MxMIndia

Tag: Mark Read

  • The question really is how WPP is going to transfer the legacy of JWT and Y & R into a Johnny-come-lately such as VML, writes Prabhakar Mundkur

    WPP fells two great brands in one stroke

    Courtesy Pexels, under Creative Commons Licence

     

     

    Prabhakar MundkurBy Prabhakar Mundkur

     

    Is this the final death of advertising as we know it? The last nail on the coffin? Or is it that the communications conglomerate that started it all has forgotten what is branding in their quest for “interconnectivity of brand experience, commerce and customer experiences” words that Jon Cook, Global CEO of VML used to the announce the death of Thomspon, previously J Walter Thompson and Y & R, previously Young & Rubicam.

    Not to speak of Wunderman.  

    Although I don’t think Wunderman was nearly as great a brand as either J Walter Thompson or Y & R, it had certainly gained a reputation starting from its origins as a direct marketing agency.  Somehow I am unable to shed tears for Wunderman but to think that both J Walter Thompson and Y & R do not exist even as the initials depresses me. To me, it is the death of creativity and strategy more than the death of advertising. The fact that they had been reduced to initials itself was depressing but I had just begun to accept it.

    Strangely, the erstwhile JWT which was named after its founder J Walter Thompson had sold the business at the turn of the early twentieth century because he thought that advertising had no future.  While it did well in the intervening 100 years or so it is strange that his spooky prediction about the future of JWT should finally turn out to be true. 

     

    So what is VML?

    Do those 3 letters conjure up any images in my mind? I am afraid not. Who do those initials belong to and what do they mean to the rest of us? To me, I am sorry to say, it sounds like a company producing scooters at best. Maybe that classifies me as an advertising dinosaur. But even dinosaurs must have their say on history.

    John Valentine, Scott McCormick and Craig Legible started VML in 1992 in Kansas City.  I never thought that a great communications company would emerge out of Kansas City. Kansas city is known only for BBQ and a mighty good time!

     

    The Challenge for WPP

    The question really is how WPP is going to transfer the legacy of JWT and Y & R into a Johnny-come-lately company such as VML. What happens to 100 years of thinking about advertising and branding that made JWT famous?  Thanks to stalwarts like Stephen King, Jeremy Bullmore and many others.  People who laid down the foundation of the advertising business and built interesting theories about how communication worked. Or the creativity of Y & R who is known to have produced the first colour television commercial in advertising history? Or the theory of Archetypes and how that could be brought to hear on advertising which first emerged from writers that worked at Y & R?

    What happens to the legacy of proprietary knowledge, analytical rigour and creative solutions  these two great advertising agencies brought to bear on the rest of the communications industry?

    Or are 100 years of history and knowledge going to dissolve in the vacuous nothingness of AI, technology, customer experience and commerce? That is a lot of words that somehow  don’t convey much to me but are found in the press releases of the new age communications companies.

    In retrospect, Wunderman-Thompson was a good example of bad branding from the world’s largest communications conglomerate. Why would they have  delegated Thompson to second place in the first instance? More people surely knew Thompson rather than Wunderman. And in process kill an over 130 year old brand with much higher equity. 

    Wunderman was a small entity. Thompson was a big entity.  Wunderman-Thompson was a non-entity. So I am not even sure I  should be shedding any tears now that both of them are dead. 

    I am sure  “Commodore”  J Walter Thompson as he was lovingly called must have flipped a few times sadly in his grave last evening when he saw the VML press release.

    Goodbye, J Walter Thompson, Young & Rubicam and Wunderman.  

    Hello, VML, whoever you are!

    And Sir Martin what do you think of what your successor is doing?

     

    PS: Meanwhile, Sir Martin’s successor has just got himself another five-year contract from the Board. Share price is trending at a third of its 2015 peak and lagging behind Publicis and Omnicom to No 3.

     

  • As part of WPP's global transformation journey

    WPP launches Global Engineering Centre in Chennai

    By Our Staff

     

    WPP has announced the launch of a new Global Engineering Centre (GEC) in Chennai, India. The centre will play a role in further strengthening WPP’s global service offering, by partnering resilient, industry-leading technology and skills with creative brilliance.

