Future of Marketing Briefing: The holdcos long, awkward courtship of the C-suite
What holdcos risk when they go over the CMO’s head.
Publicis Groupe CEO Arthur Sadoun has been directly pitching to CEOs, according to recent reports. The industry's reaction has been mixed, with some praising his leadership and others questioning the validity of his approach. Critics argue that few CEOs actively seek out ad holding companies to transform their businesses. Some even view these pitches as bravado attempting to mask a history of unsuccessful pitches.
The identity crisis faced by holding companies (holdcos) has persisted for nearly two decades. The roots of this crisis can be traced back to around 2008 when clients began reducing their ad budgets as economies wobbled. In response, holdcos sought ways to infiltrate the boardroom. Some succeeded, like Sir Martin Sorrel at WPP and Mark Read at Publicis, who leveraged their access to CEOs.
Maurice Levy, Sorrel's rival, employed similar tactics at Publicis before Sadoun took the helm. At Omnicom, John Wren achieved a comparable feat, which likely contributed to the group's enduring client base. Despite these successes, these relationships often originated from tie-ins with the chief marketing officer (CMO) and holdcos, rather than the broader C-suite.
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