Martin Sorrell: ” The Web is promotional media”

Who?
Sir Martin Sorrell, CEO of WPP

Do users hold the social media but in terms of agencies?
The agencies were désintermédiées by the users. The process of production of newspapers does not have any more a direction per hour of Kindle and a iPad. For the nostalgic ones of paper, which likes to turn the pages, there is even software which recreates the experiment. The distribution of newspapers on Kindle is more logical and effective. The newspapers and the magazines will disappear, that we want it or not. Trinity Mirror lost 33% of its incomes in three years. At the rate/rhythm of current decrease, in five years the newspapers will have disappeared. The gouvernemants will they support the media supplied with their readers? Publicities of Superbowl are UGC (User Generated Content), the crowdsourcing still will intensify. The best publicity of Superbowl was that of Google, and it was realized by one of our creative that Google has us piqué. There was a debate with the intern to know if Google were to invest 2,5 million dollars in purchase of tele space. And you see, traditional publicity even gained this mark.

– To control are ITV and not Google what that has of the direction?
Europe has magnifying glass notches it at the time of the repurchase of Doubleclick. The pressure on ITV is too strong. The BBC has great resources and does not undergo the concurerntielle pressure of the market. In Spain, the government softened the competing rules for fusion Prisa Telecinco. And the giants of the Net have cash and make acquisitions each week.

It Social media will it replace the COM corporate?
Everyone rented the countryside of Obama, but it was balanced between traditional media and social media. It is stupid to isolate the digital media from the others.  All that approaches and will amalgamate quickly. For me, the Social media is very fragmented. The Web is promotional media more than one media of construction of mark

Keynote

“The year 2009 was terrible. But the public relations activity (WPP is the head office of H and K, note) was less affected than publicity, in the recession which we have known for five years. Today, 25% of our incomes are digital, that is to say 4 million out of the 40 million incomes of the group. Soon, a third of the incomes will be digital. But the digital one weighs probably more. In the investments of the advertisers, the digital one (PC, video, search) weighs 12 to 14% of the budgets. And yet, the Internet accounts for 20% from the budget time according to Kantar Média, and 28%, according to Morgan Stanley. In China, certain measurements count even 70% of the time spent on line. China represents a formidable opportunity, with its 700 million telephones. With this shift enters the practices of the consumers and the investments, how to encourage our customers to increase their budgets into digital? Certain advertisers or leaders of press groups are like me a little vintage and there is a natural resistance to the change. I am not a geek I would not look at a match on my mobile phone. How to call into question the practices acquired during a whole life? We know which KPI television propose; With the crisis, it became less expensive. But it is Google which became the greatest media last year in Great Britain. In Denmark too. The British market very digital thanks to the dynamism of the E-trade and also to that of the BBC, is undoubtedly financed by our taxes.  But the United Kingdom is atypical in Europe. Italy and Spain have for example a less strong penetration of Internet. We are slow in the adoption of the mobile like media, whereas China Mobile, and its 500 million subscribers, weighs the population of the United States twice.

The other problem is the least creation of value (” downsize”) of the digital one. Google has a spectacular market cap. Facebook became the third country of the world of many inhabitants. We know that Internet is more measurable the other media. But for the customers, the measurement of the impact of digital is a headache. Each agency of WPP must build its digital KPI. The geography and technology dominate our trades. We must invest according to same the methods as the capital risqueurs. Last Monday, we took 10% of participation in an actor of the E Trades. Chief marketing officer becomes the chief integrating officer. Our customers have multiple platforms and multiply the faces which they present to the consumers. It is not effective. We have acquired aussis 24/7. With Doubleclick, our business is to make the API ones.  We will not buy waiters. We are not competitor of Google Yahoo Facebook, they are” friendemy” (contraction of friends and enemies). The entry of Google in the networks very high banc is not an act of RP but a true strategy.  PR are a business much more serious than it was not. When we began, in 1985, it “who you know was a business”.   We know that a good article on WPP is more profitable than a publicity. And the growth of the social networks offers still more opportunities. But there is also the risk of a commercial invasion.

Source: CB WebLetter

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