Advertising

Sorrell saga points to boardroom rift at WPP

4 Apr 2018

The ad group is investigating allegations of “personal misconduct” against its 73-year-old CEO, which he denies. The leaked probe suggests some directors have misgivings following a share-price slide. The bigger problem, though, is WPP’s structurally-threatened business model.

Cox: Sinclair is more totalitarian than democratic

4 Apr 2018

Donald Trump's favorite $3 bln broadcaster is downright deplorable, at least when it comes to corporate governance. The board is stocked with ancient cronies – with no women in sight. Fold in the controversy over its Orwellian editorial policies and the stock is best avoided.

Losing WPP boss could be pricier than keeping him

3 Apr 2018

The board is investigating Martin Sorrell for potential improprieties, the WSJ reported. It’s hard to think of a CEO more enmeshed in a company’s strategy. Even if nothing comes from the probe, it should force investors to confront their unhealthy reliance on WPP’s main man.

Viewsroom: Facebook’s multiplying problems

29 Mar 2018

The social network founded by Mark Zuckerberg is reeling from a data harvest on some 50 million users. It will take time for the $440 billion firm to feel the impact but people are starting to slowly unplug. Plus, the world’s largest consumer-drone maker may go public.

Facebook crisis could bust digital-ad duopoly

23 Mar 2018

Advertisers may pull money from the social network, which together with Google sucked up 84 pct of digital ad spending in 2017. That cash is likely to stay with data-rich platforms rather than older media. Amazon could benefit if CEO Jeff Bezos can avoid raising antitrust fears.

Oscars signal spread of sports-led live-TV decline

6 Mar 2018

Sunday’s Academy Awards show was the least-watched in its history. Viewers are also losing interest in American football and the Winter Olympics. Dwindling audiences for real-time events suggest one of U.S. broadcast television’s last bulwarks is in danger of collapse.

WPP raises spectre of adland stagnation

1 Mar 2018

Martin Sorrell’s group lost 2.5 bln pounds of value after it said sales and operating margins may flatline in 2018. That looks conservative, since events like the World Cup help advertisers. A bigger concern is new earnings forecasts that suggest stasis in the long term.

Twitter’s first profit isn’t much to tweet about

8 Feb 2018

Edging into the black triggered a 20 pct bump in the social-media company’s market value, to $24 bln. Part-time boss Jack Dorsey seems optimistic despite outside scrutiny of Twitter’s feeds. But it’s hard to see how a result achieved by cutting costs is a great sign for growth.

Verizon and Comcast look to play catchup in M&A

23 Jan 2018

The telecom and cable giants appear smaller in the rear-view mirror of Disney’s $52 bln Fox deal. They are unlikely to stand still for long. AOL and Yahoo haven’t done enough to up Verizon’s content game, while a merger could fulfill Brian Roberts’ wireless ambitions at Comcast.

Facebook discovers cost of factory-farming users

12 Jan 2018

The $550 bln social network’s success harvesting ad dollars from mass-appeal content made it very profitable. The snag is that users are increasingly unhappy. Mark Zuckerberg’s return to focusing more on their welfare may limit short-run profits but should improve sustainability.

WPP rebrands its weak Tokyo defence

21 Nov 2017

The advertising giant is selling into a $1.4 bln buyout it has argued “significantly undervalues” Japanese partner ADK. That reveals a weaker-than-billed negotiating position. One small consolation may be a flimsy plan to stick around by re-investing in the Bain-led deal.

Facebook’s long-term problem just got shorter

1 Nov 2017

Mark Zuckerberg vowed to do more to combat fake content in response to the fallout from Russia-backed ads. He warned profitability will take a hit just as the social network added almost $5 bln to the bottom line. As government scrutiny grows, the $500 bln firm has little choice.

WPP woes cement Mad Men bargain-basement valuation

31 Oct 2017

The group may cut targets for the third time this year. Advertising firms are grappling with frugal customers and online sales. Investors rate them as lowly as media dinosaurs like newspaper sellers. M&A options look tricky. Their best bet is to hope clients start spending again.

Publicis pick-up the exception to ad land gloom

19 Oct 2017

The French group reported higher revenue, defying rivals WPP and Havas which binned growth targets this summer. That’s cold comfort for advertising bulls. Publicis seems to be taking a bigger share of a still-challenged market. Past underperformance makes it a poor barometer.

Facebook could do with more Sheryl Sandberg

12 Oct 2017

Mark Zuckerberg's right-hand woman deftly fielded questions about Russia-backed ads and the social network's broader role in society. It was a notable contrast to the bumbling way her boss handles the limelight. Sandberg may be better placed to oversee Facebook's next phase.

WPP handed lucky exit from Japanese jam

3 Oct 2017

The British ad group, which owns 25 pct of Asatsu-DK, reckons Bain’s $1.3 bln offer for the Asian company is stingy. But WPP is already a winner. CEO Martin Sorrell will either profit from the private equity group’s margin-boosting clout or get the best terms in a decade to exit.

Bain has advantage on WPP in Japanese ad-land spat

3 Oct 2017

The U.S. buyout firm wants to buy Japan’s third-largest ad agency for $1.3 bln.  That would let Asatsu-DK escape a disappointing tie-up with major shareholder WPP. The UK giant may not like it, but WPP has little room to extract a better price and may have to sell eventually.

Facebook owners ignore Russian affair at own peril

22 Sep 2017

The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.

Uber hops in driving seat to serve ad firms notice

20 Sep 2017

The ride-sharing firm sued a digital advertising agency claiming fraud and seeking some $40 mln in damages. Clients rarely, if ever, take Madison Avenue to court. Already under pressure to prove their value, the case is another sign ad middlemen need to clean up their act.

Ad world’s bling days may be over

13 Sep 2017

The likes of WPP, Omnicom and Publicis risk a low-growth future. Revenues are stagnant and they are over-exposed to slow-growing developed economies. Agencies may be forced to copy the austerity already practised by their consumer-goods clients and pay more attention to margins.