2018 Q2 R3View

R3 is a leader in global, regional and local consulting on improving the effectiveness and efficiency of marketers and their agencies.

We work with nine of the world’s top twenty marketers including Coca-Cola, Unilever, AB InBev, MasterCard, Mercedes Benz, Johnson & Johnson, Samsung and Kimberly Clark.

NEW YORK 57 W 57th Street 4th floor New York, NY T +1 646 416 8088 Greg Paull - Principal greg@rthree.com Melissa Lea – Managing Director melissa@rthree.com Erin Singleton - Marketing Manager erin@rthree.com Kayleigh Ma - Consultant kayleigh@rthree.com

Q2 2018 r3view

Welcome to the Q2 2018 R3VIEW, our regular quarterly report on the marketing communications industry. In this issue, we look at the biggest stories in the industry, our analysis of the major trends at Cannes, CMOs and Agency Execs on the move, along with the H1 M&A and New Business results.

The Biggest Stories How Are Global Brands Approaching Digital Transformation?

How are the CMOs of 18 leading global brands tackling digital transformation?

The most recent publication from R3, Global CMO – which features interviews from the Chief Marketers of Coca-Cola, Samsung, GE, Colgate-Palmolive, Mastercard, Citi and more – aims to answer that question by exploring topics ranging from big data and e-commerce to agency relationships.

Global CMO, released in early May, provides a window into how some of the world’s biggest brands are integrating digital into their overall marketing (and business) strategies. It shows that while there are many different challenges depending on sector and market, there are some common threads that run throughout everyone’s digital transformation journeys. In a recent interview with Forbes, co-author Greg Paull talked about these challenges, and what the future looks like for the C-Suite Marketing Executive.

To learn more about the Global CMO book, visit www.globalcmobook.com.

LONDON 3 Waterhouse Square, 138 Holborn, EC1N 2SW T +44 20 7998 9588 Nick Elliott - Managing Director nick@rthree.com SHANGHAI Room 4203, United Plaza, 1468 NanJing Road West T +86 21 6212 2310 Carrie Zheng - Senior Consultant carrie@rthree.com Trace Qu - Marketing Executive trace@rthree.com BEIJING A 1801, Chaowai SOHO, No.6 B Chaowai Street, Chaoyang District, Beijing T +86 10 5900 4733 Sabrina Lee - Managing Director sabrina@rthree.com Clement Ma - Senior Consultant clement@rthree.com SINGAPORE 69A Tras Street, Singapore 079008 T +65 6221 1245 ShuFen Goh - Principal shufen@rthree.com Seema Punwani - Principal Consultant seema@rthree.com SAO PAOLO Rua Jerônimo da Veiga, 428 – conjunto 21 São Paulo, Brazil SOUTH AFRICA Rykie Brink – Senior Consultant rykie@rthree.com  facebook.com/r3worldwide  linkedin.com/company/r3  twitter.com/R3WW  weibo.com/r3china www.rthree.com www.r3integration40.com www.r3social40.com www.r3adtech40.com www.r3global40.com

Q2 2018 R3view

Unconventional Buyers and MarTech Firms Lead Marketing M&A The H1 2018 Global M&A League table shows that consultancies have been overtaken as the leaders when it comes to acquisitions in the marketing M&A space.

It’s easy to conclude that the big holding companies, struggling for growth, have spent their money and are now being outmatched in the tech space - particularly by the cash-rich consultancies - and even brands moving into the space.

The two consultancies leading the pack are Accenture and Capgemini.

Accenture recently acquired German creative tech company Mackevision, while Capgemini purchased US-based digital customer engagement agency LiquidHub. However, the biggest story of this quarter was AT&T, who acquired AppNexus for $1.6 billion. Dentsu is still the busiest agency acquirer so far this year, with Omnicom doing two medium-sized deals. WPP, long the most active M&A buyer, had eight deals up to and including June but they’re too small to take over the lead from the unconventional buyers.

For more on M&A, click here.

The Future of the Chief Creative Officer In the past year, the industry has been buzzing with speculation on the future of the CMO. Will they be ousted in favor of new C-Suite executives, or will they be eliminated altogether? It seems that it’s not just the marketing side that is rethinking how they structure their leadership, as JWT’s recent decision to eliminate the position of Chief Creative Officer has called into question the future of the role in the agency landscape as a whole. JWT is seeking to remake the entire agency model by implementing what they’re dubbing the “Inspiration Council,” which will be supported by a “Futures Council,” in lieu of the CCO. JWT’s CEO, Tamara Ingram, said, “We are reimagining the future of the agency. This was a structural decision that will allow us to be more agile, leverage our collective global bench strength and encourage the burgeoning diverse ‘maker culture’ growing within J. Walter Thompson.”

