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Category: Advertising

Internet giants’ growing control of ad spend brought a sense of change to Cannes Lions festival

Cannes rolled out the red carpet this week but the people walking up the staircase to the cinemas in the Palais des Festivals on the seafront were not movie stars. Instead they were among the thousands of individuals attending the Cannes Lions advertising festival, an event that can match its film equivalent for decadence even if its big names are unknown to the general public.

But this year the Mad Men of the global advertising industry were worried, aware that change is under way. As a result the week-long event at times felt like the collapse of the old advertising empire, with Facebook and Google playing the role of the barbarians who have broken into the city while the old guard continue to party.

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Advertising tycoon says he was treated unfairly and blames a high-level leak for his exit

Sir Martin Sorrell has used his first public appearance since being forced to leave the advertising group WPP to criticise the board of his former company, dismiss suggestions that he paid for a sex worker on company expenses, and complain he was not treated fairly.

“What has happened could have come out significantly differently,” he said. “I’ll just leave it at that. There were other courses of action which were open to the company, which they did not take.”

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Facebook now lets users file complaints against businesses if they had a bad experience after purchasing a product through an advertisement on the platform.

Shareholders stage pay revolt but Roberto Quarta says former boss had to be treated as retired

The chair of WPP has defended the handling of Sir Martin Sorrell’s exit and insisted the world’s largest advertising group was powerless to stop its founder from walking away with share bonuses worth up to £20m.

Roberto Quarta told shareholders at the group’s annual general meeting on Wednesday there was “no basis” to cancel Sorrell’s share awards because the company had no proof of misconduct – despite a series of allegations against the former chief executive.

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Martin Sorrell’s ‘at will’ contract and a missing no-compete clause are hard to excuse

WPP shareholders should prepare to feel frustrated. Wednesday’s annual meeting will also be a convention of lawyers, on hand to ensure chairman Roberto Quarta doesn’t utter a morsel of information about the findings of the board’s investigation into allegations of personal misconduct against former chief executive Sir Martin Sorrell. But let’s hope Quarta, amid his “no comment” routine, can bring himself to admit that “at will” service contracts for founding directors of public companies are a terrible idea and that WPP’s board made a bad error in granting one to Sorrell in 2008.

For years, the loose arrangement was cited to placate investors during the annual rows over Sorrell’s pay. Sorrell himself made the point in 2012 when he wrote in the FT that he made no apology for acting as an owner, declaring: “I have no contract with the company, am “at will” and can be dismissed or leave instantly without compensation or restriction.”

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Amid talk of sex workers, a culture of fear and bullying, Sorrell sticks to denials

Several allegations have emerged about Sir Martin Sorrell in the wake of his resignation as chief executive of advertising giant WPP, which was investigating claims of personal misconduct. A company probe is understood to have found no evidence that company money was misused.

As reports have emerged about the circumstances surrounding Sorrell’s exit, allegations about his conduct have piled up. Sorrell strenuously denies any wrongdoing.

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Mark Read tipped to succeed Sir Martin Sorrell, who quit amid allegations of misconduct

The man tipped to succeed Sir Martin Sorrell, who resigned as chief executive of the advertising group WPP amid allegations of personal misconduct, has urged staff to remember the company’s “values” and launched an internal review.

On the eve of the company’s annual meeting, at which investors are expected to question directors about Sorrell’s departure, WPP’s new joint chief operating officer, Mark Read, emailed staff reminding them that they should “expect to be treated with respect”.

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Advertising boss denies inappropriate use of funds

Sir Martin Sorrell’s departure from the pinnacle of the advertising industry was triggered by staff claims that he had bullied junior employees, plus allegations the tycoon was spotted entering an address in a London red-light district.

The account, which was published by the Financial Times on Monday, came a day after Sorrell “strenuously” denied paying for a sex worker using funds from WPP, the company he founded and developed into the world’s largest advertising group.

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The legacy (and pay) of the former ad agency boss will loom large at the firm’s AGM this week

There seems to be a sudden trend for ageing rockers to announce farewell tours at which they generously allow their fans to grant them one final payday in return for knocking out the greatest hits.

Elton John and Paul Simon have unveiled such spectacles, and this week we get the City equivalent, as we all hum along to the familiar lyrics sung about the Square Mile’s most notable septuagenarian showman.

