Sir Martin Sorrell spoke at the 43rd edition of the IAA World Congress earlier today. Sir Martin delivered the keynote speech and underlined the issues the industry faces, globally. He focused on a '10-point list' as outlined below:
1) Shift to East, South and South East: There is a potential shift in power in the world. TheUSAis still the center, but undeniably power is beginning to move, with a focus still on "BRICS and the next eleven". WPP sees a G2 world in the future.
2) Overcapacity and shortage of human capital: There is massive capacity in key industries such as automotive, but there are also changing lifestyles and aging populations.
3) Rise and rise of the web: 12 years ago, WPP's web business was close to zero and now it is 30%.
4) Growth of retail power and the changing relationship between retailers and consumers as populations move to urban areas, with busy two earning families using e-commerce more and more.
5) Importance of internal communications - data: People talk about 'data' and we are applying more technology to data and its role in our organization's communications, more than ever.
6) Global and local structures: WPP sees the rise ofAfrica, which represents significant opportunities with a dramatic shift in power taking place.
7) Relative power of finance and procurement: The balance of marketing functions and finance is very much out of balance, and this needs to be addressed in all parts of the world and not just the western economies.
8) Growth of government: WPP has government clients in almost every country and they are more significant players than ever. In some parts of the world, such asChina, there is also an element of 'Government-run capitalism'.
9) The acceptance of social responsibility: The issue and attention towards sustainability is considerable now. And for companies to 'do good' is still 'good' for business.
10) Industry consolidation:This was a big day for news with the announcement of Publicis Groupe and Omnicom Group merger being called off.
The 43rd IAA World Congress continues today with names from the global advertising, media and marketing industries comprising Jim Elms, Global CEO, Initiative; Andrew Ward, vice president marketing, Etihad Airways; Ben Hughes, deputy chief executive, Financial Times; Doug Pearce, CEO, OMG China; Mykim Chikli, CEO, Zenith Optimedia China; Tim Andree, executive chairman, Dentsu Aegis Network.
Updated Date: May 09, 2014 13:58 PM