WPP announces that it has acquired a majority stake in Team Y&R Holdings, the region’s largest diversified communications conglomerate, founded by Talal Makdessi (ArabAd Man of the Year 2007), established in 1997 and in which WPP has held a minority stake since 1999, and which operates in the MENA region.

THG’s Chairman is Talal Makdessi & Chairman and World President of IAA Joseph Ghossoub is the Director and CEO.

The Holding Group (THG) a.k.a Team , operates through a wide and diversified range of expertise by companies including Team Y&R, Asda’a [its PR unit], Intermarkets, Mediaedge:cia [the media buying unit], Polaris [another PR firm] and Wunderman.

Team Group has significant operations in the United Arab Emirates, Saudi Arabia, Lebanon, Kuwait, Morocco, Jordan, Qatar and Oman and employs over 1,200 people. Major clients include Emaar, Etisalat, Alpha Telecom, Royal Jordanian, Almaza Beer, Winston, Ford, LG Electronics, Mashreq Bank, Microsoft, Sony Ericsson, Commercial Bank of Kuwait and Visa.

Team Group’s claimed revenues of US$100 million for 2007, with gross assets of US$242 million.

Such a hulking investment is a first its kind; an acquisition that speaks by itself, and where it looks like WPP has more surprises in store coming our way; as this unexpected move confirms WPP’s new strategy, of a full load roll out and networks development, in fast growing markets and sectors.

Originally published in ArabAd, March 2008

Intermarkets, has announced an affiliation with the London-based FISH consultancy, specialists in Internet web-site design and promotion.

Considered pioneers in multi-media and the fast expanding medium of the Internet, FISH designs and builds award winning web-sites for a number of top blue-chip clients using a unique blend of creativity, marketing know-how and sophisticated technology.

Recent successes include nominations for the prestigious YELL Best Site Design Awards in the UK, for work on the Blockbuster Entertainment and The World Wide Fund for Nature (WWF) web-sites, the latter having been recently launched by HRH Prince Philip at St. James’ Palace, London.

Bringing a totally new perspective and approach to the new media through ‘Internet marketing’ techniques, FISH provides a unique service to assist clients in successfully developing and exploiting all new opportunities in this ever-changing field of electronic communications.

“Given the rapid growth of the Internet and the far reaching potential of this new medium, we believe that the time is ripe for forging links with a specialist consultancy such as FISH,” explained Ramzi Raad, Chief Operating Officer, Intermarkets.

“FISH view the Internet as the fifth and fastest growing medium, and expect it to exceed well over 200 million users by the turn of the century,” he continued. “They are experts in this field and our new affiliation will enable Intermarkets’ new and existing client base to benefit from their state-of-the- art Internet services.”

Being relative newcomers to the Internet phenomenon, the Middle East is seen as one of the biggest potential markets as much of the anticipated growth is expected to come from businesses going on-line. In the UK alone, growth is expected to generate billions of pounds in commercial transactions.

Services available from FISH include the design and building of interactive web-sites, CD-ROM press packs, promotional screen savers, user friendly touch screen kiosks for effective point-of-sale, and collation of data for direct marketing purposes which includes on-line warehouse fulfilment services.

Originally published in ArabAd, September 1997

Erwin Guerrovich: clients will have to be more adaptable

Intermarkets founder, chairman and CEO Erwin Guerrovich gave Karen Thomas a progress report on how Lebanon’s reconstruction is effecting agencies and the media.

Israel’s bombardment of southern Lebanon and Likud’s subsequent election victory have hit Lebanese business confidence hard. Despite these setbacks, the international business community has kept faith in the reconstruction process and in Lebanon’s ability to pay back its debts. However, after 17 years of war, Lebanon has learned to function on psychological rather than economic factors says Intermarkets chairman and CEO Erwin Guerrovich.

Israeli raids on southern Lebanon led to a crisis in consumer confidence during the critical spring peak of March-June, he told GMR in an exclusive interview in Beirut.
Lebanese advertising expenditure fell dramatically after the south was evacuated and consumer confidence slumped to its lowest ebb in years. Agencies will not start to recoup their losses until the second annual peak from October to December, if then, Guerrovich said.