For more on this story, click here.

Why Agencies Should Embrace Zero-Based Budgeting Zero-based budgeting (ZBB) is one of the most radical approaches to cost-reduction, yet it has become the go-to model for big-name companies like Coca-Cola, Kellogg’s, The Kraft Heinz Co., Mondelez International and Campbell Soup Co. ZZB has largely received negative reactions from agencies, who argue that funds allocated to external partners will be cut, forcing them to do more work for less money. However, agencies can (and should) embrace ZBB as a way for them to become more effective partners for their clients. A successful zero-based budgeting approach comes down to measurement. Investing in a measurement framework to track what’s working and what’s not will benefit both the marketers that are turning toward zero-based budgeting and the agencies they partner with. For organizations looking to implement zero-based budgeting, it is important to bring agency partners into the process and make spend levels and efficiency two of the key components of the negotiation process, rather than an afterthought.

For R3’s latest white paper on Zero-Based Budgeting, click here.

www.rthree.com

Global CMO Contributors Making Headlines around the World YoungHee Lee – CMO, Samsung Electronics Younghee Lee, the CMO of Samsung Electronics, recently appeared at Cannes to talk about Samsung’s three-year long campaign to humanize the brand, reinforcing the message that her brand’s products will drive creativity and be enablers of human change. When talking about their comparison to Apple, she said, “We just want to give room and flexibility and change to consumers. So we’re coming from a very different start. We always listen to consumers and want to deliver very meaningful innovation instead of curated, dictated innovation. That’s the different starting point or philosophy.” Samsung’s success at Cannes this year was largely built around brand purpose, to which Lee commented, “I want brands to take a stand for all humankind and say something about how we can all improve our lives,” Lee insisted. “At the end of the day we can deliver a bigger, more human benefit.”

The full story can be found here.

Linda Boff – CMO, GE Linda Boff, CMO of General Electric, was recently named the Chair of the Board of Directors for the Ad Council, after previously serving as Vice Chair. In the position, Boff will work with the Ad Council’s leadership to “manage and advise on business affairs and policy initiatives,” according to a release. She was also included on Business Insider’s list of the Top 25 Most Innovative CMOs in the World for driving digital initiatives & integrating a learning culture at GE. According to Business Insider, Her scope at GE has grown in recent months to include integrating learning and culture with communications and marketing in a way that further drives brand and reputation.”

For more on Linda Boff’s Ad Council Appointment, click here.

Raja Rajamannar – CMO, Mastercard Raja Rajamannar, Chief Marketing & Communications Officer at Mastercard, was also recently included on Business Insider’s list of the Top 25 Most Innovative CMOs in the World for his role in driving tech initiatives at the finance giant. According to the report, “From exploring the future of virtual reality with an app that lets consumers buy Swarovski-designed home décor to Facebook Messenger chat bots, Rajamannar has tried to keep Mastercard up to speed on technology. He’s also evolved Mastercard’s ongoing Priceless campaign to focus on social change and telling stories about people’s passions and purposes.” Rajamannar was also a big presence at Cannes this year, where he talked about influencers and brand purpose.

3

Q2 2018 R3view

Biggest Stories from Cannes A.I. Makes Waves at Cannes This Year This year at Cannes, AI was undoubtedly one of the festival’s hottest topics. The content was largely techheavy, covering everything from blockchain’s marketing applications to AR and VR, but AI was cited as having the ability to do everything from enhancing storytelling to fueling creativity. AI’s implications are far-reaching; not only for consumers, but also for the way that clients and agencies interact. On one panel, a traditional creative brief was compared to an AI-generated document. The key findings from the exercise revealed that the AI-generated brief’s ability to increase the number and diversity of ideas created by 57% when compared with the traditional format.

For more on this story, click here.

