“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
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.