To meet Wall Street's expectations, these Holding Companies must grow sales and widen margins, whatever the cost. Other professional goals take a back seat in their efforts to avoid being broken up.
Brand growth is a long term affair. CMO lifespan & client retention are both short term affairs. This is one of the reasons the focus has shifted, decades ago if you ask me. Neither CMO's or agencies care about building long term market success. I mean, not really, in public they will sing the correct song, but in practice, well, we can all see it with our own eyes. Fragmentation of media means fragmentation of message, parallel stories, nothing of meaning with any chance of becoming pop-culture. Ads have ceased to be watercooler subjects a long, long time ago.
Neither deems it can succeed on its own in the future environment. They see a strategy that lets themselves succeed (temporarily) by taking out $750 million in costs.
There’s no strategy to fix pricing or begin to drive brand growth for customers. So it’s a self-serving smokescreen that will enrich the C-Suite ($49 million for Philippe Krakowsky). But 10,000-15,000 employees will lose their jobs, further weakening their capabilities.
Brand growth is a long term affair. CMO lifespan & client retention are both short term affairs. This is one of the reasons the focus has shifted, decades ago if you ask me. Neither CMO's or agencies care about building long term market success. I mean, not really, in public they will sing the correct song, but in practice, well, we can all see it with our own eyes. Fragmentation of media means fragmentation of message, parallel stories, nothing of meaning with any chance of becoming pop-culture. Ads have ceased to be watercooler subjects a long, long time ago.
Ok, where does the Omnicom-IPG merger fit? IPG have obviously been prepared to give it up.
Neither deems it can succeed on its own in the future environment. They see a strategy that lets themselves succeed (temporarily) by taking out $750 million in costs.
There’s no strategy to fix pricing or begin to drive brand growth for customers. So it’s a self-serving smokescreen that will enrich the C-Suite ($49 million for Philippe Krakowsky). But 10,000-15,000 employees will lose their jobs, further weakening their capabilities.