Dubai: David Sable has never been quite taken up with all the fuss over “Big Data”. And never will be, by the sound of it.
When all of the accumulated data on various consumer behaviours is used to understand what makes someone “choose between a blue tie and a red one, it’s essentially selling a false promise,” said Sable, Global CEO of the advertising industry powerhouse Y&R, part of the WPP Group. “Big data may have its uses in health and other critical spaces — but when it comes to understanding consumer behaviour, it’s always better to pay more attention to “primal” data.
“And, by that, I mean focusing more on the individual and understanding what it is that motivates him to buy something.”
Apart from raining scepticism on big data — which the ad and marketing industry heralds as the next wave — Sable takes the contrarian route on another pet industry theme — digital.
The issue is when “digital is seen as everything, when clearly not everything is digital,” said Sable. “You have Amazon launching a bookstore and companies like Netflix are investing in content.
“There’s more attention being paid on logistics and making those deliveries to consumers. Amazon may have talked about using drones, but that’s played better on its share price. But the company has been investing in trucks and the people to drive them and do the deliveries.”
More volatility
Sable was in Dubai late last week for brainstorming sessions with the chiefs heading Y&R’s varied interests in the region. Could it be that the Gulf/Middle East be the sole territory where the global ad industry is looking at a deep recession in spending this year?
“Unfortunately, it’s a place where there’s more volatility than most,” said Sable, who has been Y&R CEO since 2011 and is one of the most widely followed writers by being a LinkedIn Influencer.
“While someone can predict with a reasonable degree of accuracy what can happen in next November’s US Presidential elections, no such thing can be made about this region. Iran is still a wild card and it’s not just the one market.
“Having said that, we have a commitment to this region and we will go about maximising whatever we can. The business we are in is a barometer of normality.
“If we are growing, it means the clients are definitely doing well.”
But loyalty in a client-agency relationship is looking a lot less tight these days. Last year saw some of the biggest global brands review their tie-ins dating back years by calling in fresh reviews of their accounts.
Mindset
Sable admits there is less of the loyalty factor around — “The notion has changed, definitely. There’s a lot more of the short term where clients are concerned, and that’s brought on by how access to a service can be got cheaper. It’s this mindset at work rather than clients asking how they can get something better out of their agency partnerships.
“My sense is that this review process started by global clients will slow down and they will go back to seeing value in long term relationships. At least, I hope so.”
Would the near to medium term have Y&R looking internally for growth? Would acquisitions take a back seat?
“WPP is publicly listed and thus committed to do what it takes to return profits to shareholders,” said Sable. “Y&R has always been very careful with acquisitions, but those we’ve made have been very successful. What WPP has done with its [purchases], is legendary. I believe we will continue to pursue both — organic growth and those driven by acquisitions.”
Factbox: Drawing a line in sand on the past
Last year, the Middle East advertising industry was shaken to its core when Joseph Ghossoub stepped down from his role as head of the Menacom, the holding company for Y&R’s interests in these markets. Shaken because of Ghossoub’s status as one of the ad industry’s regional pioneers and the sense that his association with Y&R was deemed impregnable.
David Sable, Global CEO of Y&R, declined to comment on what led up Ghossoub’s departure. “I don’t want to comment on history and I’ve known Joseph for more years that I can tell,” said Sable.
“We have brought in new management and focused very much on doing the right things. I, personally, am committed to this region.
“A true global company has no particular bias in the way it looks at each region it’s present. And unlike an international company that believes where it’s headquartered is the centre of the universe. The global way is the Y&R way.”
