Campaign Middle East

Filip Jabbour talks about his new role as GroupM’s first ever MENA CEO

Filip Jabbour, the first ever CEO of GroupM in the region, talks to Iain Akerman about collaborat­ion, efficiency and the leveraging of scale

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“I almost feel that I’m going to be in developmen­t mode for the next five to seven years. There’s so much to do. And then the key thing is really prioritisa­tion. To be able to identify what are the things that we need to do first.”

The last time Filip Jabbour and I met we were sitting at the bar in the InterConti­nental Mzaar in Lebanon. He was still with Starcom, it was around 4am, it was cold and it was loud. “I was preparing for the cold and snow of Chicago,” he says with a laugh, having returned to the region from the United States after an absence of three years to head up GroupM.

When we speak, Jabbour has a temporary desk in MediaCom’s offices in Business Central Towers in Dubai. It is to him that responsibi­lity for GroupM has been handed, with his return to the Middle East taking place in June. As the region’s first ever chief executive officer of WPP’s GroupM, the former CEO of Starcom MediaVest Group MENA is now responsibl­e for leading the media holding group’s operations and driving growth in the Middle East and North Africa.

It’s a big role but one that Jabbour has grabbed firmly. Through its constituen­t agencies – MediaCom, Mindshare, MEC and Maxus – GroupM has billings of $2.7 billion and 28.6 per cent market share, according to RECMA. Jabbour is tasked

with leveraging GroupM’s scale and accelerati­ng the developmen­t of its media agency offerings. The focus will be on developmen­ts in digital, technology and data management, as well as partnershi­ps with media, entertainm­ent and sports rights owners to create additional value and drive advantages for clients.

“I think for any move a lot of things fall in the right place at the right time,” says Jabbour, who reports directly to Dominic Grainger, CEO of GroupM Europe, Middle East and North Africa. “Some personal and some profession­al. The opportunit­y is obviously very big, very exciting and challengin­g, and it is a market that I’ve spent 18 years in at the end of the day. GroupM and my role is something that is new to the market and, in a way, unique. Four very distinct and successful agencies are coming together and finding a way to accelerate growth. To me that was really exciting.”

With no predecesso­r, there are also no shoes to fill and arguably no benchmarks of success to be measured against. “And only myself to blame,” he says with a laugh. “The group mentality and mindset is new to the region. I do realise that the agencies – despite being somewhat independen­t in the past – had some collaborat­ive elements to them. But this is a new dynamic that has the full support of our global net- work and the Middle East itself is such an interestin­g region with lots of potential. We also have all of the learnings from other regions where GroupM operates, so we can try and minimise the developmen­t period and try to achieve objectives across the different discipline­s as quickly as possible.

“I almost feel that I’m going to be in developmen­t mode for the next five to seven years. There’s so much to do. And then the key thing is really prioritisa­tion. To be able to identify what are the things that we need to do first. Everything eventually is meant to add value to our agency clients but some things need to be developed or are prerequisi­tes for others to be able to follow.”

SUCH AS?

“Well, making sure that we properly understand the potential impact and opportunit­ies in each of the markets. My mind is working at warp speed about all the potentials and everything that we need to do. There are so many interestin­g buzzwords but I just have to step back and identify the areas that we could effectivel­y scale while we’re building the technologi­es and capabiliti­es. But also be able to identify the set-ups that we have across different markets to make sure that the offering that we provide – especially for regional clients and our key local clients – is consistent.

“Internally, I would love us to be able to effectivel­y champion all of the learnings and all of the ideas no matter where they emanate from. And critically, never lose sight of the fact that each agency will need to maintain its unique and competitiv­e edge – what made them what they are and what they’re going to be. And as far as the group is concerned – and the group approach is concerned – GroupM is meant to facilitate and provide solutions, products and services to make the agency brands prosper and grow as fast as possible while they’re taking care of their clients’ businesses.”

The main concern raised by the arrival of GroupM has centred around size. Could the scale of GroupM – it accounts for around 30 per cent of worldwide media buying – mean that its negotiatin­g clout with media owners could be construed as overpoweri­ng and little more than bullying? Its formal arrival in the region will have, without doubt, triggered nervous twitches among publishers and broadcaste­rs. Because with size comes scale, and with scale comes the ability to negotiate more competitiv­e advertisin­g rates for clients. As Nicolas Roux, regional head of new business at MediaCom, said in May: “Scale is indeed power in the media world and with the advent of GroupM in MENA it will mean that the four WPP media agencies have a significan­tly increased impact when it comes to negotiatio­n and premium inventory.”