“When there are a few months of calm on the political front, the Lebanese start to become over-excited consumers,” Guerrovich said. “But when something like the crisis in the south happens, you suddenly get a situation where the Lebanese immediately go back to war psychology where money is better in pockets, rather than being spent.”

“The first period of the year was hit hard and the result is that it will pick up again, if it does pick up, in October.” Guerrovich likens Lebanon in 1996 to Saudi Arabia in the early oil-booming Seventies, awash with huge infrastructure contracts and over-run with building sites, but lacking an affluent, spendthrift middle class.

Crucially, though, Lebanon lacks oil. What it does have is growing inward investment from the far-flung Lebanese diaspora, a vote of confidence from international financiers and a wealth of local talent waiting to return from overseas.

It lacks a heavy industrial base, but new service-based industries are showing signs of growth.
Lebanon is emerging as a major production centre for 35mm films and commercials, Guerrovich says. Production houses are springing up to take advantage of the republic’s ample supply of talent so that more commercials are being produced locally, rather than in Europe.

“More and more companies are making their commercials here, because they find that our quality compared to price is very interesting,” Guerrovich says. “Now, agencies in the Gulf are doing their production work in Lebanon – and not just the ones with Lebanese managers, but the expatriate agencies as well.”

Middle Eastern advertising first took root in Lebanon and Guerrovich set up one of its first agencies. He founded Middle East Marketing and Advertising Services (MEMAS) in the early 1960s.
After steady growth and several strategic mergers, MEMAS spawned Intermarkets. Today the organisation handles both advertising and public relations and has branches in Saudi Arabia, Kuwait, Bahrain, the UAE, Jordan, Syria and Yemen.

Today, Intermarkets’ regional stable of advertising and PR clients includes Lancome, Polaroid, Visa International, Singapore Airlines, Lufthansa, Unilever Gulf, Grundig and Tag Heuer.
Agencies’ other preoccupation is the restructuring of Lebanon’s media. “There has been a war in this country between the television stations which represent the bulk of advertising expenditure and this war has led all the television stations to have super conditions officially on the rate card for clients,” Guerrovich says.

Lebanon’s media shake-up is not the only change on the horizon. The signs are that advertising agencies and their clients will also have to adapt to the new, more commercial environment, Guerrovich predicts.

All the signs are that these changes have already started. Earlier this year, the country’s largest agencies set up a syndicate to promote greater transparency in their dealings with the media.
Traditionally, multinational companies have relied on local agents to buy airtime. Those agents have spread their bookings between a large number of channels, often going through small advertising agencies whose lower overheads could easily undercut their larger rivals.

In a future with fewer channels, Lebanese agencies want to bypass the agent and approach the client directly. Clients will have to work with larger, more professional agencies to buy airtime more effectively, Guerrovich hopes. “Today, we have a situation where the leading agencies are strongly structured and offer more professionalism than the market needs. And the market is not following with the development of ad volumes and the mentality of the clients,” Guerrovich says.

With these kinds of imbalances, the Lebanese advertising industry will have to brace itself for further restructuring, mergers and closures. And as the biggest agencies club together, small agencies with narrow margins will bear the brunt of these changes.

Originally published in Agencies

Sonia Chaanine

BEIRUT – Intermarkets Lebanon is undergoing a major reorganization that will give the Intermarkets Group unprecedented strength in Lebanon. Joining Intermarkets Lebanon in key executive roles are Ramsay Najjar, Elie Khoury with The Agency Group and Sonia Chaanine and her team. Erwin Guerrovich, President of the Intermarkets Group, described the move as “another landmark.”
The Agency, a young and creative company headed by Elie Khoury which quickly made its mark in Lebanese advertising, is merging with Intermarkets. Top executives of The Agency are coming on board. They include Adel Kanaan, Marketing Director, Hannibal Raide, Associate Creative Director/Producer, and Abdo Saleh, Chief Art Director.

Elie Khoury

Sonia Chaanine, who recently set out on her own outside the Advise Group, and Ramsay Najjar, currently Associate Director of Trust Advertising, are also joining Intermarkets.
The reorganization creates a new executive board for Intermarkets Lebanon together with members of the existing management. Ramsay Najjar becomes Chief Executive Officer, Elie Khoury is Chief Operating Officer, Jack H. Makhoulian becomes Vice President for Client Servicing and Sonia Chaanine is Vice President for Sales Promotions and Public Relations. The new executive board is to report to Intermarkets Group general management.

