Edmond Moutran is chairman and chief executive officer of Memac Ogilvy for the Middle East and North Africa. Considered one of the godfathers of the regional advertising industry, he sat down with Executive to discuss its future.
- Are there any drawbacks to falling under the jurisdiction of international conglomerates such as WPP?
One example would be the situation where the international agency wants to run a world-wide campaign for a brand that will not be coherent with our market. It hasn’t happened with Ogilvy, but it has happened before with other agencies I have worked with; somebody in London or New York says ‘this is a worldwide campaign,’ you look at it and know that this is not going to work in the Arab world. I would not allow my client to waste money on a campaign that is not designed to succeed in this region because it’s not going to work. I have had some very heated arguments with some of the biggest, toughest agencies in the world because they tried to impose campaigns on the Middle East.
So yes, there are disadvantages. If you’re looking after a client and you have a great relationship and they take on a similar client somewhere else in the world — a big one — and you have to drop this small client because your head office has taken on a client with similar interests and they require exclusivity, that is a drawback.
But, to have an international name is vital for two reasons. First, clients like it. Second, young people like it. Young people coming out of universities want to work for the Leo Burnetts, the JWTs, the BBDOs. They don’t want to work for a small agency that’s not associated with an international one — it’s not sexy.
- In the last 10 years we have seen an increased financial stake from the international names in the regional agencies. What do you say to people who don’t want to see you sell your shares?
This is a very interesting conversation — especially [given] the timing. I am on the verge of selling majority. It’s how you sell and it’s how involved you remain [that matters]. Today you have four giants in the world. Luckily for us, WPP is the biggest. That gives us clout. These companies will probably, within the next 10 years, own 90 percent of the [advertising] business in the world. These are huge companies that look after huge clients, which demand that these conglomerates have control. Why? The laws are changing. You have all sorts of regulations that these companies have to commit to the client that we will abide by worldwide. And then you come to a very important and vibrant place like the Middle East and these companies do not control the local companies. That is no longer acceptable to the international clients.
- So now is the right time?
It’s not a matter of selling at the right time. [The international agencies] are under tremendous pressure. It is my understanding of that that made me accept to discuss giving Ogilvy the majority… I must allow my friends that I have served for 37 years to benefit from our success because without them I wouldn’t have had the success. Life is give and take. You can’t just take, take, take and then when your international friends need you you’re not there to give. This is not the Arab way of doing things.
This is why all of us — my generation — have discussed and agreed to sell majority.
There will be a lot more control. A lot more changes [will be] coming up, because all of a sudden it will be exactly the way [the international agencies] would like it, whether I like it or not… I honestly don’t think a network without an international name can survive, not against all the internationals.
“[Four] companies will probably, within the next 10 years, own 90 percent of the [advertising] business in the world”
