Tuesday, 1 November 2011

WPP agencies spend $1.5bn a year with Google

"Sorrell says WPP agencies now spend $1.5 billion (£930 million) a year with Google globally, roughly double what they spend with Rupert Murdoch's News Corp.
Google's UK revenues - a good paradigm for digital advertising as a whole given the internet search giant's dominance - surged 21% in the last three months. Contrast that with Britain's TV ad market where growth has been anaemic since the spring and is likely to end the year close to flat.
France's Publicis Groupe, owner of agencies such as Saatchi & Saatchi and Starcom MediaVest in the UK, says that globally, 56% of its revenues from financial services clients are now spent on digital media. Only 44% goes to what it calls "analogue" media.
Other clients remain more committed to traditional media such as TV, press, radio and outdoor because of its effectiveness at brand-building. Consumer goods firms only spend 20% on digital and 80% on analogue.
For now, the big marketing and communications holding groups are coping. "What you lose on the TV roundabout, you gain on the swings with digital," says Sorrell."
Source:  The Evening Standard, 31st October 2011

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