     

    Mark Read
    Mark Read

    Speaking on the launch, Mark Read, CEO – WPP said: “The pandemic has caused a fundamental shift in the way most businesses operate. Technology, now more than ever, is the primary driver of growth, and will be critical to help us build back not just better – but best. WPP is genuinely invested in growing our presence in India and increasing our focus on recruiting highly skilled talent at a local level – not only in our creative industries but also in the technology industry. Our new WPP colleagues in Chennai will play a pivotal role in further developing our technology offering – and will have the unique opportunity to work together with colleagues in an industry that has the power to create positive change at scale. Something I’m very excited about.”

     

    CVL Srinivas
    CVL Srinivas

    Added CVL Srinivas, Country Manager, India, WPP: “India is already playing a major role in WPP’s transformation with over 4000 people working across several global Technology COEs. The GEC will add to this talent pool and help us scale technology across our global company. We are excited to welcome our colleagues in Chennai.”

     

  • In winning the Coca-Cola business, Mark Read follows Sir Martin Sorrell in integrating group firms for pitching globally, writes Prabhakar Mundkur

    The Rise of the Holding company

     

     

    By Prabhakar Mundkur

     

    Prabhakar MundkurWhen WPP won a large part of the Coca-Cola business worth $4 billion, it was an affirmation that the holding company once looked upon as just a holding company that does nothing but inspects individual company, P&Ls had transformed themselves into an integrator of their individual companies.

     

    True integration has eluded the ad agency business for over two decades now, if not more. Sir Martin Sorrell took the lead for integration by pitching for large businesses globally. Mark Read has followed quickly in his footsteps by employing the same methods to win the global Coke business easily one of the top advertisers in the world for a long time.

     

    Conflict of Interest

    Once upon a time, agencies got bogged down by conflict of interest to handle more than one account in the same category.  This is because the traditional agency was unable to build an effective firewall that convinced clients that conflicting accounts could be handled without a leak of confidential information within the agency. No longer.

     

    Because holding companies have been able to put together special teams hand-picked from each of their operating companies offering a wide range of disciplines for mainline advertising to digital, to form individual units that handle each conflicting account, it promises a very effective firewall which means that clients are no longer worried about conflict. WPP’s GTB for Ford, Red Fuse for Colgate-Palmolive and now Open X for Coke are just examples of how these specialist units can operate.

     

    While it may seem like an innovative way to handle clients, the Japanese have been doing this for the last many decades. If you have been to the Dentsu or Hakuhodo buildings in Tokyo, you will notice that there can be as many as three or more automobile accounts being handled by these agencies, with each agency unit being located on a different floor.

     

    For example, Nissan could be on the 13th floor, Honda on the 17th, Suzuki on the 20th and Toyota on the 25th. The beauty of this structure is that employees working on a particular floor do not have access to any floor but their own therefore providing an effective firewall that ensures confidentiality of the individual account.

     

    WPP’s Coke win includes creative media and marketing technology business for 200 countries so it is a fully integrated business. I quite liked the Open X name for the WPP unit which handles the Coke integrated business.  Unusual for Coke who has been hesitant to commit themselves to any agency in the past although IPG has had the longest run.  I remember a time when Coke thought that it did not need their creative agency McCann and began flirting with individual Hollywood producers for their commercials.

     

     

    It’s a pity that the major new creative platform of Real Magic was launched just two weeks before the WPP announcement.  While I thought that the Real Magic commercial worked well, initial feedback from the gaming community suggests that it has put the brand back by a few years.  Tim Crow sports and eports advisore says, “Gaming is not a divided world. They are a big tribe that doesn’t need Coke’s help to connect with each other because they already are. Games are about fun and the competition brings people together… Coke [came off as] tone deaf about gaming and what it is. They’ve put themselves back years with the gaming community with this globally.”

     

    It would be interesting to see how WPP takes this theme of Real Magic forward.

     

     

  • VMLY&R Commerce will be WPP’s new end-to-end Creative Commerce Company

    Geometry hooks up with VMLY&R to set up VMLY&R Commerce

    By A Correspondent

     

    WPP has announced the launch of VMLY&R Commerce, a new end-to-end ‘Creative Commerce Company’ combining the talent and scale of two thriving global offerings. VMLY&R Commerce will operate as a distinct company within the VMLY&R global network. VMLY&R Commerce will be fully operational from January 1, 2021, and the integration of the agencies’ teams and assets will continue through 2021.

