Sorrell gets critical of competitors

The Media Bulletin reports that during a conference in Barcelona, Sir Martin Sorrell bashed rival advertising networks, saying they behave in an 'irrational' and 'desperate' way in their attempts to win new business.

The WPP chief executive mentioned British rival Aegis Group and Havas as two companies that had guaranteed media rates to their clients -- meaning that the agencies' fees could be eaten in to if the guaranteed rate can not be secured.

"It is the act of an irrational competitor. It is a little bit disturbing. It is driven by people in the mid-market who are a bit worried about what the consolidators are doing," Sorrell said in the Financial Times.
[...snip...]
"IPG is a wounded animal and it lashes out. I do not think there is much in the way of cost control in terms of hiring people. You do not give people three-year guarantees to move unless you are pretty desperate," Sorrell said.