Trust, Transparency, and Fake Influencers

15,648,548

Trust & transparency have been at the forefront of the advertising industry for several years. Whether the topic is agency rebates or programmatic fraud, it seems that the industry is always battling non-transparent practices. This year at Cannes, the focus was on the topic of fake influencers. Keith Weed, CMO of Unilever, announced the company would no longer work with influencers who buy followers, and that its brands will actively look to sever relationships with any influencers with fake followers, bots or any other fraudulent practices. Influencer marketing started gaining popularity several years ago in large part because it can feel more real than traditional advertising. But, according to an article in Digiday, authenticity can be faked. “Anti-fraud company Sway Ops found that a single day’s worth of posts tagged #sponsored or #ad on Instagram contained over 50 percent fake engagements. Out of 118,007 comments studied by Sway Ops, only 20,942 were not made by bot followers.”

For more on this story, click here.

Finding the Balance between Creativity & Data The ideal mix of data vs. creativity within a marketing function seems like an equation that is impossible to solve. CMOs agree that both elements are essential in the age of digital transformation, but how can a marketing leader decide what percentage of talent and resources to invest in one versus the other?

According to a study released by McKinsey at Cannes, companies that blend data and creativity grow their revenues by 10% per year, which is twice the average rate of S&P 500 firms. Most brands are aiming to deliver more personalized content and targeted advertising by investing more in big data. On one panel, Marc Pritchard of P&G described judging ad campaigns against whether they gave him the “tingle factor,” in an ecosystem where ads are analyzed and measured before they go live.

For more, click here.

See All 30 Grand Prix Winners from Cannes 2018 This year’s Grand Prix winners included innovative campaigns that leveraged data or new technology - like The Times / News U.K. and Ireland’s “JFK Unsilenced” (Creative Data) and Microsoft’s “Xbox Design Lab Originals: The Fanchise Model” (Creative E-Commerce), as well as several that promoted environmental awareness and social responsibilities – including LADbible and Plastic Oceans Foundation’s “Trash Isles” (Design) and the Palau Legacy Project’s “Palau Pledge” (Direct).

See the full list of winners here.

www.rthree.com

90 days of M&A An explosion of M&A activity from unconventional buyers has led to an 88% increase in global M&A activity when compared to 1H of 2017. While the total number of deals remained steady YoY (198 in 1H 2017 vs. 199 in 1H 2018), the total deal value increased this year from $4,972m to $9,326m. This increase has also been driven by a sharp uptick of activity from both unconventional buyers and martech companies, the latter of which saw 39 deals completed in first half of this year and tremendous growth in deal value. In our June M&A League table, AT&T jumped into the number one spot off the back of their $1.6 billion deal to acquire AppNexus. Accenture fell into the second place spot for the first time this year, and another newcomer – Abry Partners – came in third.

Global / Q2 2018

199

Total DEAL COUNT Rank This Rank Last month Month

2018 HOLDING COMPANY M&A LEAGUE

9,326

Total Deal Value ($mn)

Holding Group

Recent Acquisitions

1

-

AT&T

AppNexus

2

1

Accenture

3

-

4

Total Sales Number of Value (US$m) deals

1,600

1

Mackevision, Meredith Xcelerated Marketing (MXM), HO Communication

445

3

Abry Partners

Screenvision Media

380

1

2

CapGemini

LiquidHub, Adaptive Lab

322

2

5

3

Ocelot Partners

Ocean Outdoor, Forrest Media

287

2

6

6

Dentsu

HelloWorld, Data Artist, Character, Red8 Group, Cheddar, Arraiy, M8, Red Communication, White Label MKT, The Big Now, Klip Desk

231

11

7

4

Amdocs

Vubiquity

224

1

8

5

Evergage

MyBuys

224

1

9

7

Endeavor

160over90, Influential

208

2

10

8

Omnicom

Snow Companies, Elsevier (Japan)

204

2

11

9

Terminus

BrightFunnel

168

1

12

10

Cars.com

Dealer Inspire & Launch Digital Marketing

165

1

13

13

WPP

BAR (Bomtempo, Anahory & Ralha), Mash Strategy Studio, The Glitch, Brad, Wunderman (SEA & Taiwan), Map Project Office, Universal Design Studio, Dooh.com

157

8

14

-

Suzhou Jinfu New Material

Gong He Sheng Shi ("共和盛世")

156

1

15

11

Meltwater

DataSift, Sysomos

154

2

5

Q2 2018 R3view

M&A Deal comparison 1H 2018 VS 1H 2017 9,326

4,972

198

Total Deal Value ($m)

