Executive talked with Ramzi Raad, group chairman and chief executive officer of TBWA Raad, about stake holding by multinational groups, succession and new creative hubs.
- What does the acquisition by global agencies mean for Lebanese advertising entrepreneurs in this region?
When I went into partnership with TBWA in 2000 they were very clear and said ‘we want to run agencies that we have majority stake in. If we don’t agree to that at this stage, it has to be gradual.’ [Eventually], Omnicom [majority owners of TBWA] wants full ownership wherever they go.
They allow you the privilege of having majority at the beginning but then the roles are reversed because it is part of their global policy. They own the work that they want you to develop. It is their brand that you are operating under and so on. It’s a fair deal at the end of the day.
- What is the trade-off for you? What is the down and upside of giving up ownership?
It is a global game and these are the rules… Multinationals now own the whole communications industry. It is not only advertising — it is PR, relationship marketing, everything. You have options to remain independent. Independents are brilliant and growing but even the independents are catching a price and they are happy to sell.
- What is in it for you?
It all depends on your age and what your aspirations in life are. From the beginning I said, even if I sell, by the totality of my stay I would like to have reached an active role in the management of TBWA Global and I keep striving toward that goal. If I don’t [achieve] it myself, I hope that one of my people will be able to do that. Because I know that we have enough talent, I know that we can play a valuable, active role.
- As multinationals are increasing their stakes in the Middle East’s advertising industry, what will happen to its founders?
We did not see any of the multinationals send in an expat to manage a Middle Eastern group in the top position yet. Sooner or later this might happen. I answer the question in relation to myself. I know that I sooner or later will have to retire to let the younger generation take over. They need to do that. [However,] I don’t want to rest at this stage.
- Does it keep you young to be in the fast-changing industry of advertising?
Surely. My wealth is not the success story; it is the campaigns that I have done. I love to talk about them and overhear the clients talking about all the successes and the campaigns that [I] have done.
- [The company’s new motto is ‘Disruption’.] How good is disruption and how disruptive is good?
It has worked. We adapted that concept here and tried to make a difference in the Middle East. We are being successful in that. You can’t say that all you need is disruption but we are very convinced that disruption is helping. You can’t be rigid in a world of communication like ours, where everything is changing, you have to continue changing.
- How will your new creative hub in Abu Dhabi fit with this?
Four years ago, the government of Abu Dhabi made a commitment that it wanted to modernize and started launching a lot of projects. Those projects needed support. We had Etihad [Airlines] as a client; they were a door opener to the government departments and we picked up a lot of business. With a surge in business in Abu Dhabi, we felt that [it] deserves to have high-caliber creative talent. The fact that we had super-creative directors managing the Etihad business for the past four or five years, proved that it is worth the investment.
“My wealth is not the success story; it is the campaigns that I have done”
