A quick reality check on WPP

Lots of news swirling about WPP and its peer group this week. I have history and a few thoughts to share.

WPP’s CEO is on his way out, with no successor in the wings. And after losing its $1.7B Mars media business to Publicis, WPP is accusing Publicis of unethical media practices.

It’s all happening in the shadow of the impending Omnicom/Interpublic merger, which will officially define WPP as the second-class holding company it’s always been.

WPP has certainly had stretches as “the biggest” ad holding company, but it’s rarely been declared “the best.”

I was there, briefly, and it wasn’t pretty

I’m often asked what my best and worst experiences have been in advertising. The “best” answer is impossible, since I had so many wonderful years across multiple big agencies and my own shops in the business.

The “worst” is easy: The two years I experienced in WPP-land while at JWT.

Here’s why WPP will forever strive, and consistently fail, to top its peers:

• WPP can’t escape Martin Sorrell’s DNA. Sorrell was always “money first, people last, creative—whatever.” Note that Omnicom and Publicis have always put people and creative first; and go figure, their profits have consistently topped WPP’s. I moved into the Omnicom world after WPP, and the contrast was indeed stark. I also had many personal dealings with Sorrell, and I’ll let David Ogilvy’s description stand: “An odious little jerk.”

• Creative and strategic founders have set the most successful trajectories: Legendary creatives built Omnicom (Reinhard/Rosenshine/Bernbach) and Publicis (Bleustein-Blanchet). Marion Harper—a strategy and psychology wunderkind—founded Interpublic, the first advertising holding company. Sorrell is a financial engineer, and in my personal experience, had difficulty peeking over his spreadsheets on tippy-toes.

• Next-gen leaders then built on creative foundations: John Wren at Omnicom (and soon the Omnicom/Interpublic combine), and Maurice Lévy at Publicis took their companies forward the way Tim Cook has lifted Apple after Steve Jobs: They protected and built on their companies’ creative legacies while adding next-level operational brilliance. They have also been generally admired and liked.

Sorrell, not so much. He was suddenly forced out of his company after investigations of “personal misconduct,” and his second act, S4Capital, is hardly making a run at glory.

Key holding company 2024 stats:

• Omnicom+Interpublic: $20B revenue, 18% net margin

• Publicis: $15B revenue, 20% net margin

• WPP: $14B revenue, 17% margin

• S4Capital: <$1B, 11% net margin but likely losing money

  

My final Sorrell encounter

The day I announced my departure to DDB/Omnicom, Sorrell insisted I head across town to speak to him, but he repeatedly set and cancelled our meeting for weeks, often as I was on my way to his offices or already there.

I was surprised to be summoned over on my last day. After waiting over an hour in a conference room, he strolled in, barked at me for 45 minutes, closing with, “you’ll never accomplish what you think you will over there,” and walked out. A predictable and perfect exit interview.

I’d been speaking with the classy Keith Reinhard on and off for seven years about joining DDB, and I smiled my way back across town knowing I’d soon be landing on sunnier shores.

Maurice Lévy, another class act

During my time at FCB/NY, FCB’s long-standing driver Donald Gavigan shuttled us back and forth to clients, airports and homes, and was full of hilarious tales, many of which are unprintable.

This wholesome one stuck with me: When Publicis and FCB’s parent in Chicago, True North, were considering a merger, Donald picked Maurice Lévy up early one morning at the airport, with plans to take him back to LaGuardia to fly on to Chicago that evening.

As they headed into Manhattan that morning, Lévy bemoaned his lack of understanding of Americans, having never spent much time outside of airports, hotels and meeting rooms.

As Donald was regaling him with stories about “the real America,” Lévy said, “Forget LaGuardia later. Let’s drive to Chicago.”

That turned into a three-day zig-zagging trek, and Donald was stunned at what a down to earth patrician the French ad giant actually was.

I have faith there are more Reinhards, Wrens and Lévys out there, coming up in the next generation of AdLand leadership, ready to lift the business even further with class. Let’s not lose faith, folks.

Notes & Sources

https://adage.com/agencies/aa-wpp-publicis-epsilon-ssp-spat/

https://adage.com/agencies/aa-wpp-publicis-groupe-feud-over-ad-inventory/

https://adage.com/agencies/aa-wpp-mark-read-exit/

https://www.adweek.com/brand-marketing/publicis-takes-mars-17-billion-media-account-from-wpp/

https://www.adweek.com/agencies/shareholders-approve-omnicoms-acquisition-of-ipg/

https://www.nytimes.com/2018/04/14/business/media/wpp-martin-sorrell-resignation.html