199

Total Deal Count 1H 2017

1H 2018

Top 10 unconventional buyers

By Deal Value ($m) in 1H 2018

165 cars.com 156 Suzhou Jinfu New Material 112 WeWork 1,600 AT&T

76 Deluxe 76 Oracle 75 Infosys 74 Nantong Metalforming Equipment Co. 56 Pandora 56 Bonnier

www.rthree.com

new business league After the first half the year, Publicis leads the way on the Creative New Business League table off the back of wins including Nestle US and P&O Ferries EMEA. Ogilvy and Havas Worldwide maintained their second and third place spots, respectively. The biggest move on the creative table came from GDS&M, who made their first appearance in 17th place after winning the Pizza Hut US creative business. On the media table, Initiative jumped up from seventh place to take the top spot after their Revlon global win. They are tied for first on the table with OMD, and long-time first place holder - PHD - fell into third place. Finally, Essence made their first appearance of the year in the ninth place spot off the back of their Tigerair Australia and T-Mobile US wins.

2018 CREATIVE AGENCIES NEW BUSINESS LEAGUE Global /Q2 2018

Rank This month

Rank Last Month

AGENCY

1

1

Saatchi & Saatchi

2

3

R/GA

3

2

Grey Group

4

4

Havas Worldwide

5

5

GS&P

6

6

MullenLowe Group

7

-

GSD&M

8

7

The Martin Agency

9

8

Y&R

10

45

11

Recent WINS

ESTIMATED YTDWIN REVENUE (USD $ m)

Recent Losses

ESTIMATED YTD Number of WIN REVENUE wins (USD $ m)

P&G Fabric Care N. America

48.0

48.0

2

Ally Financial US Digital, Harley-Davidson US, Berkshire Hathaway US

41.6

41.6

34

Bose Global, P&G Fabric Care N. America, Bulldog Gin Global

35.7

35.7

4

ADP US, Rackspace US, JBL Global Project, Mike'S Harder Lemonade US

21.3

21.3

9

BMW US, Ram Trucks US Project

21.0

21.0

2

Edgewell Global, Cabify Global, Bahlsen Global

19.6

19.6

3

Pizza Hut US

24.3

19.5

3

Wizards of the Coast US, Kohl’s US, Sling TV US, Lidl US Project, The Magic Brand US

17.5

17.5

5

Office Depot Global, Optimum cable US, Miss America US

17.0

17.0

3

Deutsch

Color Genomics US, H&R Block US

14.5

14.5

3

9

EP & Co

Lowe's US, John Deere US

14.3

14.3

2

12=

10

Wieden & Kennedy

Bud Light (Social) US, Converse Global

13.0

13.0

3

12=

17

MXM

Carlsberg Beer US Project, Reynolds US Project, Allergan Social US, Cooper Tire US Digital

13.0

13.0

10

14

24

McCann WorldGroup

Nestle US, San Francisco Giants US, Vichy Cosmetics Global, Dorchester Collection Global

20.3

ALDI US

12.7

16

15

13

TBWA

Fox Networks Group US, Mayo Clinic US, Swinton Group US

13.5

Vichy Cosmetics Global

12.5

4

16

19

Anomaly

Weight Watchers International Global, Ally Financial US

14.0

Converse Global

12.0

3

17

25

FCB

Kimberly-Clark Family Care US, Hotwire US, Strongbridge BioPharma US

10.4

10.4

8

18=

11

Conill

Lowe's US

10.0

10.0

1

18=

12

Via Agency

Lowe's US

10.0

10.0

1

20

14

Eleven

Shipt US, Carbon US, Supercell Gaming US Loyalty marketing, Ladder Life Insurance US

9.5

9.5

7

354.3

270

John Deere

Target US

7

Q2 2018 R3view

2018 MEDIA AGENCIES NEW BUSINESS LEAGUE Global / Q2 2018

Recent Losses

ESTIMATED overall YTD REVENUE (USD $ m)

Number of Wins

38.8

Burlington Stores US

35.8

7

P&G Fabric Care N.America, Amgen US

43.0

P&G Hair Care N. America

28.0

2

Spark Foundry

Lenovo Global, Macy's US, Marriott Global, Mondelez N. America, Telemundo US

45.9

KFC US

24.4

5

-

Essence

T-Mobile US Digital Media

20.0

20.0

1

5

5

Wieden & Kennedy

KFC US, League of Legends US

13.8

13.8

2

6

8

Digitas

Macy's US, Dunkin' Donuts US

15.0

Hilton Global

12.0

2

7

10

Horizon Media

Burlington Stores US, TriHonda dealers US, UnitedHealth Group US, SharkNinja US

17.0

Optimum cable US

10.9

4

8=

6

MullenLowe MediaHub

New Balance US, Wyndham hotels N. America, Pearson Education US

10.5

10.5

5

8=

7

Starcom

Red Bull US

10.5

10.5

2

10

9

PHD

HSBC Global, Harry's US, Newell US, Rover US, BRP US, Square US

11.7

Clothing Brand US

9.9

9

11

4

MediaCom

adidas Global Buying, Ally Financial US, RentA-Center US, Office Depot Global, Bose Global

