WPP chief Martin Sorrell made headlines on Friday using the old John Wanamaker adage. He didn't go as far to say that 50% of clients money is wasted, but he did say that they were wasting 15-25%. He just didn't know which 15-25%, reports Business Insider.
Or does he? Sorrell was then reported to say that magazine and newspaper investment was probably 50% too high. While that could be the case in Europe, where magazines and newspapers take up a higher percentage of available ad dollars, that view was not applicable to Australia, according to a straw poll of media agency CEOs this morning.
Two spoke off record. One argued there was no mileage in taking on a man of Sorrell's stature. One of those suggested it might be "posturing, given that Group M do negotiations mid year".
The other no-namer said that Sorrell was spot-on, but did not want to speak on the record for fear of jeopardising some current negotiations. "It's a very pertinent topic right now with a lot of advertisers and media companies. I think Sorrell is spot on. Digital is under represented by about 50% and can reach audiences in a more effective manner."
However, he was the only CEO contacted that was in agreement with Sorrell.
Mark Coad, local head of PHD, said that he "can't speak on behalf of other markets, but I don't think that is the case here".
Mat Baxter, head of UM, which counts News Limited as a major client, was more robust. He said Sorrell's opinion was "fairly myopic and one dimensional" and that such a broad approach would lead to newspapers and magazines being disproportionately penalised relative to the audiences they attract.
"You can't make sweeping statements about the appropriate levels of investment in specific channels because these decisions vary by brand and by category," said Baxter. He said print publishing would continue to play a "critical strategic role" in categories including finance, fashion and FMCG.
"If you are a brand like Prada or Gucci then fashion magazines are going to play a disproportionately important role than other channels because titles like Vogue establish and sustain your fashion credentials.”
Baxter said Sorrell's comments “might make headlines but that doesn't mean they are right or make any sense. For what it's worth, I completely disagree with them”.
His boss, Mediabrands executive chairman Henry Tajer, agreed that the statement was "bold ... I don't agree." He said that magazines and newspapers were "going through a renaissance" and that "moving forward will be able to demonstrate their use from an engagement and revenue perspective."
OMD CEO Peter Horgan also disagreed Sorrell's statement could be applied to Australia. "[Papers and magazines] are certainly having their role within the comms landscape continually reassessed on an ongoing basis," he said. "But they are still highly relevant for a number of categories. OMD assesses each channel on merits and budget is accordingly deployed."
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