Q&A with John Preston: How selling to Publicis will change independent Match Media
Australia’s media agency landscape was transformed yesterday with independent Match Media selling to multinational Publicis Groupe. Match founder John Preston talked to Nic Christensen about the deal, why he sold, what it means for independent media agencies and the wider agency landscape.
Let’s start with why you’re selling?
You know what, I’ll tip my hat to [Mumbrella editor] Alex Hayes who noted back in January how the independents are struggling and grappling with the need to equip themselves with technology, data, research and platforms such as programmatic.
It is absolutely true that Match could survive over the period of the next 18 months quite comfortably, but can it survive as a stand alone beyond that? I very much doubt it.
What we did was we really scoured the market to try and find a partner that would fit that future piece. What would make Match Media viable or indeed could we partner with a network that would make us more a force to be reckoned with in the marketplace?
Why did you choose to align yourself with ZenithOptimedia?
I see the question as why Publicis first. With them we were attracted to the fact they have a real mission to focus on digital and technology. The acquisition of digital agency Sapient Nitro – when you think about the digital capability that they have worldwide – they have this real stamp of authority. They are being much more active in the digital space and with the ZO group had this wonderful, wonderful opportunity to set up a whole new network.
It’s not everyday you get to say I’m actually going to be part of a new global network. As we talked to ZO more and more the proposition of working with them became more and more attractive.
I know Phil Georgiadis from Walker Media [who sold to Blue 449 in UK] and he and I met in June last year and we had a long discussion about what life was like as an independent and then being taken over and he really influenced my decision to be part of this.
Also, once in a while you come across somebody you’d actually like to work for and that was Gerry Boyle who runs Asia-Pac (for ZO). Now I haven’t had a boss for something like 12 and a half years but I’m very, very happy to have someone like Gerry as a boss.
Will you and Match’s senior guys (partners James Simmons Ian Czencz) be staying with the business in the long term?
Yes I will be staying with the business. I’m really excited to forge the next wave of Match being part of a new network and trying to create a new network proposition.
You can’t have a media network proposition that is just same same – it has to be different. It’s very early days but we have to prove it’s going to be different. The mantra is very much about being digitally progressive, collaborative, and being able to work with partners in the group and also outside the group.
I think that’s a step that the big multinationals only permit you to talk to people about within the group and often those conversations are not at all collaborative. We now have the remit to do that – work with a digital partner, creative partner or the media.
All the management team is staying. Everybody is staying on. We are tied to the journey.
Can you tell us the sale price and if there’s an earnout?
I can’t tell you the price but yes there is an earnout. But I can’t go into the details why, how long or how much. What I will say is there will be the earnout period and then there is how potent this network will be.
How do you align the different cultures of Match, Walker in the UK, with Publicis and ZenithOptimedia?
Overall the mission is to be Blue 449…
Does that mean Match Media’s brand will die in Australia?
Not in the immediate future. Walker Media was acquired and was rebranded in the period of about 18 months.
They formed Blue 449 as the network HQ and they are now going to roll out 17 offices around the world. Some will be acquisitions and some will be organic extensions of ZenithOptimedia.
In this market the goodwill of Match Media is strong and so potent right now that it would be commercial suicide to change the name to Blue 449 today.
But at some point I firmly believe that Blue 449 will be such a strong brand name that we would look at the good will and potency of that name and weigh it up against Match Media.
I’m not saying never but I’m saying right now we are staying as Match Media until we come to a point where we feel it is appropriate to migrate to the Blue 449 name. But we are firmly part of the network and we are powered by Blue 449 and ZenithOptimedia and in turn, Publicis.
What has the client reaction been to the change?
It has been incredibly positive. I think all of them have felt it is Match Media as we all know but Match Plus. It is a great extension of Match’s offering, super charged with access to tools, technology, resources that we couldn’t offer.
They are excited that we are staying the same. The same staff, the same location.
The staff reaction has also been good and there will be the opportunity for them to use their experience within the network and we are hoping to bring in talent into this market.
It is also all the training and all the access to conferences that we will have that is exciting. It will be Match Plus for staff as well. It will be business as usual but we will be introducing the benefits in the coming weeks.
Can we come back to your original point about the independent media agencies. There are only a few of you – Match, Bohemia, Slingshot, Nunn Media – but you get a lot of client attention and media attention. Do you really think it’s going to be hard for the indies to survive in the future?
It is going to be very difficult for the independents at scale, who are competing directly with the multinationals, to keep up with the pace.
That is the bottom line. I think if you are a smaller independent with a certain type of client then there is definitely still room for you to live and breath in this market. But if you are an independent at scale, and I would put Match clearly there, then I just don’t think in the next 18 months to two years we were going to be able to compete with the multinationals. But that’s not my problem anymore.
We will now be part of the multinationals and continue to compete with them.
Congratulations JP and the team at Match! A very exciting time ahead for the Matchlings. A wonderful win for Publicis, congratulations on building your little agency up to such a strong powerhouse. Best wishes with the transition.
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