26.2

Revlon Global

8.6

8

12

11

Havas Media

Sono Bello US, Bob´s Furniture US, Yuengling US, ADP US, Orbitz US

5.7

5.7

6

13=

12

WPP(Team Energy)

BP Global

5.0

5.0

1

13=

-

Blue 449

Dunkin' Donuts US

5.0

5.0

1

15

13

OMD

Beiersdorf US, San Diego Gas & Electric US, Lilly NGCE US Project

4.8

4.8

3

16

14

360i

Advance Auto Parts US, Plated US

4.0

4.0

3

17=

15

VaynerMedia

Mondelez N. America

2.5

2.5

1

17=

16

The7stars

ABF grocery products US

2.5

2.5

1

17=

17

Virtueworldwide

Musical.ly US

2.5

2.5

1

20

19

Generator Media + Analytics

TheStreet.com US, De’Longhi Group US, Mutti USA Inc US

1.3

1.3

3

176.0

100

Recent wins

Estimated YTD win revenue (Usd $ m)

Initiative

Revlon Global, Amazon Studios US, Liberty Mutual US, Entertainment Studios US, CB2 US

1

Hearts & Science

3

3

4

Rank This month

Rank Last Month

1

2

2

www.rthree.com

Agency

Rostelecom Russia

holding company new business league In the last month of H1 of this year, WPP moved into first place on the Holding Company New Business League Table. This is due in large part to the consistently strong performances of creative agencies Ogilvy and JWT, as well as digital agency Essences’ two big wins in the last month of H1. Publicis fell into second place, and Interpublic held strong in the third place position. Last quarter’s fourth place holding company, Havas, dropped into 6th place in Q2.

They are followed only by MDC, who has only seen 15 new business wins YTD, causing their estimated overall YTD revenue to be down 8.7% so far this year.

2018 NEW BUSINESS LEAGUE HOLDING GROUP RANKING Global / Q2 2018 ESTIMATED CREATIVE YTD REVENUE

ESTIMATED MEDIA YTD REVENUE (USD $m)

ESTIMATED OVERALL YTD REVENUE (USD $m)

AS % OF 2016 REVENUE

Number of Wins

WPP

273.3

65.6

339.0

1.7%

816

1

Publicis Groupe

270.4

58.9

329.3

2.7%

433

3

3

Interpublic

168.6

80.6

249.2

3.1%

371

4

6

Omnicom

7.4

135.7

143.2

0.9%

619

5

5

Dentsu

68.9

55.4

124.3

1.5%

635

6

4

Havas

81.8

23.2

105.0

3.7%

178

7

7

MDC

-6.7

-2.0

-8.7

-0.6%

15

1,281

1.8%

3,067

RANK THIS QUARTER

RANK LAST QUARTER

1

2

2

HOLDING GROUP

9

Q2 2018 R3view

CMOs on the Move Gina Qiao - Lenovo, Global CMO Veteran Lenovo executive, Gina Qiao, has been named the company’s new global CMO after the retirement of David Roman. Qiao has worked for Lenovo since 2002, most recently as Beijing-based Senior VP of the company’s mobile business group. She also has been the SVP of Human Resources, SVP of Strategy and Planning, and VP of HR. Lenovo’s APAC CMO, Nick Reynolds, is also taking on a global role in the wake of Roman’s departure as the global head of marketing for digital, web and social media.

Bozoma Saint John - Endeavor, CMO Uber’s Chief Brand Officer, Bozoma Saint John, has left the company to join Endeavor as their CMO. In her new role, Saint John will oversee marketing for all of the holding companies of Endeavor, including WME and IMG. Starting her advertising career on the agency side at SpikeDDB, she moved over the client side as a Senior Marketing Manager for PepsiCo in 2005. Her other roles include a stint at Ashley Stewart as the VP of Mobile & E-commerce, as well as the Head of Global Consumer Marketing at Apple.

