Some advice for advertising agency WPP group plc
March 27, 2009
Here’s some real advice, and the problem is actually structural Sir Martin. Stop duplication of your advertising agency assets.. call yourself WPP group plc and not Ogilvy, Enfatico and 20 other agencies within walking distances of each other in the New York alone with the hopes that Dell will jump ship from WPP Enfatico and move to WPP Ogilvy because the names are different.
Right now your paying rent to hundreds of thousands of square feet that you are not using. Nor will you ever use. So to pay the rent you fired the people that were supposed to occupy that rented space. Get your one big office per city… and be done with it.. not 20 offices 2 feet from each other… all of them 3/4th empty. You have 10 year leases on 3 year contracts… this has to stop.
Seriously think about what you are doing… you have multiple brand names… each of them tarnished with layoffs that show signs of gross management incompetence. All in the same city…. paying multiple phone bills.. multiple internet bills.. multiple heating and cooling bills.. multiple everything… for what… so you can have a different sign over the door in the hopes that Dell will leave Enfatico and move to Oglivy?
For an Advertising Agency you seem not to know when you need to re-brand yourself.
What you didn’t think we had a camera in your office when you were planning on firing everyone?
Enfatico : We’re hurting like everyone else
February 26, 2009
Like every other company worldwide, the economic downturn has had an impact on our business and that of our client partner Dell. Despite our realignment, we believe in our business model, based on efficiency, integration and analytics. Our strategy puts us in a stronger position to maximize resources, eliminate duplication, deliver results and drive us through these tough financial times.
Beth@enfatico
That message was left on Brand Republic in response to George Parker’s post.
Sure they are hurting, so is everyone.. agreed. The problem is that we disagree with you regarding the maximizing of resources, eliminate duplication, and delivering results.
See here’s the problem, the entire concept of a “one client” ad agency such as Enfatico is the definition of duplication. Do you really need to pay another CEO when there are dozens in WPP’s network? Do you need a new media buying department when WPP group plc has dozens throughout their network? Do you need to rent out additional office space on 10 year leases when every other desk is empty across the network of WPP’s shops after mass layoffs?
What I am trying to state is that Enfatico is not maximizing resources or eliminating duplication… not by a long shot… in fact the vary nature of it’s existence is duplication and inefficient allocation of resources.
In terms of delivering results… exactly what does that mean? It took Enfatico nearly a year to push out anything even resembling an ad.
Please clarify your statement? Because honestly we are highly confused at it. The actions don’t match up with the words stated… in fact they run in the face of what was stated.
We’re not trying to “hammer” Enfatico.. in fact I have some deep corner of respect for the fact that the advertising agency has been publicly flogged across dozens of news outlets… print media.. blogs.. ect ect.. and yet you guys keep working on fixing your name.
But to state that Enfatico is about delivering results to the client… without duplication.. when the entire agency is a duplication of existing resources is that part that we can’t let go.
Enfatico has only 6 months left ?
February 26, 2009
George Parker noted on Brand Republic that Enfatico has only 6 months left before it collpases and is forced to roll into Y&R or another WPP shop. “My final forecast… Enfatico will be rolled into Grey or Y&R within six months… And the agency of the future will rapidly become the agency of the past.”
Media Bistro put together a piece that outlined many thoughts across the related news outlets (including tribble).
We however feel it has more than 6 months, yes there is a deadline to it… but it’s not 6 months… it’s exactly 642 days, 9 hours, 20 minutes, 26 seconds. … as official record keeper for Enfatico.. we have to point out that the contract was for 3 years…
Both Dell and WPP group plc are not going to break contract and admit failure like that. They will continue down this road… abit at a MUCH reduced spending rate until the contract is fulfilled then say “the market conditions have changed as to demand a new advertising model”.
That is how they are going to admit the failure of Enfatico… not by busting it up in 6 months and stating to the planet that Dell and WPP are clueless and have no idea what to do with their advertising budget.
They will fulfill their contract…at a fraction of what the budget was initially .. to save face… and nothing more.
You can’t make a big splash like they did when they announced this.. just to backtrack and say they made a stupid decision that cost hundreds of jobs… thousands of jobs if you consider the lost opportunity cost. Remember the mentality of these people… “we don’t make mistakes… everything is planned…budgeted and accounted for… we are in control”.
They were in control… and look where it got them.
I give it 642 days, 9 hours, 20 minutes, 26 seconds…. and not one second more.