Erwin Guerrovich

Erwin Guerrovich explained the rationale behind the reorganization: “We have always believed in mergers and acquisitions as a source of strength in manpower and development. It is part of our company philosophy. And in the history of our company we have accomplished mergers that proved highly successful in increasing both our professional strength and the scope for our activities. This new merger is another landmark which reflects our constant concern for progressive management for the benefit of our clients, staff and company.
Foremost among our objectives is to provide our clients with the full scope of still better services in all areas. The strong team that is being created covers account planning, marketing, strategic thinking, creativity and promotional/below-the-line specialization. It is a team that will complement our manpower throughout the area and contribute to our regional activities.”

Ramsay Najjar

Commenting on the merger, Ramsay Najjar described Intermarkets as a “finishing school” that creates top advertising executives and which he is now rejoining after an absence of some years. “I am proud that in this way I am achieving my original and professional destiny and moving towards self-fulfillment. The professional interaction and the outstanding performance of the corporate team will always be the most motivating environment for an ‘old timer’ like me as I rejoin my advertising alma mater.”
Elie Khoury said that “The approach of Intermarkets was no surprise to us. The company has a long history of successful mergers. During the negotiations it was clear that the chemistry was there. So was the unity of our goals.
“I am certain the merger will be most rewarding, not only to the company but mainly to our clients,”
Elie Khoury said. “It is certainly a great boost to our professional ambitions and a promising shift towards broader horizons.”
J.H. Makhoulian added that the merger “is undoubtedly a landmark for our clients and for our Lebanese agency. It will have far-reaching effects on the overall strength of our entire regional group.” Makhoulian’s experience covers Intermarkets operations in Kuwait, Dubai and Bahrain. “I am particularly proud to have been a part of the planning of that master structure over many months,” he said.
Sonia Chaanine noted that “a great deal of my professional reputation has stemmed from my interest and achievements in merchandizing and sales promotions. The limited attention that has been given to that element in the marketing package has always been a frustration. I welcomed the approach of Intermarkets because it will allow me to build a specialized unit inside the agency that will add further scope to our services.”

Originally published in ArabAd, November 1988

Joe Ayoub, general manager at Intermarkets, Beirut

by a staff reporter

Joe Ayoub has recently relocated to Beirut as general manager at Intermarkets. He spoke to Arab Ad about himself, Intermarkets and the Lebanese advertising industry.

AA: Perhaps we could start by finding out who Joe Ayoub is.

JA: Briefly, I’m 34 years old and after graduating from the American University of Beirut in 1983, I started working as an auditor for a leading company. That lasted for two and a half years. My first steps in advertising were at the Promoseven agency which I joined in 1986. I stayed there for six months and then I was offered a job at Strategies where I was responsible for the Fattal group. One year later, in 1988, I got the opportunity to join Intermarkets in Saudi Arabia, handling mainly Proctor & Gamble’s business there. I have been at Intermarkets since then. I was promoted quickly to group account director at the Middle East level for PSC and the Nissan motor company. These were the two major accounts I handled for the past five or six years at Intermarkets. After the liberation of Kuwait, I was promoted to general manager of the Kuwait office before being transferred to Lebanon in 1992 as co-managing director with Sonia Chaanine. And after her departure, I assumed the responsibility myself, managing director in Lebanon.

AA: Do you consider yourself a newcomer to the Lebanese market?

JA: No, in fact, I’m not. I worked here briefly earlier on but I now rejoin the Lebanese market after an absence of five years in the Gulf countries. So, I assume a lot of things have changed. Actually, you could say that things have changed so much that I could be considered a newcomer.

AA: What are these changes which have occurred during the past five years in Lebanon, and how do you intend to face them as a young general manager in one of the bigaest agencies in the Middle East?

JA: First, the most noticeable changes that have occurred have to do with the media scene. A lot of new media have emerged. If we go back to 1986, there was only one TV station, one outdoor network, Pikasso, and probably two or three radio stations. Now the numbers have all multiplied. Second, the level of communication has dramatically transformed. At that time, I recall most of the clients didn’t appreciate any presentation document except the last page where they looked at the budget. At least now we can say that time is being taken in evaluating proposals before evaluating the budget. Third, the number of advertising agencies has also multiplied and some of them are professionals, some are semi-professionals, and the others are unprofessional! So these three factors are the marketing mix; we have to deal with each one separately, while at the same time, taking them all into consideration.