Scott Thaler - Mattress Firm, CMO Scott Thaler recently joined Mattress Firm as the Chief Marketing Officer. He joins Mattress Firm after a 14-year career at Zimmerman Advertising, where he served in multiple leadership roles within the agency, including Chief Interaction Officer, Chief Digital Officer and Chief Client Officer. In his new role, Thaler will lead the strategy and implementation for advancing Mattress Firm’s consumer insights and engagement, brand marketing, and retail marketing activations. He will also be responsible for overseeing the integration of all Mattress Firm communication initiatives and driving their omni-channel marketing approach.

Giuseppina Buonfantino - Kimberly Clark, CMO Kimberly Clark recently promoted Giuseppina Buonfantino to the role of CMO. She most recently served as President of Kimberly-Clark’s baby and child care business in North America, where she led the innovation, manufacturing and marketing of trusted brands including Huggies, Pull-Ups and GoodNites. She joined the CPG giant in 2011 as Vice President of global adult and feminine care brands, where she helped shaped the global growth strategy for the brands in this category. Prior to joining to KCC, she held several leadership positions across several key markets at Johnson & Johnson, where she worked for 18 years.

Sophie Bambuck - Converse, CMO Nike brand Converse has recently named Sophie Bambuck to the role of CMO in the wake of Julien Cahn’s departure to join Supreme. Bambuck has been with Nike since 2008, and has held several roles over the last decade, including Brand Manager for Nike Sportsware, Global Marketing Manager - Energy, Brand Director – Running, and Senior Marketing Director for Nike Sportsware Western Europe. This move comes amidst several senior departures from Nike. Recently, the company’s VP of Footwear, Greg Thompson, left the company, along with VP of Global Brand Digital Marketing Innovation, Daniel Tawiah.

www.rthree.com

Kevin Warren - UPS, CMO UPS recently appointed Kevin Warren to the position of Chief Marketing Officer. Warren will report to UPS Chairman and CEO David Abney. In this role, Warren will be responsible for all U.S. and international marketing, including the company’s pricing, customer loyalty, industry segments product development, customer communications and PR and other functions.

Prior to joining UPS, he worked for Xerox for over 30 years, where he most recently served as EVP and Chief Commercial Officer for Xerox Corporation. Prior to that, he served as President of the Commercial Business Group for Xerox’s services business, President of Global Growth Opportunities, as well as several other roles.

Vinoo Vijay - H&R Block, CMO H&R Block hired Vinoo Vijay as its new Chief Marketing Officer, filling a position that has been vacant since January, when the company parted ways with Kathy Collins. In his new role, he will be responsible for all marketing functions, including brand strategy, performance marketing, online experience, product management and client experience, creative and advertising, and corporate communications. He brings 24 years of marketing experience, with previous roles for brands such as FedEx, Bank of America, Ally Financial Services and TD Bank. He spent the past year as Head of Fintech for TD Bank in Philadelphia, after spending four years as its Chief Marketing Officer.

Karina Ong - Kraft Heinz, CMO – APAC Kraft Heinz has appointed Karina Ong as its Chief Marketing Officer for the Asia Pacific region. Based in Singapore, she will lead the growth agenda for the brands and spearhead the long-term innovation pipeline for Kraft Heinz portfolio in the region. She brings nearly to 18 years of consumer marketing experience at the regional and global level to the role.

Prior to joining Kraft Heinz, she was with Unilever where she held several roles, the latest as global brand development director for Pond’s. Prior to Unilever, Ong was also responsible for leading key brand and marketing teams at Johnson & Johnson and Lux Asia.

Riccardo Vannetti - Salvatore Ferragamo, CMO Italy’s Salvatore Ferragamo has appointed former fashion magazine journalist Riccardo Vannetti as its new chief marketing officer as the luxury group pushes ahead with a management shift. The group’s former chief executive, Eraldo Poletto, left the company in March at a time when the group is trying to freshen the look of its products to appeal to younger customers. Ferragamo said the appointment of Vannetti “has the aim to strengthen the managerial structure.” In his new role, he will be responsible for the planning and the implementation of all marketing and communication activities related to the brand strategy, reporting to the Vice Chairman, James Ferragamo, Brand and Product Director.

11

Q2 2018 R3view

Agency Leadership Movement Cliff Atkinson

RPA, Executive Director, Digital Media Santa Monica’s RPA has hired Cliff Atkinson to fill the newly-created role of Executive Director, Digital Media. The new executive will report to RPA’s EVP, Chief Media Officer Jim Helberg and lead all media including strategy, social, programmatic, search and more. He joins from Saatchi & Saatchi, where he spent 12 years running digital strategy and investment. During his tenure, he was credited with breaking ground in further integrating media and creative— and RPA looks to have him do the same for their shop.

