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…


Strong Interpublic financial results swell optimism in global ad recovery

February 24, 2012

Things really must be getting better in the global advertising economy, the cynical might observe. Interpublic, the world’s fourth-largest and most financially challenged advertising conglomerate, has just reported a decent set of Q4 results.

Despite a heavy kicking from principal clients SC Johnson – which quit after decades at IPG subsidiary DraftFCB – and Microsoft – which withdrew all its media strategy and planning business from media powerhouse Universal McCann – IPG was able to report profits (net income) up nearly 40% (50 cents compared with 36 cents per share) on revenue slightly ahead at $2.07bn.

Admittedly IPG chief executive Michael Roth was wary of calling a recovery. “We have some local wins and some existing clients spending money, but I wouldn’t say that the recovery is taking hold and we’ve seen bottom,” he said during the conference call.

But that cautious scepticism was surely belied by his assertion elsewhere that the company is setting out on the acquisition trail.

Besides, a slew of uplifting data elsewhere seems to suggest that IPG’s positive figures are not an isolated anomaly. Publicis Groupe and Omnicom, respectively numbers 3 and 2 in the world, have already posted Q4 results ahead of analysts’ predictions. WPP has yet to report, but there is no evidence the results will be grim. On the contrary, I have every reason to believe pre-tax profits and revenue will be well ahead of analysts’ expectations.

More circumstantially, but no less significantly, the US Advertiser Optimism Index – roughly equivalent to the IPA/BDO Bellwether Report over here – has just reported the second-highest level of confidence in ad budgets being raised since 2008. The index, published by research company Advertiser Perceptions, measured the sentiment of advertisers and agencies during October and November.

Finally, UK-based WARC has just produced a report suggesting America is leading the world out of (ad) recession. “Marketing spend in the Americas increased sharply in February,” it noted in an update to its monthly Global Marketing Index. Even doldrum European ad markets are experiencing “improving conditions”, it seems.

Let’s hope IPA/Bellwether doesn’t spoil the party with its next quarterly report, which must be coming out quite soon.


Carat in line to scoop $3bn General Motors global media account

December 7, 2011

A strong rumour suggests Carat has scooped the $3bn General Motors global media buying and planning account, which has been under review since August.

If true, this outcome amounts to a huge blow for Publicis Groupe, which services the majority of the account through its media specialist Starcom MediaVest, and – by the same token – a big fillip for Aegis, owner of Carat, the publicly listed company steered by Jerry Buhlmann.

The review, one of the biggest of its kind in the world, was instigated by GM marketing supremo Joel Ewanick as part of a slew of measures designed to tighten up the automobile giant’s worldwide marketing performance.

Before the review, GM used up to 20 media specialists. However, the bulk of the spend – two-thirds in fact – is committed to North America (the Chevrolet, Buick and Cadillac marques), and much of that has passed through Starcom since 2005. Carat, which has been on the GM roster for a slightly shorter period but consolidated its hold during a 2010 review, handles the $500m European business (Opel and Vauxhall). Interpublic’s Universal McCann was responsible for much of the Latin American business.

Although the review was slated as “global”, it did not in fact include GM’s operations in nascent markets India and China. What it did include, according to the briefing notes, was “digital…, SEO and social media.”

If Ewanick has stuck to his word and included these in the consolidated Carat package, his decision will represent a double-whammy for Publicis. Back in the summer, PG boss Maurice Lévy sought to shore up his position in the increasingly important GM digital account by taking a 51% stake in Big Fuel, which holds the North American social media account. The acquisition was aligned under the Vivaki digital unit.

What we don’t know, of course, is how profitable the account will be for Aegis. In their desperation to win an account, media men often allow their competitive negotiating instinct to overcome more rational arithmetical considerations, and pare the margins down to the bone in an all-out attempt to win. That said, a win will do Aegis’ share price no harm at all. And, being on a roll, Buhlmann can expect more clients to put him and his team at the top of their shortlists.

 



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