How I intend to face all this, to be honest, is tough because I can’t change much. One hand alone doesn’t clap. What we need is a totally different vision for our industry. We need to pull all the young resources together and generate new ideas to convince more and more clients of the benefit of advertising because some are still not fully convinced. Plus we have to introduce the latest techniques in advertising available world-wide to this market.

AA: Let’s go back a bit to Intermarkets. Rumours have circulated in the past five to six months about employee changes, restructuring, financial problems, and so on. Can you clarify the situation.

JA: There have definitely been a lot of changes going on at Intermarkets and not just over the past five to so months, but for the past two years. Changes at the managerial level have affected the overall image of the company and even its performance at the local level. However, to go back to the past six months, it is true that we have had a reshaping of staff because a lot of old staff left. At the same time, many clients also left but many new ones have joined the agency during the same period of time. While a reshaping of staff can be dangerous, at times it is highly needed. This is what the situation was at Intermarkets. We had a total replacement operation where we injected new blood, professional people previously working at other agencies or in their speciality. It has been highly efficient to us and it has translated into new accounts. In this sense, I’m optimistic. I don’t believe the financial troubles we are experiencing are different than what other agencies are facing these days. A lot of it is mostly rumours and, at any rate, financial problems are affecting the whole country. It’s a general ‘malaise’ existing on the local scene and we are only part of it, not less and not more than anybody else.

A A: You are young and have been in the business for the past six or seven years. What do you bring to an agency which is a pioneer in advertising in the Middle East?

JA: Well, I think I am in a fortunate situation because I can benefit from the heritage and wisdom of such a well established agency. My role is to add to its dynamism. I’m a Lebanese advertising person who has had the opportunity to train outside Lebanon. For example, I attended a four-month training session at Saatchi & Saatchi, London. Working on the P&G account there, I was exposed to the whole philosophy of multi-national agencies; how they operate, how they view long-term thinking, and so on. These are the sort of things Lebanon needs badly. I believe that clients are bored with getting the same story over and over again from their agency. They need something new; something more tangible that can prove to them that their business will get better and better all the time. I hope, with all modesty, that I can contribute in upgrading a little bit the agency’s approach to clients, plus its own internal system and procedures.

AA: I would like to ask you a somewhat sensitive question. Ramsay Najjar left Intermarkets to open a new agency with Saatchi & Saatchi, who were formerly aligned with Intermarkets; Eddie Moutran left Intermarkets to open with Ogilvy&Mather, also formerly aligned with Intermarkets; and Joseph Ghosoub, one of your leading managers in the Gulf, left to join Team Advertising, which is a very successful operation in the Gulf. They were all considered the image of Intermarkets, having done a great deal for the agency. How does Intermarkets let people like these leave and loosen the alignments with the multi-national agencies?

JA: In fact, that is a good question because I’m sure people in our industry are asking the same thing and it has never been answered correctly. Although I don’t have the full answer and I wasn’t involved with most of them, I can say the situation is both a sad and positive one. On the positive side, Intermarkets, in a sense, is being perceived as a school where people come, graduate and go on to make their own fortunes. The sad part is that they had to leave in the first place. Some had their own personal reasons and whatever you do, you can’t keep somebody or prevent him from developing his own interests. It is a shame they left the agency and somewhat regretful. However, one day we may be able to contact them and build something together again. It does not necessarily mean that because they left the agency to form their own alignments that opportunities between us are finished. Chances may still exist; we are still in contact with all these good people. I still believe that once the new generation at Intermarkets, the fresh blood, matures and comes up with its own new ideas, good solid relationships will develop again. Anything can happen. Nobody can predict the future but if the management at Intermarkets is aware of their mistakes, of the past, that’s a start.

AA: Do you consider them mistakes?

JA: Some, Yes.

AA: Do you feel Intermarkets is an old structure requiring new blood?

JA: Definitely, like any other big agency that is old. I want to mention the oldest, Publi-Graphics, which is facing the same situation. They need young blood and they have been recruiting a lot lately. It is a must for the continuation and the benefit of our business.

AA: Do you think this fresh blood is available in Lebanon?

