Photo: Christopher Gabello
Still, necessity plays a role in Seiler’s motivation. “Mediabrands can’t lead with scale so innovation attracts clients looking for that,” says one agency veteran. “But they’re challenged to win business when a decision maker believes size drives pricing. That’s not where Mediabrands wins.”
Seiler wants to be the technology-driven Nasdaq to the industry’s more traditional NYSE floor traders. Driving automation efficiencies into the process doesn’t concern him. Agency competitors are either paid on commission, where they have to spend as much money as possible, or in man hours where they need to keep as many people on a client’s business as they can. “But if you’re paid for performance, all you care about is, ‘How’s the client doing?’” Seiler notes. “Are they achieving their business objectives? If we can do that with fewer buying bodies and then reinvest on custom and sponsorship where we know things are much stickier, the better.”
Today, half of Mediabrands agencies are on pay-for-performance contracts, which tie agency creative teams’ financial incentives to clients’ business results.
Case in point: Initiative Germany’s efforts to reelect Europe’s most powerful politician last fall. Chancellor Angela Merkel was projecting a 23 percentage point win. Achieving that meant Initiative would get paid according to a regular contract; if she didn’t get reelected, the agency wouldn’t receive a single Euro. A return beyond 23 percent meant Initiative would share in the surplus. The result surpassed even Merkel’s own polls. Her Christian Democrats and allies, the Christian Social Union in Bavaria, pulled in 41.5 percent of the popular vote. Initiative realized an additional 17 percent in revenue beyond what was negotiated upfront.
“We weren’t behaving like a media agency. We were a crusader on Angela’s behalf, which meant we came up with so many innovations outside normal expectations,” says Seiler. “People do what they’re paid to do. If you pay them to build clients’ business, that’s what they’ll do. If you pay them to come up with a media plan, that’s also what they’ll do.”
Seiler adds the reason for much of that innovation reflex is the diversity of the people around him, execs who, like him, don’t possess traditional media agency DNA. The global chiefs of Mediabrands’ three networks all have strategy in their backgrounds: Daryl Lee at UM had been a McKinsey consultant; Jim Elms at Initiative was a media supervisor who worked with Seiler when the two were at Goodby, Silverstein & Partners; and Mauricio Sabogal at BPN spent time at Nielsen. Jacki Kelley, Mediabrands’ North American president, global clients, had worked for media owners like Yahoo, USA Today and Martha Stewart Living Omnimedia, and Jim Hytner, CEO and president, global clients for Mediabrands G14 markets, was a client at Barclays and Coca-Cola.
Last year Seiler restructured those top management ranks to upend silos, reorganizing away from P&L and putting a focus on strategy. Agency heads were put in charge of strategies and products while Mediabrands assumed management of P&L, with execs like Kelley, Hytner and Andrea Suarez, who runs the world markets region, leading the way.
“The level of collaboration that came from that shift has been mind-blowing while our competitors still have hundreds of P&Ls,” says Kelley. “If you’re not up for transformation, a taste for change, fire in the belly, don’t come work here.”
When Seiler went to IPG CEO Michael Roth to explain that change and its associated costs, the holding company chief asked him to promise not to restructure again anytime soon. “I said I wish I could promise that, but I can’t,” recalls Seiler. “The world is changing around us at such speed, you have to have the flexibility to address it all.”
That penchant for rogue reinvention may be in Seiler’s genes. At the age of 42, his father, a major influence, got bored with his prestigious job as the associate dean at the Harvard Business School and decided to study architecture. Later in life, he studied mediation, arbitration and litigation and became a mediator until his death at 81.
Seiler’s own career has taken him through account work on everything from Procter & Gamble, BMW (which was his dream client) and PepsiCo brands at Benton & Bowles, Ogilvy & Mather, Ammirati & Puris, GS&P, BBDO and Omnicom before moving over to the media side, first as president, CEO at PHD, then as global chief at UM. (When he wanted to move out of his job as chief insight and integration officer at Omnicom and back into an operational role in media, he called Omnicom CEO John Wren. An hour later, Seiler, with no previous media agency management experience, was offered the PHD job.)
Bill Katz, chairman of Mediabrands’ partner Visible World, which creates targeted TV ad solutions, was president/CEO at BBDO in New York and Seiler’s boss when he worked at the shop in the late ’90s. Katz was part of the decision to offer account exec Seiler the agency’s top strategic planning role and was initially taken aback when Seiler told him he wanted to shift to the media side.
“He was self-trained, an account person with a creative mind and natural instincts about what we were trying to do and say,” recalls Katz. “I was surprised about his move to media until he explained it to me. Back then it was simply about the distribution of a message, but he saw media platforms changing quickly. He wasn’t the only one, but, given his background, he saw it from a different level. It wasn’t just about distribution, it was becoming about the way the message affected behavior.”
Concurs Facebook’s Everson: “Matt always values and knows that at the end of the day ideas are always critically important. His background at creative agencies is really relevant to his success on the media side.”