     

    Notes a communique: “WPP agencies Geometry and VMLY&R will bring together their respective commerce capabilities to provide world-leading expertise and delivery for clients at a time of unprecedented global growth in ecommerce. VMLY&R Commerce will be led by Global Chief Executive Officer Beth Ann Kaminkow, currently Global CEO of Geometry. VMLY&R Commerce will be central to the VMLY&R network’s total brand and customer experience offering. It will help connected brands grow by unifying client strategies around commerce to drive both brand equity and conversion.”

     

    Said Beth Ann Kaminkow: “Consumer experiences today are centered on commerce, making it increasingly important to our clients’ marketing and media decisions. As the pandemic accelerates new consumer behaviors and expectations, commerce is fast becoming the next channel for the most creative engagements and experiences. With the launch of VMLY&R COMMERCE, we can now offer our clients creative commerce at scale, harnessing data and technology to build brands and sell products across channels.”

     

    Added Jon Cook, VMLY&R Global CEO: “I’m thrilled to work with Beth Ann on the evolution of our collective commerce offering through VMLY&R Commerce. We have been partnering closely across many clients and it is clear we share a vision and belief in the role commerce plays in a consumer’s journey and creating connected brands. Importantly, we both have a deep passion for leading our businesses with a focus on culture – both internally and with our client partners which is essential in creating a new company built for the future.”

     

    Said Mark Read, CEO of WPP: “2020 has seen explosive growth in ecommerce as brands adapt to a new reality. This new company will offer outstanding creativity, industry-leading commerce expertise, and sophisticated data and technology skills to help brands grow in an omni-channel world. It also meets clients’ needs for simple, tightly integrated propositions from their marketing services partners.”

     

     

  • AKQA and Grey launch new network, to offer clients “outstanding creativity, innovation and brand-building at global scale”

    Grey to merge with Akqa. WPP creates AKQA Group

    By A Correspondent

     

    It should’ve been a no-brainer. JWT and Y&R both lost their age-old identities thanks to mergers with other group entities. Communications agencies Burson-Marsteller and Cohn & Wolfe also merged to form BCW. Now WPP has announced that’ AKQA and Grey are uniting to form a new network model, AKQA Group. Grey is the well-known creative-led agency and AKQA is accomplished for its innovationand experience design skills. “With heightened demand for digital transformation and technology-driven capabilities, the combination will create a powerful new proposition for clients as a leading creative solutions company with a worldwide footprint,” notes a communique, adding: “The AKQA Group will have 6,000 people in more than 50 countries and a blue-chip client roster that includes more than half of the Fortune 500’s top 20. It will provide a full range of brand experience capabilities across all communications platforms, strengthening the skills and services of both companies for clients.”

     

    AKQA founder Ajaz Ahmed and Grey Worldwide CEO Michael Houston will partner to lead the new Group. Ahmed will become Chief Executive Officer and Houston will become Global President and Chief Operating Officer of AKQA Group. The AKQA Group will launch with the AKQA and Grey brands, which will be integrated over time into a single company based on client and market needs. The management team and creative leadership will be announced in the coming weeks, comprising leaders from AKQA and Grey.

     

    Said Ajaz Ahmed: “Our goal is to expand horizons, combining the curiosity, ambition, imagination and pioneering spirit of a startup with the reach of a global enterprise. This is an unparalleled opportunity for AKQA and Grey to bring our shared assets to life into a modern, creatively-led company, building upon our inspiring and useful work to create value for our clients, people and communities.”

     

    Added Michael Houston: “This exciting new partnership begins with what consumers expect, clients value, and brands need. Forming a new company that can deliver culture-driving ideas through technology at speed and scale is a potent proposition for our clients, large and small, and will allow us to offer the most powerful creative solutions in the industry.”

     

    Said Mark Read, CEO of WPP: “Our clients want outstanding creativity, powered by technology expertise and delivered at a global scale. This new company is designed precisely to meet those needs and is another important step forward in building our future-facing offer for clients.”

     

     

  • WPP and kidtech platform SuperAwesome have announced a partnership to advance the standards of privacy for children in the global digital ecosystem

    WPP & SuperAwesome announce partnership to ensure privacy & safety for kids and families

    By A Correspondent

     

    Given the shifts in children’s online consumption patterns, WPP has announced a parternship with kidtech platform SuperAwesome.