JA: Yes, otherwise you wouldn’t see small creative agencies opening every day, like Sharp Pencil,Third Dimension, Triple H, to name just a few.

AA: You mentioned that you are siil in contact with ex-Intermarkets people. Are there any plans for a super agency that would regroup all?

JA: Well, anything could happen. It is not immediate but the thought there.

AA: You haven’t made any approaches yet?

JA: No, I think it is too early now.

AA: In the last five months Intermarkets has lost a few local accounts and they lost their number one standing in Lebanon. What happened?

JA: Yes, we have lost our first place ranking and this is due to a couple of factors. First, because of the absence of an international link for the past two years, we are not getting the blood of international business which is essential for our billings. Second, the changes that have occurred at the managerial level have definitely had an impact. Our business is a business of people, of communication, so we can’t disregard that over a certain period of time, a manager will develop strong relationships with clients. It is only normal that when he leaves, the client will have the tendency to follow him. However, having said this, I believe that we have to develop and present our billings and relationships so that when a manager leaves, the agency is not trapped like a boat in a storm. This is important and the first task I have set for myself. For the past six months more than 95% of my efforts have been set on this task. I believe that from now till the end of the year, I will have completed this task; that I will have a strong, horizontal structure. What’s left now is to go after new business and prove that, once again, Intermarkets is an agency to be considered.

AA: What is the formula adopted by Intermarkets concerning the agency/client relationship?

JA: We are still following the conventional agency commission agreement with our clients. We try to stick to the legal agency commission without giving rebates as much as possible though we face a lot of pressure and our loss of billings is partly due to this. I don’t want to mention specific clients, but many are shopping for an agency, that will give them discounts and this has affected a lot of us. When you are a big firm, employing more than 45 people, you can’t allow yourself to give discounts here and there. You have to compensate this by providing a better product and more efficient results for the client. I hope that clients will understand and appreciate that by giving an agency full commission, the agency in turn will dedicate itself day and night to service them at their best. So, I must admit that we have lost some clients due to billing procedures.

AA: There have been attempts in the past to remedy this situation through meetings and agreements. None of these strategies worked, why?

JA: Usually, the answers to such questions are very diplomatic. However, I’m not going to be diplomatic. Yes, it is true that no agreement in Lebanon lasts for more than 24 hours. The reason is due to the basis of the agreement’s existence in the first place: it was out of personal interest and not for the interest of the general public.

I don’t think these agreements will ever work as long as we have the same people trying to do what they failed to do before. We have to have new people, new blood trying to change and work for the general interest, to most benefit our industry.

AA: How do you view the Lebanese market? Are you optimistic or do you think the “jungle” is going to prevail for a long time?

JA: I think it will take another generation before we can see a new and completely different advertising scene. Changes will come, but slower than we expect because of these factors and problems. But, I’m definitely optimistic about it and, as I said, it will take a new breed of advertising people and a new breed of clients to make these changes.

AA: In other words, you have just signed a death warrant for the present advertising generation in Lebanon.

JA: No, not a death warrant. We are in a sensitive situation. The industry has not been healthy during the past 15 years. It was growing and shining in terms of billings because people had to spend to promote their products, but that doesn’t mean that the level of ethics and professionalism were up to standards. We are no longer in that situation and hopefully it won’t be long before a completely healthy industry is upon us.

AA: Do you think the next generation will help Lebanon regain the position it used to hold before the war?

JA: Definitely. Who is making the GCC advertising market bloom? The young Lebanese who are bound to return to Lebanon sooner or later and duplicate that success here.

AA: There is a big debate going on today about whether an independent agency can survive alone or should be affiliated to a multi-national. Intermarkets is now an independent company. Do you plan to stay independent or are their plans to align with a multi-national agency?

JA: To be perfectly frank, I believe that unless you are associated with a multi-national agency, your chances of survival are much slimmer. What is happening more and more today are clients switching to another agency because it is affiliated with their inter-national agency.

Since the break with Saatchi & Saatchi, Intermarkets has renewed contacts and connections with many world-wide advertising groups. We have plans and very positive contacts with two major international agencies, and we hope that within one year, we can announce some good news about these plans.

AA: So it’s a new alignment?

JA: Yes, absolutely new.

AA: Do you have any other comments you’d like to make?

