A recent article in industry tome Campaign featured Dave Reed, G&T’s Strategy & Planning Director, commenting on the Publicis’ recent poor results and the market’s reaction. Here’s a few of the highlights, for the full article be sure to check out Campaign…
“When Publicis Groupe reported last week that third-quarter revenue had fallen 2.7%, the news sent jitters across the market. Not only did Publicis’ share price take a nosedive, falling 13% the following morning, but it also sent WPP’s share price down 4%.”
Campaign asked various industry experts for their take on the results. Here’s what Dave had to say:
There are indications that the problems at Publicis and other big holding agencies are indicative of a wider economic uncertainty. Yet you only need to look to film and TV production, widely cited as a saving grace of the UK economy in the last quarter, to see that there are also some fundamental issues with the large agency business model.
Dave then went on to expain what he believe is the difference between the TV & film space and traditional agencies:
Where TV and film has adapted to the new opportunities of a changed world, in which online streaming is taking over terrestrial TV, large agencies are struggling to adjust to the reality that no matter your size it’s the quality of creative, how it’s delivered and speed of response that determine reach. Brands want fast, agile, intelligent solutions – something that is near impossible to deliver through large, slow-moving holding companies.
Dave’s thoughts were featured alongside some industry heavyweights, notably Sir Martin Sorrell, so he was certainly in good company.