Enfatico Layoffs Part II
February 25, 2009
As of yesterday there was about an 8% reduction of 1000 employees at the advertising agency, basically 80 people have been fired over the past 24 hours. Now we have been told by 3 senior level officials at the company that this is “once and done” and that no other layoffs are expected. The problem we have with this is that Dell informed Enfatico a month ago of this action. In fact Dell told Enfatico that they are cutting big parts of their advertising budget.. My friend at CBS / B|Net Jim Edwards called them out on this.
“Dell’s spending on SG&A has declined 12 percent over the last year. In Q3 it spent $1.6 billion. That was down from Q2 when it spent $1.8 billion. And that was down from Q1 when it spent $1.9 billion. It’s a pretty good bet that Dell’s Q4 earnings, out in a couple of days, will show another decline in the budget.”
So an 8% reduction in staff for a 12-20% reduction in spending (just wait after Q4 is released) doesn’t add up.. not by a long shot.
There’s no good answer to this… It could mean that Enfatico was overstaffed by huge numbers *on Dell’s tab* prior to the layoffs… or that this is just round 1 of *a continued layoff process*.
There is no other way to answer this.. either “we over billed Dell big time” or “we lied and more layoffs are on the way” .
The reason Enfatico can be “called out” is because it’s a single client ad agency, meaning just look at Dell’s financials to tell you what is going on at Enfatico. Numbers like this can (and normally are) hidden by other advertising agencies because they have other clients they can claim they are receiving funds from. Currently Enfatico has no such crutch.
So what’s the answer?
Enfatico Layoffs
February 24, 2009
We will not comment on this developing story until we get official word from the Advertising Agency.
We have been hearing “several .. to several dozen .. to hundreds” … we doubt the hundreds level… because that would mean effectively a shut down of the agency. No on has facts yet, we will get the official story shortly.
—-Edit This was just published on their blog —
To the Global Enfatico Team:
Today, we announced a proposal to restructure our team and decrease our workforce by
approximately 8 percent. This difficult decision is a direct result of the global recession and
pressures affecting virtually all aspects of the economy, especially the technology sector. Dell
has continued to proactively manage its operating expenses, including marketing expenditures,
to map to these new realities. In turn, we must streamline our business to adjust for these
unprecedented economic times.
While these proposed actions will undoubtedly apply new pressures on our young agency, it is
critical that we remain focused on teamwork, support and possibility. The best organizations
come together during times of difficulty and often emerge stronger when the storms pass. We
must stay unwaveringly committed to Dell and its business results — our unique partnership
will be a source of strength for both organizations.
We must also focus on building a successful business on behalf of WPP’s shareholders. For each
of us, this means maximizing our productivity, making practical choices and taking steps both
large and small to reduce costs. It also means an aggressive drive to win new clients and
diversify our portfolio. We have several new business pitches in the works, and we are hopeful
to announce some positive news on this front soon.
I know you will have questions about what this means for our agency. I encourage you to share
your questions and feedback with your manager, leadership team member, or directly with me.
I value your perspectives.
We all joined Enfatico with a sense of entrepreneurialism and opportunity –– with the
conviction that there is a better, more effective way to deliver strategic marketing services.
Despite the challenges ahead, I remain inspired by this vision and each of you who help bring it
to life on a daily basis. Thank you for your passion, commitment and great work.
All the best…
Torrence
11 Madison Avenue, 12th Floor, New York, NY 10010
HP fires Publicis moves $1B advertising account to Omnicom
February 23, 2009
Hewlett-Packard Co. moved its advertising contract to Omnicom Media Group, a deal worth $1 billion — in essence firing Publicis as their Advertising Agency of Record.
The Advertising Account, one of the most sizable in the industry is wrecking havoc among staffers at Publicis firms “We’re gonna get fired” was the tip we received (trust us we got hit up at least 20 times with people in the industry).
A wealth transfer of this size most likely lead to layoffs. However from what we have heard… Omnicom isn’t expecting to hire as many people as Publicis is expected to fire.
Story is developing… what we do know however is that HP isn’t demanding an Enfatico type relationship…
Agency Spy interviews Sir Martin Sorrell from WPP group plc
February 16, 2009
We can’t believe this! Matt from Agency Spy has interviewed the George Parker Coined Sir Martin Sorrell from WPP group plc / Poisoned Dwarf!! Amazing Stuff some tidbits from the interview that we wanted to point out.
Q: WPP’s integration is different than your average corporate integration, it’s not really horizontal or vertical.
