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Can Chris MacDonald hack it at McCann New York?

April 26, 2013

Chris MacdonaldHaving, a while back, complimented Chris Macdonald on the improved quality of his tailoring, it would be churlish not to congratulate London’s sharpest suit on landing the hot seat at McCann New York, where he will soon become president.

Macdonald, who combines the position of McCann London group chairman with agency chief executive, is one of several senior executives to be reshuffled in the first significant management changes to be made by Harris Diamond, Nick Brien’s replacement as Worldgroup chief executive. In effect, Macdonald is to take up a position that has been – inexplicably in a creative agency –  left vacant for over a year. His predecessor, Thom Gruhler, quit for Microsoft after – like many around him – coming to blows with Brien over his shoot-from-the-hip management style. The seat had in the interim been kept warm by Hank Summy – a Brien hiring with no traditional agency experience – who has now been elegantly side-shifted to the bafflingly esoteric role of president, commerce at Worldgroup’s digital and direct arm, MRM.

Diamond is evidently throwing away the fairy-cycle stabiliser wheels and proving his own man earlier than expected (or perhaps, more accurately, than I had expected).  When he was picked as McCann Worldgroup CEO last November, McCann’s parent Interpublic hit upon the curious expedient of appointing two “handlers” – hemispheric presidents, Luca Lindner and Gustavo Martinez – to babysit the new boy while he learned the ropes. That was wholly understandable, given that Diamond was a former PR man with no experience of creative advertising. But might have sent out the wrong signal to clients: does McCann trust this man to do the job properly, or not?

In the event, the gamble involved in appointing him – he is well-regarded for his EQ – appears to be paying off. Six months into Diamond’s tenure, McCann has seen off Goodby Silverstein, recaptured the front-end of the General Motors pantomime pony; and won US domestic business as well. Quite a reversal of the negative business spiral that had dogged his predecessor’s two-and-a half-year reign.

It’s easy to see why Diamond might have called upon the services of Macdonald. Where his predecessor loved technical complexity, Diamond is all for human simplicity. “This is a straightforward business,” he told AdWeek recently. “If you can come up with great ideas and make an impact on your clients’ business you do well.”

The great idea, so far as Macdonald is concerned, is threefold. First, his London group role since 2008 has given him invaluable experience of breaking down silo walls and making the various parts of the marketing services machine interoperable. Second, Macdonald is very good with big clients, who these past few years have been feeling a bit bruised and under-loved. Third, London has had a good new business record under his stewardship, in contrast to certain other parts of the McCann empire.

But will the Macdonald pixie dust be enough to salvage McCann’s battered global reputation? That is the question observers are asking. Twenty-five years ago, or so, it was relatively easy for a smooth-talking, self-possessed Brit to make it “Over There” after making it over here. Britain’s reputation for advertising creativity and big brand marketing was second to none in the world. And, if that were not recommendation enough, we could also play the consumer and strategic planning card.

That was then. Now, our effortless superiority in those disciplines should not be taken for granted. And besides, the world has moved on in other ways. It’s a grimmer, greyer place. Post-crash, clients are challenged and risk-averse. As one source of mine puts it: “The need to meet quarterly numbers is more important than waving a magic wand of creativity. This is a low- to no-growth environment.” Add to that the complications of procurement, the massive disruption of traditional channels caused by social media, and the fiendish complexity of planning and measuring campaigns these days, and it becomes triply more difficult for any individual, however talented, to achieve cut-through.

McCann has many weaknesses as a creative agency brand, but one of its great strengths over the years has been its knowledge-in-depth of client businesses. That reputation took a knock under Brien. We have yet to find out whether Macdonald is the man to restore it.

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Nick Brien heads for McCann exit. But who would wish to step into his shoes?

March 16, 2012

Word reaches me that Nick Brien, chief executive officer of Interpublic Group’s troubled leviathan McCann Worldgroup, will be stepping down very shortly. Possibly within a few weeks.