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Brands seize chance to push products after western firms pull out over bribery scandal

Football fans heading to the World Cup this summer are going to get an education in Chinese TVs, mobile phones, electric scooters and Mongolian dairy products.

As western companies, including Sony, Johnson & Johnson and BP’s Castrol, have pulled out of sponsoring the tournament after the Fifa bribery and corruption scandal, Chinese firms have secured an unprecedented presence at Russia 2018.

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The backers go for calculated gamble in signing away their normal voting rights

Sir Martin Sorrell never seemed keen on giving other shareholders in WPP a say on anything, especially when his own pay was in the spotlight. Even so, his solution to the problem of co-owners having opinions is severe: Sorrell’s complete control of S4 Capital, his new quoted venture, will be cemented via his sole ownership of a “B” share with the power to silence all formal dissent. As the document detailing the reverse takeover of cash shell Derriston puts it, the “B” share will give Sorrell the right to “ensure no shareholder resolutions are proposed (save as required by law) or passed without his consent”.

That will make the annual meetings dull affairs and, in Sorrell’s shoes, you can understand why he would prefer things that way. In his many “I am an owner” outbursts at WPP, he always seemed to resent the fact that his stake was diluted down from 15% at launch in 1985 to 2% in the later years. At S4 he will start with 75% of the regular class of share but, if the acquisitions roll in as intended, he can be diluted to minority status but still retain absolute authority. The “B” share arrangement will last for 14 years, or until he retires or dies.

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Campaigners use alternative platforms to promote message on news sites and games

Anti-abortion campaigners have sidestepped Google’s ban on online adverts relating to the referendum in Ireland on Friday, so as to promote their message on popular websites.

This May the tech company banned paid messages relating to the referendum from appearing on its services, which dominates many aspects of online advertising.

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Crackdown by industry watchdog aims to get rid of ads that promote offensive stereotypes

Advertisements that perpetuate sexist stereotypes, from men being shown as useless at changing nappies to women being unable to park a car, would be banned under a new rule being considered by the industry watchdog.

The crackdown by the Committee of Advertising Practice (Cap), which writes the codes that all UK advertisers have to follow, aims to rid television, radio, billboards, posters, newspapers and magazines of ads that promote harmful or offensive stereotypes. The new rule, which follows 10 months of evaluation by the ad watchdog, will be subject to a final public consultation before being put into practice.

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Virgin Money’s deal with CYBG makes commercial logic but it won’t reshape the banking sector

So much for the post-crisis idea that the UK’s big four banks would be knocked off their comfortable perches by a combination of new technology and “challenger” banks. A decade on, it’s hard to detect a meaningful shift in market shares. Lloyds Banking Group, the undisputed leader in the UK, isn’t noticeably weaker for being shorn of TSB and last year got bigger in credit cards, the only corner in which it was underweight, by buying MBNA’s operation in the UK.

It’s little wonder, then, that challengers are concluding they won’t get far on their own. CYBG, which isn’t a true new-breed challenger anyway since Clydesdale Bank was born in Glasgow in 1838 and Yorkshire Bank in Halifax in 1859, wants to merge with Virgin Money to “create the UK’s leading challenger bank” to offer “a genuine alternative to the large incumbent banks”.

Related: Richard Branson set for large profit if CYBG and Virgin Money merge

Takeda

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Virgin Money’s deal with CYBG makes commercial logic but it won’t reshape the banking sector

So much for the post-crisis idea that the UK’s big four banks would be knocked off their comfortable perches by a combination of new technology and “challenger” banks. A decade on, it’s hard to detect a meaningful shift in market shares. Lloyds Banking Group, the undisputed leader in the UK, isn’t noticeably weaker for being shorn of TSB and last year got bigger in credit cards, the only corner in which it was underweight, by buying MBNA’s operation in the UK.

It’s little wonder, then, that challengers are concluding they won’t get far on their own. CYBG, which isn’t a true new-breed challenger anyway since Clydesdale Bank was born in Glasgow in 1838 and Yorkshire Bank in Halifax in 1859, wants to merge with Virgin Money to “create the UK’s leading challenger bank” to offer “a genuine alternative to the large incumbent banks”.

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