Will Sorrell 2.0 be as successful as the first? Here's all you need to know

WPP founder may form a coalition of digital and ad tech firms, say experts

Martin Sorrell, advertising's best-known chief executive, sprung a surprise last week announcing he was buying a London-listed medical products company called Derriston Capital, which would act as a vehicle for his future investments. 

While Derriston would be renamed S4 Capital, the model was reminiscent of what Sorrell had done in the past. Three decades ago, Sorrell had acquired a wire shopping basketmaker called WPP, using it to buy some of the most storied advertising brands in the world. These included names such as J Walter Thompson, Ogilvy, Young & Rubicam and Grey Advertising.

Sorrell, 73, is also credited for creating media specialists such as GroupM, a trend that saw most other rival groups follow suit, bringing all these entities together under his holding company umbrella. He also built strong verticals within WPP specialising in public relations, market research, shopper marketing and below-the-line services. 

Though the traditional ad agency model is now under threat from new-age companies such as Facebook, Google and Twitter, ad industry veterans Business Standard spoke to said Sorrell might form a coalition of digital and ad tech companies as he aimed to make a mark after WPP. "Sorrell may look at the advertising world differently," said MG Parameswaran, founder, brand-building.com, who was earlier executive director and chief executive officer of FCBUlka, Mumbai. "The holding company model that he will now build may look at current hotspots such as digital, ad tech and consulting," he said.

While acquisitions are something that Sorrell could consider aggressively as he looks to build his new-age holding company quickly, one agency that could be at the back of his mind throughout is RG/A, says KV Sridhar, founder and chief creative officer, HyperCollective.

Part of the Interpublic Group, RG/A, headquartered in New York, is positioned as a new-age digital company that uses technology and creativity to provide solutions to clients. Sridhar said RG/A in many respects was considered the archetype of how ad agencies today should be, with advertising groups tracking it closely in general. In the recent years, RG/A has also been a big winner at award shows and counts firms such as Verizon, Walmart, Samsung, Nike, Mercedes-Benz and Lego as its clients.  

"Publicis Groupe, for instance, acquired digital and tech firm Sapient a few years ago, which was part of its drive to leap into the future," Sridhar said. "Besides its core strengths, Sapient also had a significant presence in India, which made it all the more relevant for Publicis to acquire it," Sridhar, who was part of SapientNitro, the marketing services arm of Sapient, said.

While at WPP, Sorrell had indicated that the new ad agency model would have to be nimbler, this structure, said experts, would be fully unveiled now - in his second innings.

Sorrell indicated last week that he was talking to companies that had a digital focus without spelling out details, saying discussions were in preliminary stages. He also said that India would be critical to his future plans, since he remained optimistic about its growth prospects.   

"Having known Martin for so long, I think he would do a great job in his second innings. He has a great business mind and knows what he wants," said Piyush Pandey, executive chairman and creative director, South Asia, Ogilvy & Mather India. 

WPP, Pandey said, had no threat from Sorrell and would have to contend with him like any other agency groups. Sorrell also has a 1.4 per cent stake in WPP preventing him from destabilising it too much, sector experts said.

Sam Balsara, founder, chairman and managing director, Madison World, said, "While it is difficult most of the times to replicate past magic, with Martin nothing is impossible."

KNOW THE MAN: MARTIN SORRELL

Born: 14 February, 1945

Age: 73

• Best-known: As the chief executive of WPP; was also the finance director at London-based ad agency Saatchi & Saatchi before acquiring WPP in 1985; was regarded as the “third brother” due to his closeness to ad gurus Maurice and Charles Saatchi
• Education: Has an economics degree from Christ’s College, Cambridge and an MBA from Harvard University
• Legacy: Sorrell’s lasting legacy will be the conglomerate culture he brought to advertising. Big became bigger during his tenure and WPP emerged the number one advertising and marketing communications group in the world