Sorrell Unveils His Next Move, But Is It Bad News For Creative Agencies?

Sorrell Unveils His Next Move, But Is It Bad News For Creative Agencies?
SHARE
THIS



Sir Martin Sorrell has unveiled his next plans for his post-WPP venture, S4 Capital, and industry experts are predicting it spells bad news for traditional creative agencies.

Earlier this week, Sorrell released a 191-page prospectus outlining his plans for S4. In early July, Sorell famously outbid WPP to snare the Dutch production company MediaMonks for a whopping €300m ($A4487 million) and much of S4’s plans revolve around its expansion.

The document described S4’s mission as “to create a new-era, new-media solution embracing data, content and technology in an always-on environment for global, multinational, regional and local clients and for millennial-driven digital brands.”

Sorrell said the venture is already working with brands including Adidas, Corona, Google, Johnson & Johnson, Netflix and Shell.

However, as commentators have noted, the prospectus mentioned no plans to acquire any creative agencies to expand the business, meaning Sorrell will bring content in-house as he plans to work directly with clients and cut traditional creative agencies out of the food chain.

The prospectus noted that targeted acquisitions would include content, data analytics, media planning and digital media buying.

It noted: “The company will maintain a disciplined approach to acquisitions, both as to any acquisition consideration payable and the working capital requirements of any acquired business. However, given its focus on digital opportunities, valuations are likely to be full.”

The prospectus also listed S4’s primary competitors as “consultancy businesses with an emphasis on technological services in the digital marketing arena”. 

Many are taking that to believe that Sorrell’s plans are to go head-to-head with the big consultancy players now playing in advertising’s traditional space, the likes of Accenture, PwC and Deloitte.

“In particular the integration of creative services and technology and the ability to deliver globally are viewed as being key to success,” the prospectus said.

“Moreover, a number of organisations that have traditionally been regarded as consultancy businesses with an emphasis on technological services in the digital marketing arena have begun to acquire creative operations and are therefore moving more directly to compete with combined operators such as MediaMonks,” it noted.

 

Please login with linkedin to comment

martin sorrell S4 sir martin sorrell WPP

Latest News

Is B2B Marketing Missing Its Emotional Touch?
  • Media

Is B2B Marketing Missing Its Emotional Touch?

B2B marketers could learn a thing or two from their B2C colleagues, argues WP Engine VP APAC sales Mark Randall in this guest post. It surprises me how many B2B organisations are not quite hitting the mark when it comes to reaching their audience. When talking directly to businesses, many brands are missing an opportunity […]

Opinion

by B&T Magazine

B&T Magazine
Burger King Trials Reusable Packaging
  • Media

Burger King Trials Reusable Packaging

Here's a top initiative from Burger King that does kinda sound like a slightly tedious Craig Reucassel documentary.

by B&T Magazine

B&T Magazine
Smarter Use Of Art & Science Stretch Auto Budgets Further
  • Media

Smarter Use Of Art & Science Stretch Auto Budgets Further

The majority of adverts uploaded to Facebook aren’t created for Facebook as its priority. This is causing huge inefficiencies and poor performance for brands, many of whom are facing up to shrinking budgets. Tom Phillips (main photo) managing director at Connecting Plots shares lessons from 12 campaigns they optimised for auto brands… It’s no secret […]

Opinion

by B&T Magazine

B&T Magazine
Young Guns Take The Lead With The First PRIA University Mentoring Program In NSW
  • Media

Young Guns Take The Lead With The First PRIA University Mentoring Program In NSW

On Wednesday, 21 October 2020, the PR industry was bolstered by the launch of the Public Relations Institute of Australia’s (PRIA) first University Mentoring Program in New South Wales, adapting the traditional face-to-face program to a virtual format for the first time. In collaboration with the University of Technology Sydney (UTS), the PRIA NSW Young […]

JCDecaux Teams Up With MyPayNow To Serve Real-Time Data
  • Media

JCDecaux Teams Up With MyPayNow To Serve Real-Time Data

JCDecaux has developed a dynamic digital campaign with live timetable data where commuters can access their money from MyPayNow while waiting for the bus. In an exclusive nationwide Out-Of-Home campaign, JCDecaux’s SMARTFRAME digital assets are broadcasting bus arrival times, letting commuters know how far away their next bus is – and just how easy it […]

Rokt Secures $US80M Series D Investment Round
  • Technology

Rokt Secures $US80M Series D Investment Round

Rokt has today announced an investment of US$80M. The capital will help accelerate research & development and support the expansion of its client base into new verticals and geographies as Rokt continues to make e-commerce smarter, faster, and better. The funding round was led by Rokt’s largest institutional shareholder TDM Growth Partners , and supported […]

Nature Invests In New Team Members And Innovation
  • Marketing

Nature Invests In New Team Members And Innovation

Leading strategic insights consultancy Nature today announced it has hired several key new team members and restructured senior roles to increase its focus on innovation, including new technology and data sources.

PayPal And Buy From The Bush Launch New Marketplace
  • Media

PayPal And Buy From The Bush Launch New Marketplace

PayPal Australia and Buy From The Bush have joined forces to launch a new online marketplace to showcase rural Australian small businesses in time for Christmas. The expanded partnership aims to build stronger connections between bush businesses and Australians in cities and suburbs across the country. The new Buy From The Bush Marketplace is an […]

Wednesday TV Wrap: Gruen Takes A 200K Hit
  • Media

Wednesday TV Wrap: Gruen Takes A 200K Hit

Gruen plummets 200,000 viewers in just one week. However, that's not to say Highway Patrol went up a similar amount.

by B&T Magazine

B&T Magazine
Philippe Krakowsky Named New IPG CEO
  • Advertising
  • Media

Philippe Krakowsky Named New IPG CEO

Philippe "Crackers" Krakowsky named new IPG global CEO. However, says he only uses Crackers on less formal occasions.