Sir Martin Sorrell, WPP chief executive, called conditions “a relatively low growth world” last year, along with said which consultancies were addressing clients’ concerns about cost. “Very few CEOs will resist the suggestion which they may be overspending along with the promise of an audit or review which will only cost a proportion of any cost savings,” WPP said in an online statement at the time.
Publicis, meanwhile, bought digital along with tech company Sapient for $3.7 billion in 2015, along with has since reorganized itself “around the challenges our clients our facing,” according to Publicis.Sapient EMEA along with APAC CEO Nigel Vaz, speaking to CNBC last October. Digital transformation is usually right now a firm focus for CEO clients who previously might only have needed a website, Vaz said.
“right now you can spend a day with them because they are focused. The fastest way to drive cost out of the business is usually embracing digital technology. The fastest way to drive growth is usually leveraging digital technology,” he said.
Omnicom’s revenue decreased 1.9 percent inside the quarter ending September 30, according to its latest results, along with Interpublic reported a 1 percent decline in revenue inside the third quarter of 2017.
Cuts by consumer packaged goods companies are also affecting the advertising world. Last week, Procter along with Gamble reported $750 million savings in ad agency along with production costs along with Diageo said which was saving money across media buying, live experience marketing along with point of sale.