Riyadh is set to become the advertising capital of the Middle East, according to Sir Martin Sorrell, the veteran businessman who set up the world’s largest agency.
Kyiv. Ukraine. Ukraine Gate – June 02, 2021 – Entrepreneurs
Speaking on the sidelines of the Tourism Revitalization Summit held last week in the Saudi capital, Sorel said: “Originally I think you might say that the heart of the advertising marketing services industry is Beirut, then it moved to Dubai, and now it is moving to Riyadh.”
Since Sorel left WPP, the company he founded in 1985 that has become the world’s largest advertising and communications group, S4 Capital has made S4 Capital the fastest growing digital advertising company in the sector.
“We are clearly looking at the Middle East as a whole, with Saudi Arabia being a major part, and I think things have changed over the years that I’ve been in the industry,” he said.
Sorrell added that recent moves by the kingdom to insist that companies wishing to do business with government agencies should have a regional headquarters in Riyadh would be effective.
“It might be controversial, but you know if those are the rules you probably have to respond to because, in the context of the Middle East, Saudi Arabia is obviously very important, and on a global basis as well,” he went on.
He indicated that S4 Capital may join the rush to set up in Riyadh. “Well, it depends on how things develop, but we put a lot of effort into our process here, and Saudi Arabia is important in the context of the overall process,” he said.
Sorel’s new business has attracted clients in Saudi Arabia, including work on two major mega-projects, NEOM and Qiddiya Entertainment City. He said that the scope of the Kingdom’s ambitions in the transformation strategy of Vision 2030 is consistent with the scope of his ambitions in the field of advertising.
“They are very ambitious goals with a lot of pressure to perform and reach those goals, so I think a very ambitious program. Can it be achieved? Well, you know, I think we set “very big goals” in S4, so I agree with setting big goals. “
He saw great opportunities in tourism in Saudi Arabia. “I think tourism is just getting started. Listening to the minister, Ahmed Al-Khatib, you think about Saudi tourism, and you realize that it started with almost a clean sheet of paper, as we did in S4 three years ago. So, you are not hindered by albatrosses from analog or historical structures or approaches.
Sorrell said that the biggest challenge Saudi Arabia faced in its tourism plans was the restrictions on human capital, with the need to educate, train and develop the local workforce to manage the strategy.
“You really have to be very noisy in this business, and Saudi Arabia in terms of tourism can be very noisy. With NEOM you have the benefits of the ancient culture, the crossing point of the three religions, the proximity to the East and the West. It has its own traditions, culture, sea, mountains, and skiing in Saudi Arabia. As a result, big changes will happen, but the issue is human capital.
It is worth noting that most of S4 Capital’s current business is located in America, but Sorel has significant expansion plans in Asia, the Middle East, and Africa. He estimated that digital advertising now accounts for half of the global market and that this will rise to 70 percent over the next five years.
Sorrell recently upgraded S4 Capital’s earnings forecast after the “massive” client win, and now expects 30 percent earnings growth this year, as markets anticipate earnings of around $150 million on revenue of nearly $900 million.
The advertising veteran has left WPP in embarrassment after allegations of misconduct he has repeatedly denied which he said were motivated by “personal hostility”. He is still in a legal dispute with the company he has run for 30 years over non-payment of stock awards.
The WPP said it withheld the awards due to alleged media leaks by Sorel. “That’s a bit rich from them,” he said.
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Source: Ukrgate
