Also read this week's Jack Myers Media Business Report (subscribers-only): The Gospel According to Sir Martin Sorrell: Content Ownership Is King
While he says the shift to mobility is the media and advertising industry's most disruptive influence, and that "advertising addressability changes the nature of what we do," WPP Chairman Sir Martin Sorrell has outlined ten issues that are having the greatest impact on business globally and that require the attention not only of his organization but also require the focus of clients and media companies. As the world's largest advertising agency and consumer insights organization with operations in 107 countries, Sir Martin's priorities are worthy of attention.
Sir Martin Sorrell's Priorities for Global Media, Agencies and Clients:
1. Global Shifts in economic, political, social and cultural power.
2. Continuing Auto Production Capacity and the under-capacity of people/customers. While U.S. auto capacity has declined, the capacity in China and India has expanded. Over capacity of supply and under capacity in the supply of people makes the role of agencies and marketing even more important.
3. The Web. The reason the Consumer Electronics Show is important is that the tech companies are now media owners. The Web disintermediates legacy players and is a more attractive destination for talent.
4. Internal Communications. Communicating strategic and structural change is an internal challenge for organizations as much as -- or more than -- an external challenge.
5. Retail Power. Major retailers are gaining power, especially when there is little inflation. Retail companies put pressure on manufacturers, pushing companies like P&G into direct consumer marketing through websites.
6. Global Centralization. As companies expand and gain global influence, they are integrating their organizations at the center.
7. Procurement and rise of the finance function puts more emphasis on cost management.
8. Governments, as both regulators and as clients.
9. Corporate social responsibility. Doing good is good business.
10. Content. We have to think about content in the context of how business is fundamentally changing. Consumers have to pay for content. There is not enough advertising to finance the business models of all the new media. There needs to be more consolidation for the health and development of the media business. State subsidies have to play a greater role to maintain professional journalism.
Jack Myers can be reached at Jack@mediadvisorygroup.com. JackMyersThinkTank is free and underwritten, as part of MediaBizBloggers.com, by subscriptions to Jack Myers Media Business Report (www.jackmyers.com). Subscribe free to all MediaBizBloggers reports at www.MediaBizBloggers. For Jack Myers Media Business Report subscription information visit www.myersreport.com or contact Jack Myers at Jack@mediadvisorygroup.com. Jack Myers and Media Advisory Group provide details on all underwriters and companies in which we have an investment at www.jackmyers.com. This commentary was originally published at www.jackmyers.com.
Follow Jack Myers on Twitter: www.twitter.com/MyersBizNet