MUMBAI: Martin Sorrell led communications services group WPP has signed a landmark agreement with Nan Fung Group and B.M. Group to lease 20 floors and 41,000 sqm at 399 Heng Feng Road, Shanghai, representing one of the largest office leasing deals ever signed within the city’s central business district areas.

     

    The new building will house the WPP Shanghai Campus, one of the most ambitious co-location efforts ever undertaken by WPP. The WPP Shanghai Campus will bring together 26 WPP companies and more than 3,000 people, currently spread across 10 locations.

     

    WPP companies to be relocated include Blue Hive, GroupM, Hill+Knowllton Strategies, Millward Brown, J. Walter Thompson, Ogilvy & Mather, Sudler & Hennessey, and TNS. Move-in is expected to commence at the end of 2015. The office space housing the WPP Shanghai Campus is expected to gain LEED Gold certification.

     

    “China is now WPP’s third largest market, and our commitment to China is deeper than ever. We are proud to support the development of the city of Shanghai and provide our people with the best facilities,” said Sorrell.

     

    In Greater China, WPP companies (including associates) have revenue of $1.5 billion and employ 15,000 people. “One of WPP’s key objectives is horizontality – promoting cooperation across our group companies to improve outcomes for our clients — and bringing our people in Shanghai into this location is an important step towards this goal,” Sorrell added.

     

    399 Heng Feng Road is part of a massive three-stage redevelopment project in the Zhabei District, slated to include a 110,000 sqm shopping mall, six office towers, two luxury boutique hotels, and luxury residential sections and estimated for completion in 2017.

     

    “The Nan Fung Group is delighted that WPP has chosen our project as their campus in East China. Their decision illustrates the increasing attractiveness of the Zhabei District to the international business sector. We regard WPP as a long term partner and we look forward to further working with them throughout the region. We will strive to provide to WPP, as well as other tenants excellent service. Taking this opportunity, on behalf of Nan Fung Group and B.M. Group, our joint venture partner, I would like to thank the officials in the Zhabei District for their strong support in making this project a success,” said Nan Fung group CEO Antony Leung.

  • GroupM ventures into sports and entertainment rights under brand ESP

    GroupM ventures into sports and entertainment rights under brand ESP

    MUMBAI: GroupM is expanding its sports and entertainment offering under a new global agency brand, ESP, which will comprise two separate businesses: ESP Properties and ESP Brands.

     

    Both businesses will be part of WPP’s media investment management company GroupM, but remain independent of its media-buying operations.

     

    ESP Properties will be GroupM’s first company dedicated to serving rights holders from the worlds of sports and entertainment, including federations, leagues, events, teams, publishers and venues. It will offer a thorough assessment of their commercial programs, and advise how to grow the revenue they generate through a full range of services across data, digital and content development. It will also offer global partnership sales on behalf of rights holders, both to existing WPP brand clients and beyond.

     

    ESP Properties will be formed through new hires, the integration of existing GroupM business units including leading sponsorship agency IEG, and the acquisition of data-driven sports marketing agency Two Circles. It will collaborate with specialists from the WPP network to deliver a full range of marketing services. It will also work with GroupM Entertainment on new programming concepts and, where mutually beneficial, provide direct finance for new projects.

     

    ESP Properties will launch with over 150 staff in hubs across New York, Chicago, London and Singapore, plus additional teams in Los Angeles, Sao Paulo and Dubai amongst others. It launches with a roster of globally recognised clients including the All Blacks, Cleveland Cavaliers, Valencia CF, England and Wales Cricket Board, Pele, and City Football Group.

     

    WPP CEO Martin Sorrell said, “There is significant and growing demand on the part of clients to invest more in content and sports but few in our industry have had a serious response to this. Our new ESP Properties will bring creative power and commercial insight to rights holders for the first time, providing unmatched opportunities to better tailor their offerings to the needs of today’s brand sponsors. ESP will also work hand in hand with our recent investment in Bruin Sports to provide our clients with access to many high-value media and sponsorship opportunities.”

     

    GroupM is also expanding its support for brands to plan, negotiate and activate sports and entertainment partnerships by growing the specialist teams in its individual media agencies. These specialist teams will be underpinned in key regions by the second business within ESP, ESP Brands. ESP Brands will be an evolution of the former partnerships consultancy GroupM ESP.

     

    GroupM Global president and ESP chairman Dominic Proctor added, “The global launch of ESP Properties brings leading commercial and creative capabilities to some of the world’s most celebrated names across sports and entertainment. Sport is a driving force in media and we want to serve the market better by assisting rightsholders in optimizing their properties and creating more winning partnerships with leading brands. At the same time we will ensure we work more efficiently on behalf of brands by providing even more resources for the specialist sports and entertainment practices that are embedded in our GroupM agencies, underpinned by a central team in key regions, ESP Brands.”

