Video is exclusive to members, sign up now to enjoy this and many other features.

Creative Relationships

Founder of WPP and Founder, Executive Chairman S4 Capital

IP Interview
Published on December 27, 2020
S4 Capital

Why is this interview interesting?

  • Why the legacy creative relationships of agencies and large advertisers is at risk
Executive Bio

Sir Martin Sorrell

Founder of WPP and Founder, Executive Chairman S4 Capital

Interview Transcript

I’m curious as to how you look at the creative agency relationship with the clients. Historically, we’ve seen companies like Oglivy, Saatchi’s, literally have creative relationships for over 50 years or even 100 years, sometimes. How are these relationships changing, given the disruption?

They are being turned upside down. Ford, which was the anchor client at WPP, had brought in other agencies, like Wieden and BBDO. Another ex-client of WPP had been with them for years and years. It hasn’t been publicly announced but they have moved to a smaller agency. It happens all the time. I think clients should be focusing on a number of things. They should be focusing on agility because that’s the attribute that everybody needs, not just in the Covid world, but generally; the VUCA analysis, volatility and uncertainty. Secondly, they should be focused on first-party data. The pressure on the platforms, whether it be Google, Facebook or Alibaba in China, means that first-party data is going to become even more important, so you have to focus on that.

The last thing is that you have to take back control. The nature of the environment is such that you cannot operate at arm’s length. You can have an outsourced model, to an agency, as long as they are responsive and agile; faster, better, cheaper, in our terms. You can have an embedded model, where we embed people in the client. Then you can have the insourced model, which we do which is subject of a Harvard Business School case study, the insourcing media case; that has morphed into T-Mobile. Bayer, another one of our clients, has been selected as in-housing client of the year. Traditional agencies have been unwilling to do this, historically, because it does them out of their business. We’re agnostic about that. We will do things that are in the interests of the client.

If we think in-housing makes sense and the client agrees, there is after-sales service in the sense of keeping them up to date with technology, because it’s often difficult for clients to keep up with technological changes and we see in more verticals so we get a better understanding. And then people; there tends to be more churn of people because, again, good people like to work in lots of verticals. So we keep them in touch and we’re hands on keyboards, if they need them, in that process of change.

The models are very varied and we can offer all three. We can offer outsourced, embedded and insourced.

Sign up to test our content quality with a free sample of 50+ interviews

Copyright Notice

This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.

IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.

In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities.

© 2024 IP 1 Ltd. All rights reserved.