MarketingVOX: The proportion of WPP Group’s internet advertising business will double within 10 years, its founder and CEO Sir Martin Sorrell tells the New York Sun. And he’s particularly bullish about the industry as a whole for the next couple of years, citing the Beijing Olympics and U.S. presidential election, which he says will add two percent to overall ad spending – or some $24 billion of the $1.2 trillion worldwide.
Sorrell says about $1.5 billion of WPP’s 2005 revenues of $10 billion were related to online: “About 15 percent of our business is internet, and this will be 30 percent in 10 years,” he is quoted as saying. He also touches on the disruptive Google phenomenon.
“We’re Google’s third-biggest customer. They want us to buy more. At the same time, they are threatening to compete with us by setting up electronic platforms to buy and sell media,” he is quoted as saying.
He says some 82 percent of WPP’s revenues are from North America, the U.K., and elsewhere in Europe, but the fastest growth is in emerging Brazil, Russia, India, and China (BRIC). By 2015, he estimates, 40 percent of WPP’s revenues would be generated in Asia – just from existing operations.
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