Feeds

'Facebook, Twitter, Google: Ad companies masquerading as tech ones'

Says cross advertising man (not pickled herring)

  • alert
  • submit to reddit

The Power of One eBook: Top reasons to choose HP BladeSystem

The boss of Britain's largest advertising company has slammed Google, Facebook and Twitter for being "media owners masquerading as tech companies".

Speaking at the FT Digital Media Conference in London today, Sir Martin Sorrell, chief executive of WPP, said his company spent $2bn on buying advertising from Google last year, up 25 per cent from the previous year.

In 2012, Sorrell's firm spent some $500m of its clients' money on buying advertising from AOL/Yahoo!, $200m on Facebook and a "very much smaller amount" on Twitter.

These figures are only likely to increase, he said, predicting that by 2014 WPP will spend more on buying Google advertising than it currently does on purchasing space from Rupert Murdoch's media empire.

Of WPP's $73bn annual advertising spend, News Corporation gets $2.5bn, more than any other company.

Sorrell said:

"I do regard Google as a media owner, yes. These are media owners masquerading as technology companies. Google sells Google, Facebook sells Facebook. Twitter sells Twitter."

"If I was going to invest money in all these stocks where would I invest my money? Google and Amazon. If buying for my grandkids that is where I would put it."

Discussing the US market, which accounts for $40bn of WPP's spending, he said advertisers were spending too much cash on print advertising. Customers spend just 7 to 10 per cent of their time reading newspapers and magazines, but WPP still spends 20 per cent of its clients' advertising budget on print.

He said consumers spend a third of their time online, but advertising spend is just 20 per cent. ®

Top three mobile application threats

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.