“I Would Not Want To Be Running A Creative Agency Right Now”: MediaCom Boss
MediaCom’s new(ish) CEO Sean Seamer believes creative agencies whose bread and butter business is expensive 30-second TVCs have a grim future in this tech-centric, data-heavy mobile world.
The problem, Seamer told B&T in a wide-ranging interview, is that there’s simply no margins in making costly ads for the telly networks anymore.
“I would not want to be running a creative agency right now because the core of my business, the TVCs that I built the agency on the back of, are becoming less important to consumers and to clients and it’s become an extremely low margin business, they simply don’t have scale,” said Seamer who was elevated to MediaCom boss in October.
“Scale is going to become so much more important particularly as content becomes more and more short form. Creative agencies have no scale, they have no data, they have no tech strategy… and if you’re looking at where the industry is going in the next five years it is these agencies who will need to ask themselves, ‘Well, what have I got?’” he said.
Seamer admitted it was a controversial viewpoint and added that everyone was now doing creative including his very own MediaCom who’s ditched straight buying and now go by the moniker of a “content and connections” agency.
Another problem Seamer said was that a lot of agencies were outsourcing their tech to the likes of Google, Adobe or Oracle and “they’re just going to have the rug pulled out from under them because they don’t own the tech stack”.
Not that the planning/buying side of the industry isn’t without its problems, too. Many insiders argue that margins are now so tight in buying that the agencies have been forced to add a creative element for clients to make up dollar shortfalls.
“Sure, there are problems in media planning and buying,” Seamer agreed, “and, yes, it has to become more efficient and we will do that through programmatic and automation and that is happening.
“We as GroupM/WPP have to go through that transformation because of the investments that we have been making in technology. And it’s not just programmatic, that’s the easy answer. For us it’s about being much less of an agency and much more of being a genuine solutions provider whether that’s in data, in technology, in content; we’ll be focused on solutions and that means delivering genuine value back to clients. It’s a classic Rob Norman (GroupM’s global chief digital officer) quote, ‘We have no interest in being the tallest pygmy’”.
Seamer is MediaCom’s first CEO since the misreporting scandals of late 2014 and doesn’t believe his elevation to the top job was some sort of poisoned chalice after the ensuing firestorm cost the agency a number of its top-flight clients. In an interesting twist, Seamer believes MediaCom took the fall for an issue – inflated TV ratings, unreturned credits, client overcharging – that was widespread throughout the entire industry.
“I think we became the poster child last year for the whole industry. Was it fair or unfair? There’s no use complaining. I think we all know we just have to move on,” he said.
“And to be honest the senior management at GroupM handled it very, very well. The senior management were very transparent, they engaged the press, they explained exactly what was going on.
“Yes, we lost some clients last year but we had a lot more stick by us and stay and they’ve stuck by us because of the people in the business. But at the same time I acknowledge wholeheartedly that we have a perception issue from a client point of view and an employee point of view. The only way to improve that is to make sure our people buy into the new direction of the agency, that we have a strong culture and a sense of self and a strong belief.”
Latest News
You Can Still Register For The 30 Under 30 Awards Live Stream!
You can now livestream 30 Under 30 & watch it in your jim-jams. Or, buy a ticket & watch it in person in your jim-jams.
Former oOH! Supremo Brendon Cook Joins Influencer Marketing Platform Vamp
The oOh! Media Founder and former CEO joins as independent board member
Should We End The Quest To Replace The Cookie?
Looking at the latest identity solutions being explored by the digital advertising industry, and whether seeking a single alternative to third-party cookies is actually a lost cause.
Asia MarTech Society Appoints Ken Ip As Chairman
The Asia MarTech Society (AMS) has appointed Ken Ip as chairman of its 2021–22 board of directors for a two year term. An award-winning marketing and brand communications strategist, Ip has previously held several senior roles, from corporate consulting to public affairs advisory, for leading multinationals and conglomerates. He is currently the group head of […]
Have You Submitted Your Nominations For B&T’s CMO Power List?
Does your CMO wear a power suit, possess impeccable hair & have an addiction to teeth whitening? Enter them here & now!
Australian Consumer Sentiment At 11-Year High
Apparently you haven't had things so good since 2010! Unless you're on the dole or work in the travel industry, that is.
Initiative Studio Launches ‘Taste Life On The Flip Side’ For Pernod Ricard Winemakers’ Brancott Estate
Pernod Ricard and Initiative Studio have launched “Taste Life on the Flipside” for Brancott Estate’s Winemakers’ newest wine varieties. The campaign idea had its genesis in 1975 when Brancott Estate planted the first sauvignon blanc vines in Marlborough, New Zealand. This was an iconic moment as it flipped a convention that said Marlborough was only […]
Mardi Gras Partnerships Have Raised Nearly $250,000 For The LGBTQI+ Community In 2021
Sydney Gay and Lesbian Mardi Gras has continued its programme of community grants and support funded by valued partnerships with ANZ, Google and Facebook Australia, and from the organisations own surplus, delivering a total of $248,000 to LGBTQI+ community groups for this year’s festival season. Three grants funds, the ANZ Community Grants, Google Parade Grants […]
Bundaberg Rum Brings The Pub Choir Back To Queensland Pubs
Who hasn't drunk half a bottle of Bundy in the blazing heat & not wanted to recite some Edgar Allan Poe or Lord Byron.