A : What has become apparent in the last few years is that clients want access to all of a groups resources, not just those of one brand. Why have access to only 10,000 talented people, when you can have access to over 130,000. This started with accounts such as hsbc and vodafone and migrated to samsung, bank of america, p&g, ford, dell, j&j pharma and hp. Increasingly, the parent companies or holding companies are becoming the full service agencies of the 21st. Century. This is the major and unparalleled opportunity.
He mentioned Dell and by default Enfatico , the advertising agency that was created for Dell as their “own agency”. His actions are in complete incompatibility with his statements in the interview.
If Dell wanted WPP group plc to be their ad agency, then WPP group plc would be their ad agency… not Enfatico, a division of WPP. This is somewhat mind boggling.
It’s also worth noting that he didn’t mention Digital at all in the interview, as if it’s the last thing on his mind… though that may be the key to reversing it’s declining net-worth as a company.
What is this building? It’s where Enfatico signed a 10 year least for a 3 year contract.
Publicis launches it’s own Enfatico ad agency!
January 26, 2009
Adweek is running a story that Publicis has it’s own Enfatico… well those words came from Parker. Like the Enfatico model was so hot that Publicis had to copy it! That’s hot stuff. Because now we have another target to discuss in 673 days, 14 hours, 6 minutes, 12 seconds when the Enfatico contract with Dell is wiped out.
This is almost comical if it isn’t such a disaster in the making.
“Sources pegged the account’s size at approximately $1 billion in terms of annual global media expenditures. Most recently, various agencies handled the far-reaching assignment, including units of Havas’ Euro RSCG network.” … Parker noted “at least it wasn’t 800 agencies” or so.
This is such garbage, creating it’s own ad agency… they can expect Enfatico like results… the good news is that I suspect that Publicis won’t pull a WPP and sign 10 year leases for 3 year contracts.
6 Banned Advertising words for 2009
January 14, 2009
Here is a list of words that must be on the banned list for 2009
1 . Blue — yep, JWT in 2007 said they will be pushing “blue is the new green” for 2009. The last thing we need is spin on a spin on a spin saying the same thing.
2. Enfatico — this ad agency has been hit, abused and trashed all throughout the blogging world. This however might just turn out to be a non-existent word in 2009… and putting it on this list might be redundant.
3. Digital Advertising — Until someone comes up with a clear definition of it, it’s just a buzz word. As it stands now, when some BDA says they are doing the Digital marketing, they are saying flash sites, we are saying SEO and SMO… these are NOT the same thing. In fact they are almost mutually exclusive.
4. Recession Advertising — This is actually becoming some sort of discipline in the industry, the problem however is that we are not in a recession… we’re in a depression that is running into it’s second year and believe it or not people buy things and respond to pitches differently depending if times are hard, or times are horrific. For many, times are horrific, not hard.
5. Agency of Record — Ok we have this as our title, but that doesn’t mean it does not deserve to be on the banned list. Honestly there is no such thing anymore as “agency of record” for every company that has an “agency of record” you’ll find 20 other firms the same company has hired as well working independently from the “agency of record” on various advertising projects. In some cases we have found these firms consuming a greater portion of the budget than the “agency of record” … rendering the term meaningless.
6. ROI — this term has been banned from the BDA’s for nearly 20 years, but hey.. don’t let us stop you.
Steve Jobs has nothing on him, He’s been selling Apples since the 1930′s
I sell Apples
Parker : Wpp Group plc not paying employees
January 13, 2009
George Parker has a stunning article regarding WPP group plc not paying their employees. The report from Parker regarding Enfatico also notes that Dell Inc. has cut funding Enfatico, due to “breach of contract.”. This part has not yet been verified.
This part HAS been verified however.
George Noted: “Some have gone 5, 6 weeks without getting paid and when they finally get around to cutting a check, it’s for one week’ or two week’s pay, and then right back to another month or longer without a check.”
One of the issues is exactly “what is an employee”
“They are using many freelancers in the Austin office, and according to Texas State law, if you work on- site on company-owned equipment, you are an employee of that company”
Woah, that is ugly, really ugly. These people have worked their butts off to go for 6 weeks without pay, and it has reached the point where the police have been called in.
This part however has NOT been verified from Parker’s Blog:
“Dell has had their lawyers serve Enfatico with breach-of- contract papers, for failing to deliver on anything they claimed they could do.”
I think our countdown clock is going to need to be updated
Trust me, the mission is accomplished!
mission accomplished
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