Michael Guarino

FCB Health, Chief Commercial Officer FCB Health has promoted Michael Guarino to the role of Chief Commercial Officer. Guarino has served as Chief Strategy Officer for FCB Health for the past seven years. Before that he spent four years as managing director of FCB Health’s Area 23. He is an FCB Health veteran dating back decades, having first joined the network in an account management position in 1996. In his new position, Guarino will continue to drive overall strategy, while also evaluating new services and offerings and developing new products.

Jeff Geheb

VML, Chief Experience Officer VML has promoted Jeff Geheb to the newly created role of Chief Experience Officer.

In the new position, Geheb will be tasked with leading VML’s global platforms and experience practice. He will continue to be based at VML’s Kansas City headquarters and report to VML global CEO Jon Cook. Geheb originally joined VML as a business systems analyst in 2003 and worked his way up to Partner, Chief Technology Officer in 2011 before leaving to join Saepio Technologies as technology chief for a year and then rejoining the agency in the same role. He has worked with clients including Microsoft, Ford, Kimberly-Clark and Sprint.

Julie Scelzo

Mcgarrybowen, Global Executive Creative Director Mcgarrybown has hired Julie Scelzo in the newly-created role of global Executive Creative Director on the American Express account. Scelzo returns to the agency world after over two years as Vice President, Executive Creative Director at Pandora, during which time she led a rebranding effort, following over a year and a half as a creative strategist with Facebook.

Prior to leaving for Facebook, she spent around five years with FCB West as Senior Vice President, Group Creative Director, working on the Dockers and Levi’s and helping bring in the Trulia and Air New Zealand accounts. She also has experience as a creative director with Leo Burnett and Element 79, working with brands including Hallmark, Tampax, Altoids, Propel and Gatorade.

Max Geraldo

Arnold, Executive Creative Director Arnold Worldwide welcomed Max Geraldo in the role of Executive Creative Director. Geraldo arrives at the agency from We Are Unlimited, which is Omnicom’s dedicated McDonald’s unit, where he also served as executive creative director. Before joining We Are Unlmited last July, Geraldo spent over a year and a half as Senior Vice President, executive creative director with FCB Chicago. Prior to relocating to the US, he spent three years as executive creative director for FCB Brasil.

www.rthree.com

Brad Higdon

Zimmerman, CMO Less than a month after former CMO Scott Thaler officially assumed the same position at Mattress Firm, Florida Agency of the Year Zimmerman Advertising has crossed the holding company divide to hire a new marketing chief. Brad Higdon joins the Omnicom shop to lead its new business efforts, effective immediately. The incoming CMO most recently served as president of MullenLowe’s Winston-Salem, N.C. office, leaving that position approximately one year ago. He had previously spent more than a decade at The Martin Agency, where he led an account you may know called GEICO.

Daniel Chu

MRM//McCann, Chief Creative Officer MRM//McCann has hired Daniel Chu as Chief Creative Officer for the West Coast, where he will lead creative operations in San Francisco and Salt Lake City. Chu joins MRM//McCann from Possible, where he served as global Chief Creative Officer since the summer of 2015.

Before joining Possible he spent around four years with Deutsch L.A., serving as Executive Vice President, executive creative director, leading the experiential department and working with clients including Taco Bell, Volkswagen, Sprint, Snapple and Target. Prior to that, he spent over two and a half years co-leading the branded entertainment discipline at Momentum Worldwide as senior vice president, executive creative director, working with such clients as Microsoft, Verizon and American Express.

Laura Forman

KBS, Executive Director of Brand Strategy The MDC Partners shop, KBS, has poached Laura Forman from Ogilvy to serve as its new Executive Director of brand strategy. She was formerly group planning director there. In her new position, Forman will oversee a department of 12 brand strategists on all accounts and “will also play a central role in redefining KBS’ own culture,” according to the agency. A 20year industry veteran, Forman has led assignments for clients including Target, American Airlines and Chevy. She founded her own strategy boutique, Forthought, and served as Vice President and account planner for Deutsch L.A., planning director for Fallon and account planner for Goodby Silverstein & Partners.