The size of Brien’s no doubt handsome severance package is likely to remain a mystery, the reason for his departure less so.

McCann has, in recent years, been a slow-motion accident gradually picking up speed. The traditional banker of Interpublic, accounting for 30% of group revenue (according to the Wall Street Journal), it was once a licence to print money on account of 5 foundation global clients. These were: Unilever, Exxon Mobil, Nestlé, L’Oréal and General Motors. More recently it has come to rely upon Microsoft as well. Here’s the recent tally:

Unilever (mostly Walls) has long gone, and the souring of the relationship can hardly be blamed upon Brien (even though the last bit of media did leave in 2011). Less excusably, his 2-year tenure has coincided with serious difficulties afflicting the other five.

Nestlé? McCann lost the crown-jewels global Nescafé creative account (worth about $25m income annually) to Publicis Groupe. McCann had handled the vast majority of the business for several decades.

Exxon? Lost the $200m creative account (which went back to 1912) to BBDO after a year-long review completed late last year. Universal McCann, MRM and Momentum have, however, managed to cling on to media.

General Motors? McCann lost out in the recent contest for GM’s $3bn global media business (of which Universal McCann had a substantial chunk), and is still on tenterhooks over whether it has won, lost or drawn in a creative review of the worldwide Chevrolet business, which accounts for the bulk of GM adspend.

Did I mention the Microsoft débâcle? About a year ago, UM and Mediabrands lost more than half Microsoft’s global media business after a review which saw the $615m US business pass to Publicis’ Starcom MediaVest.

And so to L’Oréal – perhaps the single most important McCann relationship, accounting (I’m told) for about 20% of its operating profit. Brien made a fundamental wrong turn last year when he sought to shoehorn Maybelline into a standalone shop, Beauty Village, which was also to house L’Oréal’s main brands. Characteristically (for a former media man), he had spotted the cost benefits of ruthlessly streamlining the business. Equally characteristically, his critics would say, he showed almost zero client empathy in setting about the task. When L’Oréal’s ‘C Suite’ finally tumbled to what he was doing, they were apoplectic and nixed the whole project.

Worse, it would appear, is on the way for McCann. L’Oréal now seems poised to take a considerable amount of its creative work in house. From what I hear, it will drop one of its two global agencies. And given that Publicis is the Paris-based home team, currently rejoices in a better brand name and – in Digitas – a superior digital operation, who do you think that unlucky agency might be? Driving L’Oréal’s thinking, sources say, are potential cost savings of $50m a year.

An indication of the way the wind is blowing may be detected in the recent defection of McCann’s L’Oréal worldwide account director Aude Gandon, who joined Publicis Worldwide last month. Gandon was a Brien protegé. She was formerly managing director of Leo Burnett’s beauty, fashion and luxury division, Atelier-lb, and was brought into McCann shortly after Brien got the top job.

Hers is not the only departure. Note that Garry Neel, the GM brand leader at McCann is quitting (although he will stay on as a consultant). As is Matt Freeman, who was hired as chief global chief innovation officer and vice-chairman less than a year ago. Only last week, Cathy Saidiner, president of McCann LA since 2008 – and a key Nestlé contact – also quit, according to an AdWeek report which also carried a denial that Brien is about to step down.

Against all these losses, McCann under Brien has yet to nail a significant new business win. Sense a pattern, anyone?

Equally interesting, while on the subject of Brien’s imminent departure, is who might replace him. Who, now that Brett Gosper has quit, has sufficient stature within McCann? And if an external candidate, which first-rate suits would be prepared to risk their reputation in taking on such a vertiginous challenge? The ideal candidate might well be Andrew Robertson, BBDO Worldwide CEO (who has not so far landed that top Omnicom job he was rumoured to be angling for). But why would he want to go to McCann? Surely not for the money.