     

    GroupM ESP global CEO John Kristick will lead the new ESP Properties as CEO. Kristick is a senior sports marketing executive with nearly two decades of international experience, including being appointed managing director for the USA Bid Committee to host the 2022 FIFA World Cup, and previously working for more than ten years in Europe serving as an executive director for Infront Sports & Media from its inception.

     

    The business will be led regionally by Jonathan Hill (EMEA), Laren Ukman (North America) and JinWei Toh (APAC). ESP Brands will be managed regionally in North America by Bryce Townsend and through the individual GroupM agencies in other regions.

     

    Kristick said, “ESP Properties’ offering is truly unique in meeting the changing needs of the world’s leading federations, events, leagues, teams and other rightsholders. We have brought together a range of experts from across GroupM, such as IEG with over three decades of experience in sponsorship consulting, and our new partners Two Circles who have been leading the way in data-driven sports marketing. By combining this strategic expertise with unmatched understanding of how to navigate potential brand partnerships, we can uncover new revenue opportunities for rights holders worldwide.”

     

    It may be recalled that WPP recently invested in Bruin Sports Capital and this move is part of the agency’s growing commitment to content.

     

    Bruin Sports Capital founder George Pyne said, “ESP Properties provides rights holders around the world with a very powerful combination of strategic services and sales expertise. The ability to access the group’s unmatched global resources and corporate client base will be very helpful as we create value for the relevant businesses Bruin operates. We also anticipate collaborating with ESP Properties to jointly deploy capital and create new businesses as opportunities arise.” 

  • WPP’s Kuvera joins hands with China’s mobile platform PaiPai

    WPP’s Kuvera joins hands with China’s mobile platform PaiPai

    MUMBAI: Kuvera, a wholly owned WPP company specializing in e-commerce in China has forged a partnership with Paipai, China’s social commerce platform on mobile owned by JD.com. The deal names Kuvera as Paipai’s strategic partner in a new initiative of developing mobile social e-commerce in China for global brands.

     

    Under the agreement, Kuvera acts as a total solution provider for WPP’s clients to conduct online retailing business on Paipai’s e-commerce platform, utilizing social networking and a variety of marketing tools; if circumstances permit, Paipai will recommend WPP agencies to Paipai’s merchants, as a preferred service provider of marketing and promotion services and as a strategic partner of Paipai.

     

    Specifically, Kuvera becomes a qualified service provider on Paipai and will assist Paipai to recruit new brand merchants. Kuvera will provide a full spectrum of services to clients, including transaction services, storefront management, brand promotion and customer relationship management (CRM). In turn, Paipai will provide clients with necessary support and resources, including traffic, technical solutions and merchandising staff. 

     

    The agreement also provides Kuvera access to Paipai’s advertising inventory, including its organic traffic and traffic from social media which Paipai connects with, such as WeChat and QQ.

     

    “It is a milestone that we are going to provide a total solution package including advertising and online sales for global brand names under social e-commerce context. Through Paipai and Kuvera, we hope more global brand names can enjoy the benefit and excitement that social e-commerce brings to them and we hope JD and WPP will have further and tighter co-operation along the way,” said JD.com CEO Richard Liu. 

     

    “China’s consumers are among the world’s most engaged in the e-commerce, social networking and mobile spaces. This agreement provides WPP and our clients the ability to leverage Paipai and JD.com’s platforms,” added WPP CEO Martin Sorrell. 

     

    “Brands are seeking to reach Chinese consumers more effectively, particularly over social and mobile networks. With this agreement, our clients now have greater access to social commerce channels, including the highly popular WeChat ecosystem,” said WPP China CEO Bessie Lee.

     

    In 2014 in Greater China, WPP companies (including associates) generated revenue of $1.5 billion with almost 15,000 people, with digital revenue around $450 million. WPP’s global digital revenue was $6.9 billion in 2014, representing 36 per cent of the Group’s total revenues of $19 billion. 

     

    “We are excited to have WPP as a strategic partner of Paipai. With WPP’s unparalleled branding and advertising expertise globally, we together will provide a total solution including brand and long tail ads and marketing strategy to our customers in the social commerce universe,” said Paipai president Kate Kui.

     

  • WPP reports record ?1.5 billion annual profit

    WPP reports record ?1.5 billion annual profit

    MUMBAI: For 2014, Martin Sorrell’s WPP Group reported a record ?1.5 billion annual profit in 2014, which was up by 12 per cent on reported revenue of ?11.53 billion, which was up 4.6 per cent year on year.

     

    WPP, which owns agencies such as Ogilvy, J. Walter Thompson, and Milward Brown, said 2015 was off to a flying start. Like-for-like revenue in January rose 6.7 per cent, with like-for-like net sales up 3.9 per cent, which WPP says was stronger than the final quarter of 2014 and 2014 itself.

