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Sir Martin Sorrell from WPP: We must encourage companies to recover a long-term view of the world
Manuela Walfenzao| 11 de enero de 2016
Sir Martin Sorrell, CEO of WPP, shared his vision regarding priorities that the advertising industry must have during 2016. “Number one on the agenda is encouraging companies to take a long-term, less risk-averse view of the world, predicated on the fundamental truth that marketing is an investment not a cost” he stated. For Sorrell, it is understandable that clients have a short term vision due to low GDP growth, little or no inflation, little or no pricing power, and therefore a focus on cost. The appearance of brands that have changed the way traditional business is handled -such as AirBnB and Uber, also has a strong impact on these companies. “It’s clear from BrandZ analysis that investing in brands works. In the last 10 years, a measurement of the strongest brands from the BrandZ Top 100 as a stock portfolio shows their share price has risen over three times more than the MSCI World Index and almost two thirds more than the S&P500” said Sorrell. “Encouragingly, some institutional investors, such as BlackRock, are tiring of the corporate focus on short-term cost cutting. We support the Focusing Capital on the Long Term Initiative led by Dow Chemicals, McKinsey and others, which highlights the importance of long-term growth and investment.”
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