UPDATE 19/3/12: Another top level casualty: this time Tom Gruhler, global managing partner at McCann Worldgroup, who is heading off to Microsoft as vice-president of phone marketing. Gruhler, who joined McCann in 2003, oversaw a specialist technology and telecoms unit the agency was developing. Previously, he was point man on the Verizon account, but much of that defected to agency-of-the-moment McGarryBowen in 2010. There’s now an inescapable whiff of the Führer Bunker, April 1945, in the air.


Watch out, there’s a Hytner about – Jim takes the helm at IPG’s Initiative

March 4, 2012

Interesting to see that Jim Hytner – whose career has more switchbacks to it than the mille miglia – is once more emerging triumphant from the quicksand of a career in marketing.

Hytner has just replaced long-serving Richard Beaven as worldwide chief executive of Interpublic Group subsidiary Initiative. Beaven (a surprisingly urbane man for the head of a media-buying house) has apparently left to spend more time with his passion for photography, an alternative vocation he says he has toyed with since childhood.

While none of this is to be doubted, we wonder whether he was also uncomfortably lodged in a career cul-de-sac. Beaven was once seen as a successor to Nick Brien when Brien left Mediabrands (the overarching arm of Interpublic’s media operations) to take on the top job at McCann Worldgroup. But the Mediabrands role instead went to Beaven’s chief rival at Universal McCann, Matt Seiler, who has been aggressively reorganising McCann’s media operations ever since.

Anyway, enter Jim. He’s relatively new to the world of media buying, having joined another IPG subsidiary, Universal McCann’s G14 (essentially the bits that aren’t America), as its boss only two years or so ago. Like Brien, he’s a Brit who has done rather well in the upper echelons of American-dominated McCann – the traditional breadbasket of Interpublic Group. There, however, the parallel ends. Where Brien is essentially a media services specialist who has made it into top agency management, Hytner’s much more colourful career has embraced the full ambit of marketing: he’s been an FMCG client; marketing director at some of Britain’s top television companies; client at one of Britain’s leading banks; a digital content wonk; and is now trying his hand – seemingly successfully – at the agency business.

The first thing to note about Jim is he is the youngest scion of a talented and very competitive family. All three Hytner brothers – the sons of a successful Manchester barrister – have set the bar high in their chosen fields. Nicholas, now Sir Nicholas, is the director of the National Theatre with such successes as the Madness of George III and The History Boys to his name. Richard, a lawyer by training and a Sloan Fellow of London Business School, is now deputy chairman of Saatchi & Saatchi Worldwide.

“Cheeky chappy” Jim, less cerebral than his two brothers (they went to Oxbridge; he went to a redbrick), gives every appearance of being a lot more entrepreneurial. Certainly the young Hytner was prepared to give anything a go. First, like his eldest brother, he tried to tread the boards, but this was trumped by a potential career as a chef de cuisine. The way he tells it, his attempts to follow in the footsteps of Marco Pierre White and Gordon Ramsay stopped dead one night, when thanks to a kitchen shift at the exclusive Miller House Hotel in the Lake District, he suddenly realised he was going to miss the 1985 FA Cup Final between Manchester United and Everton. To say that Jim is fanatical about Manchester United would be a considerable understatement. He (like more self-effacing elder brother Richard – though I’m not so sure of Sir Nick’s views on this subject) eats, lives and breathes the club’s highs and lows. “It’s the one final I’ve ever missed in my whole life, so I thought I can’t be doing with this hotel lark,” he tells us. Haute cuisine‘s loss was marketing’s or, more specifically, Kraft’s gain.

To this day, football analogies are never long absent from Jim’s utterances. And, in truth, it is a passion that has stood his career in good stead in the laddish, sports-mad environments of Sky TV, ITV – where he was marketing director – and (dare I mention it?) media buying circles. Though what Americans make of all this “soccer” talk, I have no idea.

