Newspapers push wrong solution to online duopoly 10 Jul 2017 The Wall Street Journal and others want the right to bargain collectively with Facebook and Google. The titans’ dominance of the $83 bln U.S. digital ad market is a concern, but not just for print media. Combating it requires antitrust enforcement, not an industry carve-out.
Bolloré clan’s deal sums don’t add up 23 Jun 2017 Vincent Bolloré’s Vivendi is buying ad group Havas, run by his son Yannick. The younger Bolloré says it may create at least 390 mln euros of value, justifying the premium. That’s dubious: the premium is arguably bigger than he claims, and the return on investment still looks low.
Publicis broadcasts ad world’s shortcomings 19 Jun 2017 A shareholder group says the French media agency flattered its operating margin by including a one-off compensation payment. The company defends its accounting but the case is a dose of unhelpful publicity for an industry facing a bid-rigging probe and claims of opaque pricing.
Viewsroom: Donald Trump can’t melt Paris accord 1 Jun 2017 The president is pulling America out of the climate pact signed by 195 countries in 2015. But the continued commitment from cities, companies, investors and other states will limit the damage. Meanwhile Goldman Sachs steps into a Venezuelan mess. Plus: advertisers as activists.
Publicis pay hike shows where real power lies 1 Jun 2017 Long-time boss Maurice Lévy will receive 2.8 mln euros as chairman – more than he was paid as CEO. After 30 years in charge of the advertising group he has much to teach his successor. But his presence on the board inhibits fresh thinking at a firm that has struggled for growth.
Vivendi’s Havas deal hangs on new media logic 16 May 2017 The French media group reckons the convergence of advertising, distribution and content justifies its 3.9 bln euro offer for the ad firm. Yet the numbers don’t add up without heroic assumptions, and Havas customers may not take kindly to the new arrangement.
Even yellow flags can’t dent Facebook’s growth 3 May 2017 The social network largely defied its own executives’ slowdown warnings with a 51 pct jump in ad sales, helped by Instagram’s success. Boss Mark Zuckerberg is adding 3,000 staff to police content after a spate of violent videos. He may need more to contain reputational risk.
Alphabet ad autopilot heads for profit and bother 27 Apr 2017 The $610 bln Google parent racked up another strong quarter with a 22 pct increase in revenue. Its deepening digital-advertising duopoly with Facebook helps make growth more predictable – but may also bring the companies closer to a face-off with antitrust watchdogs.
Publicis revenue reprieve could prove fleeting 20 Apr 2017 The French ad group suffered a smaller-than-expected hit to its top line in the first quarter, as growth in Europe offset account losses and weaker spending in the U.S. The risk is a greater backlash to murky industry pricing practices that spreads beyond America.
Google boycotts expose flaws of digital ads 23 Mar 2017 Verizon and AT&T joined other advertisers in pulling spending from Google over questionable content. A bigger issue is the opacity of the search giant and its fellow online duopolist, Facebook. By withholding money, companies are voicing doubts about digital ads’ effectiveness.
Google and Facebook tipping balance of power 20 Mar 2017 The web-search giant lost Havas as a client in Britain and is being squeezed by the UK government over ad placements and policies. Similarly, Mark Zuckerberg’s social network faces outcries over fake news. Pressure is slowly but steadily mounting for this $1 trln digital duopoly.
WPP growth machine creaks 3 Mar 2017 The advertising group, despite being in more than 100 countries, expects revenue to increase less than global GDP in 2017. Losing a couple of big accounts like AT&T and VW help explain it. But the media business faces structural threats, and WPP’s margin growth has a ceiling.
Publicis’ Levy pulls plug on heir’s kitchen sink 9 Feb 2017 The French ad giant announced a 1.4 bln euro digital writedown and shrinking fourth-quarter organic growth. New boss Arthur Sadoun thus has less scope to open his tenure with a big dump of bad news. Current CEO Maurice Levy remaining as chair won’t make that any easier, anyway.
Audi’s gender equality plea lacks horsepower 6 Feb 2017 The German premium carmaker made an emotive call for gender pay equality in a Super Bowl TV commercial. The cause is honourable. But the message came from a company with no women on its executive board. Binding legal rules are needed to turn fine ideals more quickly into action.
Super Bowl 51 may be defensive, political football 3 Feb 2017 The championship game on Sunday caps a tough year for the league. Though some 100 mln people are expected to tune in, TV ratings have been down all year. Add sponsors tapping into post-election rancor and a president with an old grudge against the NFL and it could be brutal.
Facebook’s torrid growth turns up heat on Snap 1 Feb 2017 The social network beat expectations on both the top and bottom lines despite concerns business is slowing. The stellar results underscore the grip Facebook has over its nearly 2 bln users. Proving it can overcome such dominance will be rival Snap's big challenge ahead of its IPO.
Publicis boss exit plan is bad ad for succession 27 Jan 2017 Maurice Levy is finally stepping down from running the $16 bln advertising firm, but he'll only move to the supervisory-board chairman's office. The presence of Levy, in charge for 30 years and a proven reluctant ex-CEO, risks clipping the wings of the new leader, Arthur Sadoun.
It’s past time for Japan to tackle overwork 6 Jan 2017 A suicide at a top advertising firm shines an ugly spotlight on Japan's dangerously long hours. Relaxing a culture of workaholic conformity won't be easy. But official plans to curb overtime are a good start. And a better work-life balance would bring real economic dividends.
Digital ad dominance has TV in crosshairs 8 Dec 2016 Google, Facebook and their ilk will as of next year control more of the $500 bln advertising market than broadcasters. Along with the rise of ad-free series from Netflix and Amazon, it'll push down the cost of TV commercials, leaving traditional program makers in a jam.
Antitrust probe will hasten Mad Men decline 7 Dec 2016 The U.S. Justice Department is investigating whether advertising firms rigged bids in the $5 bln commercials industry. The business is already under pressure from Facebook and Google and their own clients. The whiff of more malfeasance is further evidence the model is broken.