Kasper Aakerlund UM, APAC President

UM has appointed IPG Mediabrands Hong Kong CEO Kasper Aakerlund to the newly created role of UM president, APAC. He will report to IPG Mediabrands APAC CEO, Leigh Terry, and UM Global CEO, Daryl Lee. After the move, IPG Mediabrands Hong Kong will be led by an executive leadership team consisting of the local market agency leads. Aakerlund first joined IPG Mediabrands as Hong Kong CEO in September 2016 to lead business strategy and operations. He has a background of leading digital transformation across media organizations in Europe and Southeast Asia, holding positions as the Chief Digital Officer of Carat and Vizeum, and CEO and Head of Isobar Nordics, before moving to Asia as chief operating officer and CDIO of GroupM Vietnam and Indonesia.

13

Q2 2018 R3view

About R3 OUR REASON FOR BEING

In a word, we are about transformation. R3 was set up in 2002 in response to an increasing need from marketers to enhance their return on marketing, media and agency investments, and to improve efficiency and effectiveness.

We want to help CMOs make marketing accountable.

RETURN ON AGENCIES

OUR BACKGROUND

We help marketers find, pay and keep the best possible agency relationships – covering Creative, Media, PR, Digital, Social, Performance, Event, Promotions and CRM.

We’ve worked with more than one hundred companies on global, regional and local assignments to drive efficiency and effectiveness.

We have talent based in the US, Asia Pacific and Europe and partners in LATAM and Africa.

We take the lead on improving the Integration process through proprietary software and consulting.

Through global work for Samsung, Coca-Cola, Johnson & Johnson, Visa, Unilever, and others, we have developed robust benchmarks and process targets for more than 70 countries.

What we do We are an independent transformation consultancy hired by CMOs to make their marketing more measurable and accountable to business impact.

How we do it •

We invest in the best talent, bringing in senior leaders from marketing, agency, and analytic backgrounds.

•

We’re independent. Because we’re not your marketing team or agencies, we’re empowered to be honest and transparent.

•

We use external benchmarks. We have proprietary data pool to inform our in-depth analysis.

•

Since 2002, we’ve interviewed more than 2,000 marketers about their agency relations.

•

Since 2006, we’ve spoken to more than 80,000 consumers in China’s top-twenty cities and continue to do so every three months.

•

We have co-developed software to measure agency and media performance.

•

Each month, we exclusively track over 500 agency new business wins, as well as 100’s of deals in the marketing M&A space.

•

We have insight into global best practice. We work with companies who want to do bestin-class marketing across diverse categories and geographies.

•

We authored the book “Global CMO” about marketers leading Digital Transformation around the world.

•

We maintain an ongoing database of media costs for key markets.

www.rthree.com

Driving Transformation for Marketers and Their Agencies

RETURN ON MEDIA

We offer professional analysis of the media process, planning and buying with proprietary benchmarks and tools to set and measure performance.

We conduct financial audits to validate and benchmark transparency.

RETURN ON INVESTMENT Using a bespoke and proprietary methodology, we help benchmark and provide insights into how your digital strategies perform in your category and across categories.

Contact us North America

Latin America

Europe

New York

São Paulo

London

57 W 57th Street, 4th floor

Rua Jerônimo da Veiga

3 Waterhouse Square

New York, NY 10019

428 – conjunto 21

138 Holborn, EC1N 2SW

USA

São Paulo, Brazil

T +44 20 7998 9588

T +1 646 416 8088

T +55 11 3071 0678

Madrid Velazquez 24 3 izd Madrid 28001 T +34 91 702 1113

Asia Pacific Beijing

Shanghai

Hong Kong

A 1801, Chaowai SOHO

4203, United Plaza

23/F, One Island East

No.6 B Chaowai Street

1468 NanJing Road West

18 Westlands Road

Chaoyang District

Shanghai, 200040, China

Hong Kong

Beijing 100020, China

T +8621 6212 2310

T +852 3750 7980

T +8610 5900 4733

F +8621 6212 2327

F +8610 5900 4732

Singapore

Ho Chi Minh City

69A Tras Street

Floor 3, 25A Mai Thi Luu Street

Singapore 079008

Da Kao Ward

T +65 6221 1245

District 1, HCM City, Vietnam

F +65 6221 1120

T +84 08 6290 3336

Social Media www.rthree.com

weibo.com/r3china

facebook.com/r3worldwide

linkedin.com/company/r3

Website

Facebook

Weibo

twitter.com/R3WW Twitter

LinkedIn

15

www.rthree.com