Publicis merits bottom place in advertising pile 19 Jul 2019 The French group lost 850 mln euros of market value after disappointing sales forced CEO Arthur Sadoun to scale back 2019 revenue ambitions. Overpriced M&A and broken promises on growth explain why the advertising group’s valuation is lower than peers – even troubled rival WPP.
Instagram is becoming Facebook’s sugar daddy 24 Apr 2019 The $521 bln social network’s image-sharing unit is a big reason for strong first-quarter top-line growth. There’s room to wedge more revenue-earning ads into users’ feeds. The risk, though, is the distractions and dodgy content that hamper the “old” Facebook spread to Instagram.
Publicis’ biggest buy distracts from deeper issues 15 Apr 2019 Chief Executive Arthur Sadoun is spending $4.4 bln on Alliance Data Systems’ Epsilon digital marketing unit. It’s a bold bet on more targeted advertising, but does little to help the French group hit next year’s 4 pct organic revenue growth target, or lure back lost clients.
Publicis’ $5 bln deal would push data fad to limit 1 Apr 2019 The French group may buy Alliance Data’s digital-marketing unit. The mooted price tag is manageable given Publicis’ pristine balance sheet. But the low returns on offer suggest that CEO Arthur Sadoun is worried about keeping up with data-rich ad rivals and tech giants.
WPP would win most from $5 bln data-business sale 19 Mar 2019 Buyout groups Advent and Blackstone are circling the ad group’s market-research unit Kantar, Reuters reported. Private-equity buyers could hike margins and combine it with a rival. WPP’s wad of cash and retained access to its consumers’ data sounds more enticing, though.
Facebook’s presidential foes are also customers 14 Mar 2019 Silicon Valley has become a political punching bag for Elizabeth Warren and other 2020 contenders. But their campaigns are big users of Facebook and other online platforms. It reflects the power of tech giants, and suggests that bashing them may not persuade voters.
WPP’s dysfunction discount is now too slim 1 Mar 2019 The 12 bln pound ad group’s results were hardly enough to merit a 7 percent rise in its shares. WPP’s miserable forecasts mean it merits a wide discount to French rival Publicis, which has better growth prospects. Investors are cutting new CEO Mark Read a lot of slack.
Three digital ad giants are no better than two 20 Feb 2019 Google and Facebook’s combined share of U.S. online advertising is poised to fall for the first time this year. The reason: Amazon is taking a bite out of their slice. Even a muscular challenger does little to reduce the case for tighter regulation.
Ad groups’ growth spin is a marketing flop 7 Feb 2019 Publicis shares fell 11 pct after a bad fourth quarter. Along with peers like WPP, the French group is priced at a hefty discount to other media companies despite its promise to boost sales. The relentless shift of advertising spending to tech giants means scepticism is deserved.
German $5 bln listings group is poor LBO advert 14 Dec 2018 Scout24, which hosts online ads for homes and cars, ticks two boxes for possible private equity suitors: it’s cheaper than peers and has lower margins. But a buyer like Silver Lake would struggle to load much more debt on the firm. Looming regulation is another threat to returns.
Google finds Congress still searching for a clue 11 Dec 2018 U.S. lawmakers who grilled company chief Sundar Pichai failed to land a blow, and showed themselves ill informed about what the search engine actually does. The knowledge gap is risky for tech firms, because it increases the risk of regulation that misses the mark.
WPP’s new investor pitch contains too much hot air 11 Dec 2018 CEO Mark Read wants to slash costs and get the $13 bln ad group growing in line with rivals by the end of 2021. That’s the right idea. But his growth plan looks heavier on jargon than detail, while cuts are modest. Overall it’s less convincing than one of WPP’s whizzy campaigns.
WPP’s broken financial model is hard to fix 25 Oct 2018 The ad group’s old strategy of modest growth supplemented by M&A and share buybacks no longer works. New CEO Mark Read faces shrinking sales and a big debt pile. Given how long it will take to streamline the business and invest in new technologies, investors will be unforgiving.
Nike puts politically divisive spring in its step 4 Sep 2018 The U.S. brand is putting Colin Kaepernick, the first NFL player to kneel for the national anthem, in its revived “Just Do It” ads. Airlines, sports stores and pizza chains have wrestled with partisan issues. In the commoditized sneaker trade, it’s a risk worth taking.
WPP’s new boss skips honeymoon period 4 Sep 2018 Mark Read unveiled bad news on profitability and froze the dividend on his second day in the job. The $20 bln ad group will have to invest more in technology and unify its sprawling divisions while cutting debt. He may be forced to cut payouts to shareholders in the coming year.
WPP has least bad CEO at its fingertips 13 Aug 2018 The ad group has yet to replace Martin Sorrell four months after his exit. External candidates are proving hard to come by. Best to appoint de facto interim boss Mark Read on a permanent basis. He’s tech savvy and has insider knowledge that will help unify the sprawling business.
Facebook and Twitter are lucrative quagmires 24 Jul 2018 Bosses Mark Zuckerberg and Jack Dorsey are under fire for allowing misinformation and bullying to flourish on their social networks. Lawmakers and users are beginning to notice, but advertisers have a higher tolerance – and that’s what keeps the swamp bubbling.
Publicis setback is healthy dose of adland realism 19 Jul 2018 Despite an unexpected drop in revenue in the second quarter, the French group still expects to hit financial targets this year and beyond. It may well do so. Even so, the hiccup is a sign that outswimming rivals in treacherous media waters is proving harder than anticipated.
Aussie ad deal offers signs of a frothy M&A market 21 Jun 2018 France’s JCDecaux is bidding $800 mln for APN Outdoor, disrupting the target’s own dealmaking. Australia is an appealing market and this could be a smart deal for the suitor. But the flurry of activity, and the exuberant reaction of JCDecaux shares, sends a worrying message.
Sorrell fan club can live with WPP scandal 12 Jun 2018 The former CEO left the ad group after a probe into alleged misconduct, which he denies. Institutional investors have since stumped up funding for a new venture, and handed Sorrell a controlling share. That suggests they care more about returns than his personal reputation.