Mumbai: Ad maestro Martin Sorrell, executive chairman of S4 Capital, sees three agencies ruling the ad world going forward. “The two strong big agencies are Publicis and Omnicom. A potential merger of Havas and Dentsu International operations would be interesting to see as it could create a significant third force,” Sorrell said in an exclusive conversation with BestMediaInfo.com.
When asked about WPP and its dominance, Sorrell commented, “WPP is not a dominant force anymore. In terms of market cap, I think it is the third largest now. I believe Omnicom and IPG will surpass it, and Publicis surpassed it last year.”
Sorrell said, “The two strong agencies are Publicis and Omnicom, and the weak ones are obviously IPG (which lost huge amounts of business, including clients like GM, Coca-Cola, Amazon, Verizon, and Microsoft), WPP, Havas, and Dentsu. If Havas merges with Dentsu International, it would be interesting.”
Explaining the scenario, Sorrell compared the ad world to the investment banking industry, where giants like Goldman Sachs and JP Morgan coexist with specialised boutiques like Centerview and Rothschild. Similarly, large holding companies are on the path to consolidation, with the “strong acquiring the weak.”
“Clients will choose based on their needs, as demonstrated by Coca-Cola's consolidation and General Motors' fragmentation of their agency relationships. The industry will become polarised, with powerful global players and agile boutiques at opposite ends of the spectrum,” said Sorrell.
Regarding recently axed global CEO roles at Group M, Sorrell said that Brian Lesser, who is currently heading Group M, is doing the right thing. “Brian Lesser, who is running Group M now, is very strong. He is doing the right thing, but I think it’s too late. I think WPP has tipped over.”
Sorrell’s S4 recently onboarded Ketan Desai, ex-COO of WPP Grey India, for Monks, its operating brand in India. With this hiring, Sorrell aims to scale in India, he told BestMediaInfo.com. The ad guru sees huge opportunities in the country and aims to drive growth and capitalise on this potential.
“I remain a raging bull about India in a worldwide context and particularly in the Asian context. Under the leadership of Prime Minister Modi, who clearly understands the importance of leadership, branding, and vision, I think the Indian economy is going to be very strong. It has some challenges in the urban areas, but rural areas are strong,” Sorrell said.
By 2050, Sorrell sees India in the top five economies of the world, along with its Asian counterparts—China and Indonesia. The other two, according to Sorrell, will be Germany and “probably Japan.” The Indian economy, Sorrell predicts, is going to grow at 6–8%, with digital growing 10–15% this year.
“India is one of the few countries that is forecasting its population to increase rather than decrease. So, if I were an Indian manufacturer, retailer, or wholesaler, I would prioritise maximising the domestic market before expanding globally. These opportunities are substantial and driven by technology. What's particularly compelling about India is its tech-savvy population; the country not only understands marketing but also possesses a strong grasp of technology,” Sorrell told BestMediaInfo.com.