Eric Friedman – Marketing.fm

Sir Martin Sorrell has a keen eye for acquisition (both hostile and friendly) when it comes to the marketing services industry. In the last year, Sorrell has taken an interest in online media & technology companies such as Wild Tanget, JumpTap, Video Egg, and most recently: 24/7 Real Media.

WPP’s strategy is remarkably different from other holding companies. As agencies struggle to meet the demands of new marketing, it appears that WPP is trying secure media outlets and for it’s client base in addition to it’s pursuit of interactive service expertise.

One might trace the roots of this investment strategy back to Sir Martin’s “Friend-Enemy” description of the Google-WPP relationship (WPP spent $200 Million+ with Google in 2006). As more and more media spending shifts online, Sorrell would like to squeeze as much as possible out of each budget.

As far as I’m concerned, this raises some serious ethical questions for WPP:

How will WPP’s media and advertising agencies make unbiased decisions when it comes to budget allocation?

While certain discounts will be undoubtedly be appreciated by clients, will the integrity of a brand’s marketing budget be sacrificed for the future success of WPP?

There is a reason that marketers contract media agencies to plan and buy: clients want expertise and relationship leverage in order to maximize the efficiency of their spend. If WPP purchases 24/7, will buyers still be able look at each and every ad network campaign opportunity equally?

Perhaps WPP should focus more on the evolution of some of its behind-the-times portfolio agencies (Grey Global Group?).

Related Links:

Advertising, Media & The Digital Revoultion

WPP: Group M Interaction Strategy Study, April 2007

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