Selena Gomez Will Host Global Citizen’s ‘Vax Live: The Concert To Reunite The World’
International advocacy organisation Global Citizen will host VAX LIVE: The Concert to Reunite the World, a global special that aims to inspire vaccine confidence worldwide and help get the COVID-19 vaccines to everyone, everywhere. During the special, Global Citizen, will call on philanthropists and corporations to donate enough “dollars-for-doses” to vaccinate more than 27 million […]
Respect Victoria Launches New Campaign, ‘Pride, Respect, Equality’ Asking People To Respect LGBTIQ+ Family Members
Unsurprisingly, Israel Folau isn't the face of a new campaign calling for respect of LGBTIQ+ family members.
Uncle Tobys Initiates Brand Relaunch With ‘Oatervention’ Campaign Via Ogilvy
Is there nothing more warming for breakfast than a bowl of oats. Well, apart from a bacon sandwich and a whisky shot.
R/GA Study Reveals Brand Loyalty Crisis As 60% Of Aussie Customers Unlikely To Return For Repeat Purchases
Study finds "brand loyalty crisis" among consumers. Presumably not the addictive ones like booze, fags & greasy food.
Heineken Welcomes Reopening Of UK Pubs + Barbers With ‘Shear Genius!’ Activation, Via Coolr
Heineken unveils 'buy a pint, get a haircut' promo. Apparently, there's no 'mower 'round the pole' after the sixth one.
Completely Bonkers But Brilliant Bakery Ad Sees Sexist Gym Rat Turned Into Delicious Dough
This latest ad out of the Philippines proves that the madness is not exclusive to President Rodrigo Duterte.
Fremantle Media Launches Investigation Into Neighbours Set After Allegations Of Racism
Surely if Neighbours is truly a unique peek into Australian suburban life you'd have to expect a bit of racism?
Destination NSW Appoints Kathryn Illy As GM Of Consumer Marketing
Destination NSW has a new GM of consumer marketing who says Wilcannia & Taree may have to go into the "too hard basket".
JCDecaux Promotes Oliver Newton To Chief Sales Officer
JCDecaux promotes Oliver Newton to chief sales officer. Or, as the French would say, "directeur des ventes".
Tuesday TV Wrap: ABC’s Prince Philip Coverage Pulls Just Over 300,000 Viewers
The ABC's Prince Philip tribute confirms Australians would far prefer to watch lascivious dim bogans on Channel Nine.
A Cookin’ Colonel Becomes Instantly Cool In This Rappin’ Spot For KFC
Colonel Sanders proves there's still a place for Boomers in ads. Less so for poor old Mayor McCheese & the Hamburgler.
Clemenger’s Activation Agency Traffik Rebrands, Expands Service Offering
Traffik rebrands and expands service offering. Although B&T understands that doesn't include crystal healings or Reiki.
Papaya Secures Two New National Accounts
Fortunately for you, B&T's hasn't squeezed the insidious business buzzword "low hanging fruit" into this Papaya piece.
Jonny Cordony Promoted To Zenith’s Sydney MD
Jonny Cordony promoted to Zenith’s Sydney MD. Assumes Russell Crowe's Maximus Decimus Meridius pose for press photo.
30 Under 30: Channel Seven’s Ben Stavert On Social Media’s ‘Big Bang’
We're talking social media’s ‘big bang’. But not the prevailing cosmological model of the observable universe.
Giving Women A Voice: VMWare’s Heidi Savva On How The Tech Industry Can Support Women Leaders
B&T's chatting with VMWare's Heidi Savva. Well, to be fair we did most of the listening & attended to the tea making.
Has Australia Missed The Tech Boom (And How We Can Catch Up)
Have we missed the tech boom? After all, we did miss the electric car boom, green energy boom & vaccine rollout boom.
VERSA Launches “World-First” Website Delivering Hyper-Personalisation
This is promising a "world-first" which, admittedly, is something you don't read on B&T very often.
British Railway Passengers Mortified By Greyscaled Train Timetable Tribute To Prince Philip
Prince Philip has joined overpriced tickets, late running services & vile toilets on UK rail passengers' list of gripes.
The End Of Average: Why ‘Addressable Priming’ Is The Future
Here, Wavemaker's James Boardman talks addressable priming. Not so much talks but addresses it even.
Apple “Not Against Digital Advertising” Despite Privacy Crackdown: Tim Cook
Apple boss says he's not anti digital advertising. In fact, he'a all for whatever makes the company a shitload of cash.
