WHAT IS THE NEXT BIG THING? What is the future of print? Is virtual reality the next big thing? Sir Martin Sorrell, CEO of WPP, the world’s largest advertising and marketing services group, shares his vision of the future Six months after the EU Referendum, how has the result
Does ‘traditional’ print advertising continue to have a role in
affected WPP and the wider market?
modern marketing?
Due to the weakness of the pound, we’ve experienced a short-
The answer is ‘yes’, though of course print advertising revenues
term currency boost in the second-half of 2016. But softening
have come under sustained pressure as the so-called ‘tech’ giants
growth in the UK in the third quarter perhaps hinted at the first
(who are in fact media owners themselves) take an ever larger
signs of Brexit anxiety among clients.
share of global ad spend. Digital advertising is expected to account
Brexit adds to the uncertainty felt by business in general, and
for 99 per cent of net global advertising growth in 2016.
provides yet another excuse to postpone or cancel investment
What print offers is often greater, higher-quality engagement
decisions. In our low-growth, low-inflation, low-pricing power
than digital media. There is plenty of research that suggests
world, companies were already very focused on costs and
advertising in newspapers and magazines is more effective than
reluctant to take risks, even before the referendum.
it is given credit for.
In terms of our strategy, we have renewed our focus on
The ‘fake news’ and measurement issues affecting the big
Western Continental Europe, not least France, where, since the
social media companies also highlight the value of traditional
referendum, we have acquired a leading French data business,
media, where the metrics are perhaps more established and
invested in the company behind Le Monde and VICE France, and
reliable, and editors still make the effort to check the factual
appointed a Country Manager for the first time.
accuracy of what they publish.
Like Germany, Spain and Italy, France is a critically important market for us, with many great French companies as clients. France
What is the one trend that you recommend business leaders
is particularly significant because it has a disproportionately high
spend time looking at in marketing this year?
share of the world’s top global and multinational companies.
There are three things brands should look at closely: two specific
In Western Continental Europe, we have revenues of more
points, and one general, more philosophical point.
than $4bn and employ 27,000 people. We have to protect and
The first is that there needs to be more attention on the
build our position, so, post-Brexit, WPP will be more European
transparency and reliability of tech or social media companies’
than ever.
approach to measurement, and the resulting questions over the effectiveness of ad spend with them. The player and the referee
What can firms do in order to boost their return on marketing over the coming year?
can’t be the same person, as is the case at the moment. The second is virtual reality (VR), which is becoming more
Every year, WPP’s Millward Brown produces its global BrandZ
accessible for consumers and is bound to feature heavily at CES
ranking of the world’s most valuable brands. If you had invested
(the Consumer Electronics Show) in Las Vegas in January. It is
in the world’s top 10 brands over the past 10 years as a single
estimated that the market for VR and augmented reality (AR) will be
stock portfolio, it would have outperformed the S&P 500 index
worth $35bn by 2025, offering great opportunities for marketers
by almost 75 per cent and the MSCI World index by more than
– from enhancing campaigns to improving customer experiences.
400 per cent.
The third trend that should be looked at closely (and reversed)
In other words, there is a direct correlation between
is the increasingly risk-averse, short-term nature of decision-
investment in brands and long-term success, in the form of
making in boardrooms, where cost-cutting rather than investment
top-line growth and shareholder return. Prioritising long-term,
has become the norm. Brands cannot deliver enduring success
brand-building communications is the best thing a business can
without sufficient investment in innovation, R&D and brand communications. I Interview by JH
do in 2017, and indeed any year. 28 - info - january / february 2017