     

    WPP agencies and clients will have access to the team at SuperAwesome and its kid-safe engagement platform and insights tools, including the company’s KidAware certification programme that ensures online engagement complies with the latest privacy legislation and advertising standards. The partnership builds on existing controls GroupM has helped to establish that excludes or minimises the risk of exposure to unsuitable content for children in social media.

     

    Said Mark Read, CEO of WPP: “We’re already seeing big changes in family life as a result of the coronavirus pandemic and how we all interact with technology. WPP’s partnership with SuperAwesome is part of our commitment to ensure children’s safety while engaging with content online. It sets the first benchmark for digital privacy for children and provides our clients with access to industry-leading strategies and the latest privacy-by-design technology for the under-16 digital media space.”

     

    Added Dylan Collins, CEO of SuperAwesome: “Kids’ opinions are increasingly important in the family and for society. Retail, personal care, entertainment and brands in many other verticals understand the influence youth have on their businesses, but have been struggling to understand how to engage responsibly and compliantly. It’s a business imperative to evolve how we interact with and support the under-16 audiences, especially as their digital consumption patterns will be forever changed by their Covid-19 experiences. We are proud to be working with WPP and their clients to proactively lead best practices for kid-safe digital engagement everywhere.”

     

     

  • The global leaders from WPP are in Mumbai for a week-long visit to engage with key clients, partners and local WPP teams

    India is #5 market for WPP. Growth is 10%, says Mark Read in maiden presser

    By A Correspondent

     

    Mark Read, CEO, WPP with CVL Srinivas, India Country Manager, WPP

    India is marketing services conglomerate WPP’s fifth largest market and the business is growing by 10% year-on-year, said CEO Mark Read in his maiden press conference in the country. Read also officially inaugurated the integrated Bay99 campus in Mumbai. WPP’s global executive committee is also currently in Mumbai for a week-long visit to engage with key clients, partners and local WPP teams.

     

    Added Read: “Creativity powered by technology is critical to meeting client needs and the demands of a dynamic marketplace. Our investment in our campuses supports WPP’s new sense of purpose and enables us to instil a culture of creativity, collaboration and openness while attracting and retaining the best people. India is very important for WPP, as one of our fastest-growing countries and a top-tier global market.” Read also confirmed the announcement of winning the global advertising business of tech major Intel.

     

    Added CVL Srinivas, WPP’s Country Manager for India: “There is a real internal evolution that’s ongoing at WPP in India in the way that our teams work. Our teams are now better integrated and working in close alignment with our clients. We are reinventing ourselves to respond to structural changes in our market and to capture the new opportunities for growth. Beyond that, we are also excited about the work that we are doing in sustainability and social purpose.”

     

    Read and Srinivas spoke on how the integration of all WPP units in one office building will help build synergies. Srinivas spoke of a similar integrated office coming up in Gurugram.

     

     

  • Ogilvy will shift its office to the new location on Monday, August 26

    Ogilvy, JWT (now Wunderman Thompson), GroupM, etc to relocate to new WPP campus in Sahar

    By A Correspondent

     

    Soon arch rivals Ogilvy and Wunderman Thompson will work under the same roof. As part of its global growth strategy, WPP has announced invest in two co-location campuses in India. The roll-out will commence with more than 3,800 people moving into a new Mumbai Campus in late August, while a Gurugram campus will be set up next year. According to the information received, Ogilvy India (and its group agencies) will shift its office to the new location on Monday, August 26.

     

    All co-locations will support the WPP community with world-class facilities. The campuses include conducive spaces for talent to work and engage in collaboration and will also provide clients with easier access to WPP’s network of agencies.

     

    Said Mark Read, CEO of WPP: “India represents a region with immense opportunities for WPP. We are committed to building further momentum for our businesses there, through our campus investments. Having modern, dynamic workplaces creates real impact for our people, and enables collaboration and ideas to thrive. We work with some of the most progressive clients and teams in India and we want to support their efforts in creating outstanding work.”

     

    WPP’s new Mumbai Campus will be named BAY99, which alludes to the city’s historical roots and is also the campus’ postal code reference. Situated within The Orb, a new complex next to the international airport in the Sahar area, the location offers various amenities, including convenient transport and social options. The Orb complex will also offer more than 40 dining and entertainment options within walking distance for staff to enjoy.