Will Jim ever reach the top – conceivably, in time, replacing Brien? Over the years, Hytner’s maverick antics have made him a rather endearing fixture of the UK marketing scene. But they have also raised questions about his gravitas. This, after all, was the man who dreamt up those infamous idents of celeb TV personality Keith Chegwin in the nude when he was marketing director of Channel 5. What Jim may choose to call “brave” others in the industry characterise as controversy for the sake of controversy. He did something to allay this enfant terrible reputation during a (comparatively sober) stint as UK marketing director of Barclays Bank. But it remains to be seen whether he has mellowed sufficiently in his middle years…


Will Nick Brien succeed in steering McCann off the rocks?

October 13, 2011

McCann WorldGroup is critical to the performance of Interpublic, the world’s fourth largest marketing services group; it provides about one third of its revenues.

Just recently it hasn’t been doing very well, a worrying state of affairs both for IPG shareholders and McCann’s chief executive of about 18 months, Nick Brien.

The fact is, it has not won any major new business under Brien’s stewardship. Worse, it is in deep trouble with two of its core clients, Nestlé and L’Oréal.

Last month, Nestlé expressed the depth of its displeasure by assigning all of McCann’s signature Nescafé business (nearly everything, globally) to rival Publicis Groupe. Reportedly, that’s $25m revenue down the Swanee.

Now comes news that McCann has screwed up its already troubled relationship with beauty house L’Oréal (which, by the way, is about 30% owned by Nestlé).

The Nescafé affair might – might – be written down to bad luck. Clients do move on eventually, even ones like Nestlé that have been with McCann for several decades.

The L’Oréal fiasco (for such it is) can, on the other hand, only be ascribed to McCann’s managerial incompetence. Stay with me, the story’s a bit complicated but bears retailing.

L’Oréal and its Maybelline brand are even bigger business for McCann than Nescafé: together they account for $100m a year IPG revenue, of which 80% comes out of McCann (according to AdWeek).

Historically, the relationship has been somewhat complicated by the fact US creative for Maybelline is handled by another IPG agency, Gotham, although McCann is responsible for adapting and distributing that work throughout the rest of the world.

Thinking, no doubt, that the account could be more efficiently run as a spin-off unit with its own profit and loss account, Brien and his lieutenants have spent the last year, and an enormous amount of money, creating something called Beauty Village.

Beauty Village was set up at the instigation, and with the full collaboration, of Cyril Chapuy – now global brand president of L’Oréal Paris, but formerly in charge of the Maybelline brand.

Client endorsement enough, you would have thought. But apparently not. No one had checked upstairs with the ‘C Suite’ at L’Oréal, with the result that Beauty Village has now had to be razed to the ground, despite all the hullabaloo a couple of months ago attending its launch.

Fairly or not, the buck for this disaster is going to stop with Brien. Already there is innuendo that the former media man has not got the client-handling skills it takes to run an organisation like McCann.

Whether that is actually true I’m not so sure. Media men may be direct rather than placatory by nature, but that has not stopped the likes of Tim Bell and Rick Bendel (formerly COO of Publicis Worldwide, now marketing supremo at Asda) succeeding in more senior roles.

Besides, there may be a silver lining to the cloud now settling over Brien’s head. At first sight the Nestlé and L’Oréal affairs look like unforced errors playing into the hand of Maurice Lévy, head of Publicis Groupe (core clients, both, at Publicis Worldwide). But Lévy has troubles of his own, with the Nestlé relationship at any rate.

For one thing, he has just lost Carter Murray, his key Nestlé point man, to WPP – which poached him as president-CEO of Y&R Advertising North America. Murray managed to raise Nestlé to Publicis’ premier and most profitable client.

For another, Lévy appears to have overplayed his hand by winning the £250m Ferrero European media business last month. Yes, it’s only media and, yes, a small part was already handled by PG media arm Zenith Optimedia. But now that Ferrero has upped the ante, Nestlé is feeling distinctly uncomfortable about sharing a media agency with its most deadly European rival.


Is the Neural Network the answer to McCann’s prayers?

March 22, 2011

You may not think there is much of a connection between a new car launch and what young McCann Erickson advertising executives get up to in a night-club.