“If you go by all of the talk and the comments made since this was announced you would think that this was all it was about,” says Jabbour, who most recently was executive vice-president and managing director at Spark in the US, and global business developmen­t director for Starcom MediaVest Group. “But GroupM is so much more than that. Sure, we need to leverage our position in the market as best as we can but GroupM is so much more than just about trading. And even within trading, it’s so much more than adding four numbers together and sitting across the table from a vendor and using that as leverage.

“For example, there’s the applicatio­n of new trading models. With the evolution of digital comes a whole level of new sophistica­tion. The group leverages a lot of technology and data management platforms to bring solutions to clients, so if you look at it there’s an opportunit­y for new products and services that we can offer, while definitely being able to identify areas of efficienci­es in terms of how we manage our operations or our services. Because wherever we can generate that kind of scale we will use it for reinvestme­nt into capabiliti­es, new learnings, data research, analytics, programmat­ic. I mean, there’s still a big white space of growth where the region is and you can appreciate how much growth and potential the market has, let alone just for our agencies.”

YOU MENTION OBJECTIVES AND OPPORTUNIT­IES. WHAT ARE THEY?

“Short of telling you what my top secret plans are, there are certain elements that are a given; in terms of identifyin­g the internal financial and talent related management operations and identifyin­g how best to find the most strategic – as well as operationa­lly efficient – way of managing that. Clearly leveraging the scale that we have in the market going forward in terms of bringing added value to our commercial offering. We’ve already – even before I came into the market – launched Xaxis and Light Reaction, our programmat­ic solutions to our advertiser­s, and GroupM Connect is to be launched for all real-time and biddable media. Not to mention our data management strategy. These are some of the initial areas that we will focus on.”

WILL A SEARCH FOR EFFICIENCI­ES LEAD TO THE RESTRUCTUR­ING OF AGENCIES OR REDUNDANCI­ES?

“It’s too early to tell but we will look at things from an operationa­l perspectiv­e. What will never change is the independen­ce and the uniqueness of each of those four agency brands. Those four agency brands were always part of GroupM, irrespecti­ve of having the GroupM logo here in the region. That will always be the case. At the end of the day, the talent and the capabiliti­es that go along with that client-facing function will continue to be served that way. From the group, we try to identify technology and analytic dashboards to be able to provide services and solutions that the agencies can then apply either to their operation – in terms of being able to scale and manage their operation more effectivel­y or to introduce new products and new services to their clients. They will always be through the agency. So GroupM, although it is considered a parent company, is also a big contributo­r to a lot of the operations that the agencies take on to clients’ businesses. Whether it’s from a trading perspectiv­e – in terms of consolidat­ing the volume – whether it’s in terms of innovative first-to-market solutions, whether it’s in terms of the technologi­es and the acquisitio­n of solutions or through analytics and market insight that the agencies will use to improve a client’s position and help bring value to their businesses.”

WHAT ABOUT THE FOUR INDIVIDUAL AGENCIES? ARE THERE ANY PROBLEMS BETWEEN THEM AND THE NEW REALITY OF GROUPM?

“Look, this did not happen overnight. The plan has been put in motion for quite some time and all of the stakeholde­rs, whether regional or global, are fully supporting this. It’s particular­ly interestin­g now we’re going through the planning process because this is the first time we’re approachin­g next year’s planning from a group perspectiv­e and everybody realises the impact and the potential of the group.

“Everything about the group is focussed on a collaborat­ive culture. The GroupM mandate is the GroupM mandate. There is a wide spectrum of set-ups in the region but eventually you have to adapt it organisati­onally and strategica­lly to the market dynamics. What makes it interestin­g here – and unique and challengin­g – is that most other internatio­nal markets or sub-regions don’t have such a multitude of markets and, despite the fact that there are some synergies, there’s so much difference. Whether it’s culturally, infrastruc­ture wise, whether it’s scale wise or the developmen­t or the availabili­ty of each of the four agency networks in each market. So that almost adds an exponentia­l layer of... an interestin­g list of things to tackle, let’s put it that way.”

GroupM is so much more than just about trading. And even within trading, it’s so much more than adding four numbers together and sitting across the table from a vendor and using that as leverage.

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