     

    In a first for WPP’s India offices, the co-location will bring together more than 16 companies under one roof, with a space of 380,000 square feet over a 10-year lease. On-site, staff will enjoy a host of modern facilities, ranging from a rooftop terrace, recreation lounge, library, cafeteria and more.

     

    Commenting on the new campus, WPP Country Manager for India, CVL Srinivas said: “India is one of the most exciting markets for WPP with great growth potential. By investing in co-location campuses in key cities, we are bringing to life our vision to lead the market as a creative transformation company and to build a strong, cohesive WPP community. We support some of the biggest brand names in India and more than ever, clients want to be connected to easy processes and solutions, as well as a complete suite of services. The new Campus means our teams will have increased access to each other’s expertise and this will go far in enabling our talent to do their very best work for clients.”

     

     

  • Investment by Bain Capital Private Equity values Kantar at $4.0bn; WPP leverage target to be met a year ahead of plan; £1.0bn shareholder return planned

    WPP sells 60 per cent stake in Kantar to Bain Capital

    By A Correspondent

     

    WPP has entered into an agreement to sell 60 per cent of Kantar, its global data, research, consulting and analytics business, to private equity major Bain Capital. The proposed transaction values the whole of Kantar at a headline enterprise value of $4.0bn.

     

    The WPP Board believes that the proposed transaction will allow Kantar to strengthen its industry-leading position through the combined expertise and resources of Bain Capital and WPP. It also crystallises significant value for WPP’s shareholders, while giving them continued exposure to an attractive business with the potential for further value realisation in the future.

     

    The transaction values 100 per cent of Kantar at $4bn. The equity value after expected completion adjustments is $3.7bn. After transaction costs, tax and WPP’s continuing investment of $0.4bn to own 40 per cent of the equity in Kantar, net cash proceeds to WPP are expected to be $3.1bn. The consideration is payable in cash. WPP may receive additional consideration over the next three years in respect of certain contingent liabilities, in the event that such liabilities are lower than estimated. Additionally, WPP may receive certain other payments during the life of its partnership with Bain Capital.

     

    Said Mark Read, Chief Executive Officer, WPP: “Kantar is a great business and we look forward to working with Bain Capital to unlock its full potential. As a strategic partner and shareholder in Kantar, WPP will continue to benefit from its future growth while our clients continue to benefit from its services and capabilities. I would like to thank Eric Salama, his team and everyone at Kantar for their tremendous contribution to WPP – a contribution that will continue as we develop the business together. This transaction creates value for WPP shareholders and further simplifies our company. With a much stronger balance sheet and a return of approximately 8 per cent of our current market value to shareholders planned, we are making good progress with our transformation.”

     

    Added Luca Bassi, a Managing Director at Bain Capital Private Equity: “Kantar is a market leader in many areas and we are excited to be partnering with its management team and WPP to build on this remarkable platform for growth. We see many opportunities for expansion and will invest in technology to expand the company’s capabilities and reinforce its global leading position.”

     

    Said Eric Salama, CEO, Kantar: “Our new ownership structure presents a great opportunity for Kantar, our employees and our clients. In Bain Capital we have a partner who shares our ambition, brings relevant expertise and – with WPP – can help us accelerate our growth and impact for clients. We are focused on delivering ‘human understanding at scale and speed’ and the ‘best of Kantar’ more consistently. We will do so by investing more in talent and by becoming a more technology-driven solutions provider.”

     

     

  • Andrew Scott will continue in his role as Chief Operating Officer of WPP

    Mark Read assumes charge as WPP CEO

     

     

    By A Correspondent

     

    Very proud to be given the chance to lead @WPP with our fantastic people and clients. Time to update my twitter profile!

    • Mark Read, hours after the announcement of his appointment to the corner office at WPP. On Twitter (@readmark).

     

     

    For some weeks now, the name of Mark Read as the new CEO of WPP has been doing the rounds. It was imperative for WPP to have someone who is familiar with the set-up and has considerable equity with its long-standing clients.

     

    Read has held multiple leadership positions across the company, including nine years as an Executive Director of WPP plc. For 12 years, as Head of Strategy and then CEO of WPP Digital, he was responsible for the company’s digital development, including the move into technology through the acquisition of 24/7 Real Media, the creation of digital network Possible and the launch of Stream, WPP’s celebrated “unconference”.