But to Lee Daley, McCann Worldwide’s global chief strategy officer, making connections like that is fundamental to a new way of unlocking his agency’s intellectual assets, providing effective consumer insights at a fraction of their normal cost and repositioning the McCann name at the same time.

McCann has always been awarded penalty points in the agency world because of its sheer size. Its machine-like reputation probably dates back to a period of acquisition megalomania in the early sixties, when the agency was under the stewardship of Marion Harper. Result: it is valued for the sophistication of its global services and its account management skills, but rarely for its creative thinking.

In fact, this reputation is somewhat misleading. In the fifties, McCann was highly regarded for the quality of its consumer insights. Through Herta Herzog, director of creative research, it became high-priest to the mysteries of motivational psychology, the then voguish domain of Dr Ernest Dichter and the School of Motivational Research. It powerfully influenced the thinking of one Vance Packard, author of the Hidden Persuaders (1957).

In a sense, Daley is tapping into that “smarts” tradition. But his focus is on unlocking the hidden talents of McCann’s staff and thereby turning a perceived disadvantage, McCann’s cumbersome size, into an asset. “In a way, it’s simply a numbers game,” he tells me. “McCann has 22,000 employees worldwide. That’s a massive talent pool, but it’s fair to say we haven’t always exploited that creatively, partly because of our brand image. Compare that with so-called creative agencies, Wieden & Kennedy, Mother or whatever. Full of talent, no doubt, but a fraction of our pool.”

Ah yes, but how exactly does he intend to release that pent-up intellectual capital, and to what end, exactly? The answer is something called the Neural Network, a project Daly has been working on for about 5 years – and which now involves some 8,000 of McCann’s employees.

Expressed simply, NN is a kind of internalised social media platform (although Daly recoils in horror from the suggestion that it is Facebook for McCann). It builds up a profile which matches every employee’s formal status in the organisation with their private interests and areas of specialism outside their current expertise. It encourages the setting-up of special interest communities and dialogue between their members.

The advantages are clear. It’s a levelling tool in an hierarchical organisation, which can be used by management as a kind of crowd-sourcing resource or virtual pitch team. Also reasonable to assume, judging from the number of people who have volunteered to join the database: it’s quite motivating for staff – for whom it may open up new career opportunities.

The challenges are equally clear: it’s a levelling tool in an hierarchical organisation, about which senior management must initially have had considerable misgivings. Without suitable controls, it could indeed become a kind of office Facebook. And even when exploited professionally, anarchy might ensue if senior managers were allowed carte blanche in appropriating extra resources via the Neural Network.

For this reason, all requests are carefully monitored by a group of senior executives called “Neural Network Gods”. In London, the key executive is group chief Chris Macdonald. Others include Daly himself and McCann Worldgroup CEO Nick Brien. The process of control is still being mapped out as the Neural Network is gradually extended to the other 14,000 Worldwide employees.

Equally important, from Daly’s point of view, is the challenge of monetising ideas thrown up by the Neural Network as McCann’s intellectual property. As is well known in agency circles, ideas are what you give away in a pitch: it’s very difficult to patent them. Clients might well welcome the idea of a me-too Neural Network, persuade McCann to set it up, and then run off with it.

Daly has partly answered this problem by setting up a 3-year rolling contract with Santa Barbara-based IntroNetworks – the company that devised the software – which gives McCann exclusive licensing rights.

If other agencies want to jump on the NN bandwagon, they may of course do so. But they will have to build their own software, and that takes time. And time is what Daly hopes will give McCann its leading advantage.


Hans Riedel – the Porsche mastermind behind Jaguar’s bright Sparks ad plan

February 21, 2011

I cannot be alone in wondering what possessed Jaguar to pluck the majority (not all, note) of its $100m global advertising and marketing communications account out of Euro RSCG and place it in the hands of an untried joint-venture called Spark44, which will be head-quartered in Los Angeles.