     

    The agency expects to grow net sales by three per cent in 2015 and is looking at a headline operating margin target of 0.3 margin points, excluding the impact of currency.

     

    WPP’s reported billings at ?46.186 billion, were up 6.8 per cent in constant currency driven by a strong leadership position in net new business league tables. On the other hand, WPP saw like-for-like revenue growth in all regions, led by strong growth in North America, United Kingdom and Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and by all sectors, with particularly strong growth in advertising and media investment management and branding and identity, healthcare and specialist communications (including direct, digital and interactive).

     

    The group’s like-for-like net sales growth were at 3.3 per cent, with the gap compared to revenue growth more than the first half, as the scale of digital media purchases in media investment management and data investment management revenue continues to increase.

     

    WPP saw EBITDA growth of 0.7 per cent, up 7.5 per cent in constant currency, reflecting currency headwinds, but giving 0.2 margin points improvement, to 19.0 per cent on net sales, with like-for-like operating costs (+3.1 per cent) rising slower than net sales.

     

    PBIT increase of 1.1 per cent to ?1.681 billion, up eight per cent in constant currency was observed for the year. Net sales margin, a more accurate competitive comparator, up 0.2 margin points to an industry leading 16.7 per cent, up 0.3 margin points in constant currency, in line with target.

     

    WPP saw exceptional gains of ?196 million largely representing gains on the AppNexus and Rentrak transactions completed in the second half, together with other gains of ?45 million, including gains on the re-measurement of the Group’s equity interests, partly offset by ?89 million of restructuring costs, ?39 million of IT transformation costs and ?7 million of investment write-downs, giving a net exceptional gain of ?61 million.

     

    WPP was recognised again in 2014 for creative and effectiveness excellence with the award of the Cannes Lion to WPP for the most creative Holding Company, for the fourth successive year, since the awards inception and another to Ogilvy & Mather Worldwide, for the third consecutive year, as the most creative agency network. In another rare occurrence in the industry, in 2014 Grey was named Global Agency of the Year 2013 by both US trade magazines Ad Age and Ad Week. For the third consecutive year, WPP was awarded the EFFIE as the most effective Holding Company.

  • Publicis-Omnicom’s $35 billion merger terminated

    Publicis-Omnicom’s $35 billion merger terminated

    MUMBAI: Paris based Publicis Groupe and New York based Omnicom Group have decided to part ways. The duo through a press statement has jointly announced that they have terminated their proposed merger of equals by mutual agreement, in view of difficulties in completing the transaction within a reasonable timeframe. With this announcement the proposed $35 billion merger has come to an end.

     

    A statement released by Publicis Groupe and Omnicom Group states, “The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.”

     

    This decision was unanimously approved by the Management Board and the Supervisory Board of Publicis Groupe and the Board of Directors of Omnicom. In a joint statement, Publicis Groupe chairman and CEO Maurice Lévy and Omnicom Group president and CEO John Wren stated, “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders. We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another.”

     

    The announcement comes after the meeting of the Supervisory Board of Publicis Groupe, chaired by Madame Elisabeth Badinter which was held on 8 May in order to decide on the action to be taken regarding the proposed merger of equals with Omnicom Group.

     

    The Supervisory Board examined the recommendation of the Management Board, which has unanimously voted to terminate the proposed merger of equals between Publicis Groupe and Omnicom Group.

     

    Lévy in an earlier statement said, “The two groups each have a brilliant track record. This merger was always one of opportunity, not necessity. The teams at Publicis Groupe worked diligently to complete the merger, but, in view of the obstacles encountered, the execution risk continued to increase. The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one. Prolonging the situation could have led to the diversion of the Group’s management from its principle function: to best serve our clients. Our paths diverge today with mutual respect. Publicis Groupe will continue to pursue and accelerate the implementation of its ambitious strategic plan for 2018. I am very confident in our ability to successfully see this through and to achieve all our goals.”

     

    The deal which came in the limelight in July, if worked out, would have created the world’s largest advertising holding company, impacting mostly the Chicago advertising market. The planned merger had called for a 50-50 ownership split of the equity in the new company, Publicis Omnicom Group, with Wren and Levy serving as co-CEOs for 30 months from the closing.

     

    According to an Ad Age report, the proposed Publicis-Omnicom merger would have created a company with a combined market cap of $37 billion and joint 2013 revenues of nearly $24 billion. Combined, the duo could have leapfrogged London-based WPP as the world’s largest advertising holding company.
     

    With the merger being called off, WPP Group CEO Martin Sorrell can have a good laugh. Sorrell while talking to CNBC from China said, “I think this deal was driven by ego issues and emotional issues, I think both CEOs wanted to try and dislodge WPP from its number one perch and so it was emotional and egotistical. It was also a case of eyes being bigger than your tummy.”