JA: I would like to say that I hope readers will take what I have said in a very positive spirit.

Originally published in ArabAd, August 1994

DUBAI – Intermarkets concluded its Dubai meeting late January in which the company’s executives laid down plans for staffing, training and the upgrading of their four Gulf offices.

Rarticipants with RAAD

The meeting was chaired by Ramzi Raad, executive vice president of the Intermarkets Group. Also in attendance were Nadim Sfeir, Saudi Arabia, Bassam Soboh Kuwait, Joseph Ghossoub, UAE, and Shankar Narayan, Bahrain.

In the meantime Intermarkets concluded a workshop in Kuwait between 20-25 January for executives from the client servicing and media departments of Intermarkets Kuwait. Those attending included Rana Shebeata, Mohammed Kassassier, Shaheen Kazi, Mohammed Jundi and Louay Abu-Nada.

Originally published in Arabada, April 1988

The Intermarkets Advertising Management Group recently held its annual meeting at the Royal Abjar Hotel in Dubai. The meeting reviewed the achievements of the group for the past six months, during which accounts such as Rothmans of Pall Mall, the British Bank of the Middle East, Trisa, and Alberto Culver were won.

The group also reviewed final plans for the introduction of direct/integrated marketing services via the joint venture company Tequila Middle East, which will operate as a sister company very much like Intermarkets Public Relations, Middle East affiliate of Burson-Marsteller, the world’s largest public relations consultancy.

The meeting finalised Intermarkets’ expansion strategy up to the year 2000, a strategy aimed at delivering the group’s goal “To be the best”.

Intermarkets started in Lebanon 35 years ago, and its Dubai office was set up 20 years ago. The agency also has offices offering integrated marketing services in Saudi Arabia, Kuwait, Egypt, Jordan, Yemen and Syria.

Attending the meeting were Erwin Guerrovich, Intermarkets Group CEO; Ramzi Raad, executive vice president & managing director – Dubai; Joe Ayoub, managing director – Saudi Arabia; Fady Mouannes, managing director – Kuwait; Bassem Dajani, managing director – Jordan; Makram Zeenny, managing director – Syria; Galal Zaki, managing director – Egypt; Khalil Bitar, the Group’s senior vice president of finance; and Nadim Sfeir, vice president-Levant area and Saudi Arabia.

Originally published in ArabAd, May 1996

Following a review, Rothmans of Pall Mall (International) Limited confirmed that part of its regional account will move to Intermarkets, the associate company of Rothmans’ UK agency TBWA. However, the tobacco giant will also maintain close links with Publi-Graphics with whom they have worked for 20 years.
Publi-Graphics retain the sizeable sponsorship and public relations account for the Middle East division of Rothmans. The development of public relations has been of key importance since their entry into Formula One motor racing with the Rothmans Williams Renault team.
“We are very pleased that Rothmans have endorsed the success of our public relations operation for them and look forward to continuing this successful partnership,” said Samir Khammar, Regional Director of Publi-Graphics.”
He added, “As long-time colleagues and friends, we wish both Rothmans and Intermarkets well in their new association.”
Chris Tomkinson, Managing Director of Rothmans of Pall Mall International, Middle East Division said, “We look forward to Publi-Graphics continuing their valuable contribution in the sponsorship, public relations and associated areas – particularly in relation to the Rothmans Williams Renault Formula One Team which plays an extremely significant role in our business, both globally and in the markets of the Middle East.”
Originally published in ArabAd, 1995

Intermarkets Advertising has been chosen to handle the advertising and promotional budget of Mtayleb Country Club. This is in line with the commitment by Intermarkets to provide clients with a consistent and continuos service.
Mtayleb Country Club will be the ideal environment for those who want to relax and get rid of the stresses of city life through sports or merely by doing their own thing. Membership of this luxurious club is restricted to shareholders.Mtayleb Country Club is to be built on over 10,000 square meters of a hilltop pine grove only a few kilometres from Beirut. With construction of over 32,000 square meters of buildings, Mtayleb Country Club will have outdoor and indoor swimming pools and tennis courts, a health club, bowling, billiards, squash, shooting and many other activities. There will also be a nursery to care for the children of members.
Intermarkets Advertising won the budget after strong competition from other advertising agencies.
Originally published in ArabAd, 1995