If you don’t like the agency, fire it; don’t leave it clinging onto the business in nearly a third of your markets. If you do like the agency, but you’re unsure about the quality of its work, call a global review and take it from there. What’s happened here, by contrast, looks amateur and ill-judged: an accident waiting to happen at a time when Jaguar should be worrying about other things. Such as its dealers’ morale and the reliability of its new core product, the long-delayed XJ large saloon range.

Jaguar, which is part of Jaguar Land Rover and now owned by the family of Indian billionaire Ratan Tata, has been rather cryptic about the new marketing services JV – possibly because the news got out prematurely. So let’s try to fill in some of the gaps.

They say it’s not in-house but will be “100% dedicated to developing the Jaguar brand”. I take this to mean that 1) Jaguar is to be the majority shareholder in the enterprise and 2) that Spark44 will not be permitted to chase other clients.

In other words, the model is slightly different to Samsung’s relationship to Cheil (it can, but is so smothered it has never been able to diversify satisfactorily). And perish the thought we should so much as mention Kevin Morley Marketing – which for 3 unhappy years during the early nineties handled the £100m Rover brand. Even so, there are some unsettling parallels with KMM. As will be seen.

What little we definitely know about Spark44 comes from its website which, alas, has now been locked down with password protection (Nerves? Unreadiness? Both?). Before it disappeared from public view, a logo was to be discerned, in the form of a large spark-plug. The “44” part probably relates to the four partners ostensibly running the JV; and the fact that they will operate in Jaguar’s 4 main markets: the USA, Britain, Germany and China  – which, together, account for about 70% of the marque’s sales.

These four partners are: Alastair Duncan; Steve Woolford; Bruce Dundore; and Werner Krainz. Who? Well, good question. First, all of them have big agency backgrounds (McCann and BBDO figuring particularly prominently in their CVs), and specific experience on car accounts. Krainz (German, as the name suggests) and Dundore are creatives. London-based Duncan was until 2009 chief executive of McCann WorldGroup digital arm MRM Worldwide, and earlier helped to set up digital agency Zentropy. Finally, and most important, there is LA-based Woolford. Woolford, after a spell running a barber shop or two in LA, has been a group account director at BBDO (Mitusbishi being one of his clients); and also has a connection with McCann and Duncan, having – surprise, surprise – occupied senior positions at Zentropy and MRM.

But the really interesting thing about Woolford is his client-side experience: earlier in his career he worked for both Porsche and BMW. And it is this pedigree which has given him an entrée to the senior German car executives and consultants who now – effectively – run Jaguar worldwide.

Yes, the Indian Tata business dynasty may own Tata Motors – which bought Jaguar and Land Rover from Ford for £1.15bn in 2008 – but it is the Germans who run it. Last year, Tata put the respected former head of General Motors Europe and ex-BMW executive Carl-Peter Forster in overall charge of its global motor operations. Separately, but about the same time, it picked former BMW executive Ralph Speth as CEO of the Jaguar Land Rover division. Speth reports to Forster but – importantly for the future perhaps – the Speth appointment was made not by Forster but by Ravi Kant, vice chairman of Tata Motors.

Speth quickly set about refashioning JLR’s senior management in his own image. One of his most significant hirings is former senior Saab and Porsche executive Adrian Hallmark to the new position of Jaguar global brand director. Indirectly, Hallmark is a replacement – with much-reduced powers – for managing director Mike O’Driscoll, who leaves this year. Over the past 3 years, O’Driscoll – in charge of product and sales, as well as marketing – has been the key transition figure in the handover of Jaguar from Ford to Tata. Among other things, he was pivotal in cementing Euro’s relationship (which began during the Ford era in 2005) with the brand’s new owner.

There are a lot of names in this thickening plot, but let’s start tying it together with the introduction of yet another one. Speth has been surrounding himself with expensive consultants: in fact, Jaguar has been spending more on consultancy recently than it has on agency fees, according to one well-placed source. If so, that must be a tidy sum, since the Euro RSCG fee is commonly thought to be $10m per annum.

