Yahoo Finance Advertisers should help force Facebook reform, says M&C Saatchi agency boss
Advertisers and their agencies should use their financial clout to force change at Facebook in the wake of the Cambridge Analytica data scandal.
David Kershaw, chief executive of M&C Saatchi, said that users of the social network were unlikely to delete their accounts en masse and that pressure from advertisers would be more likely to trigger real privacy reform by Mark Zuckerberg.
The global firestorm over allegations that the British company Cambridge Analytica was able to download reams of personal data from Facebook to create detailed profiles of voters continues to rage. Politicians and regulators have called for Mr Zuckerberg to account for Facebook’s role and suggested tougher privacy rules.
“This is a moment for agencies and their clients to exert pressure,” said Mr Kershaw.
“Consumers are going to carry on using Facebook whatever. But if big brands start saying we don’t want to be associated with this then Facebook will have to change.”
Advertisers also have rising concern over the market dominance of Google and Facebook, and Mr Kershaw said new curbs might help other digital media flourish.
He weighed into the debate as M&C Saatchi reported strong annual results, bucking the trend seen at bigger global advertising groups such as WPP.
Excluding currency fluctuations, M&C’s sales were up 7pc to £241m. Pre-tax profit increased 16pc to £24m.
Mr Kershaw credited the performance to M&C’s client base, which includes more local brands and is less reliant on global giants than WPP. P&G and others have been trimming spending under pressure from activist investors.
M&C also said it had delivered a turnaround in its UK agency after replacing its management and restructuring. The sharper operation is winning new clients such as L&G Investment Management, Mr Kershaw said.
M&C Saatchi shares rose 1.7pc to 409p, close to an all-time high.
