Philippe Krakowsky: Look, I mean, we’ve got a terrific media offer to your point, and I think that’s been clear, both in what we keep saying about the performance there and the new business performance year-to-date if you sort of consider major pitches from GEICO at the early part of the year all the way through General Mills, which was yesterday. That said, I will — I think you’re clear you have a point of view, and it could very well be that we are missing out an additional source of growth there, right? So I think the question’s come up before. It’s a very valid question. And we clearly have to be open to exploring every avenue for delivering value to our clients. And that includes our trading model, by which I mean how we buy media on their behalf, right?
So clients value product and results. We’re very strong in that regard. They also value efficiency, and we have to deliver on both sides of that equation on both fronts. So I think that like you said, it’s been a conversation we’ve had on a call like this one and then just when we’ve met independent of this. And we’re looking very hard at our model within the media component of this for that reason because you’re right. I mean, there’s no upside in leaving growth on the table.
Michael Nathanson: Got it. And then can I ask one to Ellen? Billable expenses. I know there’s no media there, given what we know. The growth was pretty strong this quarter. Can you tell us what was that tied to?
Ellen Johnson: Sure. I think it’s consistent with the growth you saw in our SC&E segment.
Michael Nathanson: Okay, so netted out some don’t, clearly.
Ellen Johnson: Those billable expenses are predominantly associated with that segment, and that segment grew nicely. So…
Michael Nathanson: Okay. Thank you, guys.
Philippe Krakowsky:
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Operator: Thank you. The next question is from Steven Cahall with Wells Fargo. You may go ahead.
Steven Cahall: Yes, thank you. Good morning. So Philippe, you talked about the 3.2 percentage points growth drag from tech and telco and digital. And I don’t think that was too new from Q2 to Q3 because we’ve talked about that a lot this year. And same with the macro concerns, I just know we’ve been talking about those this year. So I guess my question is what has changed most from your perspective over the last three months? It seems like the business did deteriorate in some ways versus your prior expectations. I think we’re trying to understand what of that is idiosyncratic related to a lot of the agencies you’ve talked about? And then what might be just more broad-based that can really flow and extend into a great deal of next year?
So just love to have some incremental color on what’s changed the most more recently. And then, Ellen, you said you’re not hiring ahead of revenue. A lot of the labor market stats indicate things are pretty tight, but I’ve seen a lot of industry trade reports. That there’s also a lot of headcount reduction. So when you look at the labor market today, do you think it’s a buyer’s market for the skills you need? Or is it a seller’s market? Thank you.
Philippe Krakowsky: All right. Let me unpack that because I think most of the pieces are out there to your point. So the tech, telco and the specific entities within our world that, as I said, are taxing our performance is not new news. Over the normal course of business, there’s always revenue to be generated. And I think your budget, your existing book and then that TBG and the operators are accountable for both creating those opportunities and converting those opportunities with existing clients, as well as winning ones with new clients. And I think that the incremental drag in Q3 was really there and to a much lesser extent, that some of the larger new business did not ramp at the pace that we anticipated. I’d sort of say that we don’t like to see the delta, because we’ve obviously been on the other side of that for some time.