    In 2015, he was appointed Global CEO of Wunderman, where he transformed the network into one of the world’s leading customer-focused digital agencies. Wunderman, as we know, is among WPP’s largest businesses, with more than 10,000 people in 200 offices across 70 countries and clients including Microsoft, Dell, Shell, BT and Adidas.

    In April 2018 he was named joint Chief Operating Officer of WPP, with responsibility for clients, operating companies and people.

    Earlier in his career, Mark co-founded and developed internet start-up WebRewards. He also specialised in the media and marketing industries as a principal at consultancy Booz Allen & Hamilton, having started his career at the WPP parent company working on corporate development.

    Mark has an MBA from INSEAD and an Economics degree from Trinity College, Cambridge University, and was a Henry Fellow at Harvard University. He is the Chairman of the Natural History Museum Digital Council. Wired magazine ranked him as one of the Top 25 Digital Influencers in Europe in 2014 and he was named The Drum’s Digital Individual of the Year in 2015 and 2017. He lives in London with his wife and two children.

    According to the New York Times, Jon Williams, a former Grey CEO, told Reuters: “For any leader coming into any business the most important thing is to have respect. Because of Mark’s operational delivery and because he’s got a personal relationship with a lot of the business leaders, he’s got that respect. He can hit the ground running.”

    Around noon India time on September 3, WPP made official the appointment of Mark Read as Chief Executive Officer and his appointment to the Board of WPP as an Executive Director with immediate effect.

     

    Said Roberto Quarta, Chairman of WPP: “The Board carried out a rigorous selection process, assessing internal and external candidates. That process, alongside Mark’s wise and effective stewardship of the business in the last few months, left us with no doubt that he is the right leader for this company, and we are delighted to announce the Board’s unanimous decision to appoint him as Chief Executive Officer of WPP,” adding:  “Recognised for his leadership throughout the industry, he has an intimate understanding of the business, he enjoys very strong internal support, and he has earned the respect and endorsement of our clients with his constant focus on their needs. He has played a central role in many of WPP’s most successful investments and initiatives, and he has deep experience at board and operational level. Most recently, Mark led the transformation of Wunderman into one of the world’s top digital agencies, and he understands the importance of culture in creating successful organisations. In short, he is in every way a 21st -century CEO.  WPP is a world leader in communications services. The priority for the Board and the task ahead for Mark and the new management team is to build on this position of strength, while pursuing a clear vision for change and value creation.”

     

    Added Read: “WPP is a great company with exceptional people and strong relationships with clients who place a high value on our work. Few organisations have our global reach – 130,000 people delivering results for clients in 112 different countries. Fewer still have our powerful combination of creativity and expertise in technology and data. “Our industry is going through a period of structural change, not structural decline, and if we embrace that change we can look ahead to an exciting and successful future. Our mission now is to release the full potential that exists within the company for the benefit of our clients, to accelerate our transformation and simplify our offering, and to position WPP for stronger growth. To achieve that we need to foster a culture that attracts the best and brightest: inclusive, respectful, collaborative, diverse. What makes our company special is its people, and I am very proud to have been given the chance to build a new WPP with them.”

    Meanwhile, Quarta has resumed his role as Non-Executive Chairman on the appointment of Mark Read as Chief Executive Officer. Andrew Scott will continue in his role as Chief Operating Officer of WPP on a permanent basis as a key member of the senior management team.

     

    Read will be paid in accordance with the Compensation Policy approved by share owners on June 7, 2017, as set out in the 2016 Annual Report.

    • Annual Salary of £975,000 (that’s Rs 8,93,03,662.50… Rs 8.93 crore)
    • Annual Bonus of up to 250% of salary with mandatory deferral of at least 40% of bonus into

    shares deferred for a two-year period.

    • LTIP award of 350% of salary. Performance will be measured over a five-year period using

    measures in line with the WPP Compensation Policy.

    • A cash allowance of 20% of salary, less employers’ national insurance, in lieu of pension.
    • A benefits allowance of £35,000 per annum to cover health, risk and other benefits.

    His contract of employment contains restrictive covenants including an industry non-compete, a non-deal with clients and a non-poach and non-employ of key WPP individuals.