MPG CEO Comes to U.S. and Brings HQ With Her

NEW YORK Proving once and for all that MPG means business in the U.S., worldwide CEO Maria Luisa Francoli will relocate from Spain to New York in August. As a result, the Havas unit's base of operations will effectively leave its European roots, landing instead in the market that Francoli believes will drive much of its future growth.The move effectively transforms MPG's North American headquarters into its worldwide headquarters, though Francoli dislikes the label. "[It suggests] heavy structures and inefficiencies," she said. "We prefer to talk about people and functions located in places, not headquarters. But the fact is that the head of the network will be based there, so if you want to blame somebody [for anything], you will have to go to New York."Francoli last week told Adweek exclusively that her relocation had been under discussion with Havas' higher-ups— including CEO Fernando Rodés Vila—since sometime last year. She and her family decided to make the move in March. Married with two young children, the native Barcelonan said the decision to make such a big move was "personally difficult," given the distance, both culturally and geographically, between New York and Spain, where they currently reside. "But at the same time it's very exciting," she said. "It makes sense being the head of the network to be based in the biggest market in the world, the most important market and the one that can mean strength [to an agency] in a very big way," Francoli said. Up to now, Francoli, 46, who was named to the CEO post in 2006, had traveled to the U.S. about eight times a year to meet with the North American team. For the last two years, that team has been run by North American CEO Charlie Rutman, who was recruited from Carat USA by Rodés Vila, who ran MPG Worldwide before being elevated to Havas CEO in March 2006.Francoli said her move is not tied to efforts by Havas chairman Vincent Bolloré to forge an alliance between MPG and London-based media holding company (and Carat parent) Aegis Group, in which Bolloré has a 29 percent stake. "That is something that is not in our hands, and you would be surprised how little we talk," she said. MPG itself is prepared to make acquisitions on an as-needed basis, she said, though with the goal of sharpening proficiency in given skill sets—not simply growth. "Our goal is to be most admired in terms of our product, not the biggest," she said. "Once you have critical mass, volume loses a lot of its meaning." And the network has critical mass throughout the world, she believes, with the exception of Asia, where MPG is now in the process of expanding its offering. Francoli credited Rutman for putting the North American operation back on an "upward trend" after a couple rough years of client losses, most notably Volkswagen ($400 million) in early 2005. That year the North American unit posted a 2 percent billings and revenue decline (to $2.8 billion and $109 million, respectively). Last year the numbers were significantly better, with revenue up 10 percent to $120 million and a 9 percent billings increase to $3.1 billion.MPG worldwide billings were up about 8 percent in 2006 to $9.8 billion, according to estimates by Paris-based billings tracker Recma. Havas' financial filings said that worldwide media revenues were roughly flat in 2006 at approximately $400 million.Francoli said she was particularly pleased with two North American wins in 2006: the global ExxonMobil corporate account ($70 million) and Danone in the U.S. ($75 million). ExxonMobil is a "fully American brand that has put their trust in us globally. So it's an important win for what it represents [beyond] the business itself," she said. Danone has been conducting market-by-market reviews throughout the world over the past 18 months, and Francoli estimated MPG has won close to 60 percent of the business that has been in review, including the U.S., France and Spain.But Francoli believes the agency can do better in North America. "We have the right product, and we need to be more visible and more aggressive in our approach to new business," she said. "I think Charlie has been a great help in actioning that, but we need to do more."We have momentum, but the day we think it's good enough, we will all retire and that will be the end of it," she continued. That momentum is reflected in MPG's inclusion in the finals of the Sears/Kmart review, competing against incumbents MindShare and MEC Interaction, and Carat and Horizon Media. One recent setback: Hershey's pulled its $100 million planning business and placed it with incumbent buyer OMD without a review. In addition to new business development, other 2007 initiatives include expanding the shop's branded content unit, which in the U.S. is overseen by Hank Kim, director, MPG Entertainment, and forging closer operational ties between MPG and its sister digital shop, Media Contacts. The branded content expansion is being driven by client demand and is one of most sought-after diversified services, said Francoli.Earlier this year, MPG established a new video integration unit that is overseen jointly by Bill McOwen, director of media investment, MPG, and Ed Montes, managing director, Media Contacts, to coordinate activities between the divisions.Francoli joined MPG in 1993 as director of corporate development and was instrumental in planning the expansion of the MPG network beyond Spain and Portugal. In 1997, she led the planning for the start-up of Media Contacts and became its CEO in 1999. In 2003, she was named CEO of MPG division Media Planning Network.

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MPG CEO Comes to U.S. and Brings HQ With Her

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