Prime among these consultants is one Dr Hans Riedel, who first made his appearance last summer, prior to the Hallmark appointment. It is Riedel (left) who is effectively calling the shots in marketing. Now about 62, he has worked full-time for only 3 employers in his life: Young & Rubicam; BMW, which he joined in 1980; and Porsche, from which, after 12 years, he retired in 2006. At Porsche he was Mr Sales and Marketing – the man who helped launch the sports-car maker’s third-leg strategy, the Cayenne 4×4 off-roader; and who oversaw an explosion of Porsche sales, which soared from 18,000 in 1994 to over 90,000 by the time he left. At BMW, he acquired extensive knowledge of the North American market helping, among other things, to reorganise BMW’s motorcycle operation there.

The point is this. Riedel quickly made his presence felt at Jaguar by cancelling an imminent global all-model ad campaign – to dealers’ consternation – and bringing in the relatively unknown Woolford as his right-hand man. Next thing we know, Woolford and his chums have carved out for themselves the lion’s share of Jaguar’s marketing communications budget.

In whose best interest is this marketing services JC being set up: Jaguar’s or the people running it? But, equally important: will it actually work?

First, a bit of background. Euro’s advertising strategy performed an early and vital service for the Jaguar brand. The “Gorgeous” campaign definitively pushed Jaguar upmarket, by detaching it from the Ford name and repositioning it as a luxury item. Its task was assisted by the scrapping of Jaguar’s entry model, the unsuccessful X, and the revitalisation of the rest of its range, the XF, XS and the XJ. Whatever quibbles there may be over the XJ’s reliability, all three ranges have been well received critically; and the 2010 JD Power ratings – which measure customer satisfaction – prove the point by ranking Jaguar the highest-scoring luxury marque in the US auto industry.

The “luxury item” strategy is remarkably similar to that which has prevailed at Porsche over the years, at a noticeably lower cost in marketing services expenditure. Riedel  – who must be regarded as the eminence grise behind Spark44 – was not a believer in bloated advertising budgets then; and the evidence is, he is not one now (particularly when it comes to the flim-flam of digital and social media).

Maybe he’s right to be so conservative: his track record speaks for itself. But there are also reasons for suspecting that Spark44 will not succeed in the objectives it seems to have set itself. Will it save Jaguar money? Initially maybe. Its problem is the brand’s global reach. Although it has sought to circumvent the issue of network overheads by leaving all the messy bits to Euro, Spark44 is still lumbered with a fundamental problem. It is servicing only one brand, and that brand must therefore, single-handedly, subsidise the cost of regional presence. There is a complexity of engagement  – and therefore expense – in that presence which may, so far, have eluded the drawing-board agency strategists. The Kevin Morley (left) experiment failed not simply because of the posturing, pugnacious personality of Rover’s former managing director-turned-adman, but because it was and remained a one-trick pony. It could find no substantial partner to spread the costs of a European network. Nor, in the last analysis, could it give advice that was in any sense robustly objective, tied as it was to a single paymaster. Morley quit before his 5-year term was up and, shortly afterwards, the business was sold to Lintas, later a part of Lowe.

Jaguar  might have been better advised to approach Havas with the idea of a 50/50 joint venture run out of Euro. After all, the infrastructure is halfway there already. Jaguar is handled by a specialist agency with a dedicated strategy unit, operating out of its two chief markets London and New York (not always in that order), in order to avoid account conflict with Peugeot. That way the Jaguar JC could have spread the risk while asserting greater control over marketing communications and the associated costs. What’s more, as a global strategy it would have been a good deal more coherent.

For all that, let’s not prejudge Spark44’s chances of success. We’ll know it’s working when, in about a year’s time, Speth turns his attention to Y&R’s global contract with the more successful Land Rover brand, and attempts to replicate the Spark44 model. Either that, or he may find himself without a job.


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