Advertising Age spotlighted the spat between Publicis Groupe and WPP, whereby the France-based White holding company called out Cindy Rose, CEO of the UK-based single White operating company, for her commentary on major brands assigning global
business to White holding companies sans traditional pitches.
The Publicis
Groupe rebuttal felt like admansplaining—although
former Publicis Groupe
Chairman and CEO Maurice
Lévy would
undoubtedly
deny it.
The volleying
vomit displays hypocrisy and hubris.
After all,
holding companies were arguably designed to secure business in
unconventional—accent on con—style. The model allows for cronyism, Corporate
Cultural Collusion, and constructing
companies
for exclusive
client catering.
Publicis
Groupe and WPP—as well as all holding companies—have engaged in account
acquisition schemes leveraging privileged power plays. And there’s no sign of anyone
returning to traditional pitching.
The back-and-forth
bickering is bona fide bullshit.
Let the White
holding company without Prime
Redlining practices cast the first stone.
Publicis fires back at WPP CEO Cindy Rose over comments on agencies
winning business without traditional pitches
By Brian Bonilla
Publicis
Groupe is firing back at WPP CEO Cindy Rose over comments she made about
agencies winning business without traditional pitches with an unusually pointed
Instagram post that accuses its rival of insulting clients. It also takes a
swipe at WPP’s decision not to defend Coca-Cola’s North American media account.
In the “Dear
Cindy” post, addressed directly to Rose, Publicis challenges her suggestion
during WPP’s third-quarter earnings call last week that agencies winning
business without competitive pitches could be encouraging clients to bypass
proper due diligence. The French holding company, which has secured several
major accounts this year without formal reviews, argued in the post that
clients are subjecting agencies to extensive evaluations even when they forgo
traditional pitches.
“Although it
might make for a good headline, claiming we win on a ‘CEO handshake’ is an
insult to clients’ intelligence,” Publicis wrote. “We all know global companies
don’t hand over their data, media, and tech keys over a friendly espresso. It
takes months of hard testing by marketers, engineers, data architects, and
procurement teams.”
Rose made the
comments in question during WPP’s earnings call, after an analyst asked about
the company’s decision not to participate in Coca-Cola’s North American media
review and whether WPP was seeing competitors win assignments without pitching.
Rose described the trend as the “pitchless CEO handshake thing” and
acknowledged the growing costs associated with agency reviews, but warned
against dispensing with formal pitches.
“Nobody loves
pitching,” she said on the call. “The cost and burden of the process seems to
be increasing. But I think what’s really important, to me is that my clients
fully understand the implications of the decisions they’re making. These are
really high-stakes decisions with material business consequences, and they
deserve careful consideration. I don’t think we do ourselves any favor as an
industry of professionals by encouraging clients to bypass proper due
diligence.”
Earlier last
month, Publicis Chairman and CEO Arthur Sadoun spoke about the growing trend of
marketers handing over accounts without a formal pitch process. Publicis won
PepsiCo and Microsoft business this year without a pitch.
In the post,
Publicis Groupe also took a shot at WPP for declining to defend Coca-Cola’s
North American media business—which Omnicom eventually secured—while focusing
on pitching its global media business. In the WPP earnings call, Rose
explained: “We made a tough call between spending yet another six weeks
pitching for North America versus delivering against what we had already won.”
“You can’t be
a passionate defender of pitch culture and plead exhaustion in the same
breath,” Publicis wrote in response. “If an extra six-week run was enough to
sideline your teams, it’s not an endurance problem; it’s a capability one.”
WPP was not
immediately available to comment on the Publicis post.
Read
Publicis’s full letter below:
Dear Cindy,
We’ve had a
busy few days, as you may have seen, but of course we didn’t miss your earnings
call last week.
We’ve always
enjoyed a bit of industry back and forth, à la Maurice and Martin, so we
couldn’t let your theory on how we win new business slide without a word.
Although it
might make for a good headline, claiming we win on a “CEO handshake” is an
insult to clients’ intelligence.
We all know
global companies don’t hand over their data, media, and tech keys over a
friendly espresso. It takes months of hard testing by marketers, engineers,
data architects, and procurement teams. So let’s be really clear here: skipping
an old-school pitch circus isn’t skipping due diligence. It’s clients knowing
what they need and testing us to the limit.
Having worked
at one of the companies that chose us this year, you know its leaders really
well, and your comments sell them remarkably short. They would never have
entrusted us with a task of this magnitude on a wink and a handshake.
It’s as
believable as saying your troops were too tired to try and win back your
biggest client’s biggest market. You can’t be a passionate defender of pitch
culture and plead exhaustion in the same breath. If an extra six-week run was
enough to sideline your teams, it’s not an endurance problem; it’s a capability
one.
Take it from
us, investing in tech and talent really helps on that front.
Because in
the real world, enterprise partners aren’t chosen after a cosy tête-à-tête or
legacy slide decks. They are chosen on connected identity and media solutions,
intelligent creativity, and AI engines that drive business.
Don’t get us
wrong. We didn’t expect a basket of muffins or a thank-you note for clearing
the path to your global renewal. We understand the pressure of building a
narrative for the financial markets and the urge to celebrate a win – a victory
lap is fun even when you’re the only one who ran. But it shouldn’t require
denigrating our clients, our people, and all of our efforts.
Our industry
does extraordinary work. Let’s give it the credit it deserves.
Very best,
Your friends
at Publicis