Phil Angelastro : Sure. I think given the — some of the uncertainty of the macro and business conditions currently, we certainly plan the business to align our cost structures with our expected revenues as we know them. We always have done that. We’re somewhat conservative about how we do it because we don’t want to be relying on plans that have unsupported new business assumptions where we maintain a cost structure that isn’t sustainable. It isn’t effective and efficient in achieving our margin objectives. So we, like everyone else, have experienced some wage pressures. But there’s a number of other initiatives we’ve been pursuing. We’re going to continue to pursue around outsourcing, in offshoring and automation, and we’re pretty comfortable with the margin targets that we’ve laid out. But in terms of the general macro, there are some things that may be out of our control so we’ve given the guidance which is 15% to 15.4%.
John Wren : Embedded — if I could just add one thing to that, embedded in that and we’re not always successful, but we have added a lot more success than I would have hoped for and going back to clients and getting increases which will help mitigate that issue. And we’ve also gotten a lot more sophisticated as we’ve gone through a couple of these recessions or in that if clients are not willing to give us any smaller, what we’ve been able to do is to increase the length of our contracts with those clients, therefore, increasing the stability of our revenue forecast.
David Karnovsky : John, you also made in your prepared remarks, kind of e-commerce capability as playing a role in winning new business. Just wondering if you could speak to that and maybe the increasing role retail media is playing in terms of client allocation?
John Wren : Yes. At this point, selling client products and what COVID did for online sales is never going backwards. It’s only going to further increase as we move further into the future. Mergers like Krogers and Albertsons will set up a third competitor to the Walmarts and the Targets that are out there as well as the Amazons. Budgets at sales departments traditionally had to motivate those stores to feature those products are, in essence, becoming types of media budgets. And there’s a lot of overlap and convergence in terms of the skills that you need. Having said that, there are some very special skills that you need to focus on retail and sales at that moment of notice or when you get the customers’ attention. We’ve looked at seeing if there is much to acquire throughout ’21 and ’22.
But at the same time, because we were a bit hesitant, we started building it and so we’ve been building it for well over 2.5 years. And I think if you ask us or any of our competitors, every media request for a bid for the last several years, you have to come in and demonstrate to that potential client the strength of your e-commerce capabilities. So it’s something that we are focused on, remain focused on, and we think is going to play a very important role in future business, not only in ’23, but beyond.
Operator: And the next question comes from the line of Ben Swinburne with Morgan Stanley.
Ben Swinburne : John, you talked about the strength and the fill in the media business. Advertising and Media had another nice quarter, similar growth last quarter and you called out media strength. And it’s interesting because if we look at the — whether it’s TV or digital advertising, things got pretty bleak in the back half of last year. So it’s clearly separation here. Could you take us inside of the advertising and media discipline at Omnicom and sort of help us understand the drivers of that continued growth in the business. It doesn’t sound like new business wins really were a factor in last year’s results. I just want to make sure I got that right. And then I had a follow-up for Phil.
