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Media Planning & Buying

Martin Sorrell answers burning industry questions

Posted by Rich Cherecwich on November 04, 2009 at 12:15 PM PDT

iMedia talked to several industry leaders to see what they wanted WPP chief executive Sir Martin Sorrell to discuss in his ad:tech, New York keynote. Following a lengthy speech about the future of the economy and WPP's plan for the next half-decade, Sorrell took the time Wednesday morning to answer a few of our crowd-sourced questions.

Ty Braswell: "If you had the power to change anything in the evolution of marketing, what are the three things you would do to move mobile advertising to its full potential in our industry?"

Sorrell: The biggest disappointment is that mobile advertising has not moved successfully as quickly as we'd like to see it. It's enormously attractive to clients. In Germany, BMW advertised snow tires, because everyone was required to have snow tires. They linked mobile advertising to where it was snowing, and snow tire sales went through the roof. All very sexy stuff, but it doesn't get any traction.

The development of smart phones and consumer usage of mobile are certainly up. We need further advancements of technology and greater harmonization. The mobile operators have not seen common interest in getting this together. Last but not least, has to be shift in mobile budgets among client.

Carnet Williams: I am interested in finding out where Sir Martin Sorrell feels online advertising is headed given the growing importance of social networking sites, and the fact that display ads don't perform well there.

Sorrell: This relates back to what I said before. Online has accrued 20 percent of budgets quite quickly. By the time we'll be spending more time online, up to one third of our time, even if it accounts for 20, 25 percent of budget, online might get even greater traction.

Hooman Radfar: What is the role of the agency in a changing advertising technology landscape?

Sorrell: The company [WPP] has changed very significantly. We don't think we're going in the wrong direction, it's different. It's about more than creativity in one way, shape, or form. We think technology is at the heart of what we're doing. When we acquired 24/7 Real Media, we were embracing technology in a way advertising agencies had never done before.

I don't think we're going to hire large numbers of Ph. D's, but we do think technology is front and center in the importance. We wouldn't agree that it's about creative in a traditional sense, but it's about creative in a much broader sense.

John Ardis: I'd like to hear him address how he sees large agencies being able to maintain the critical objectivity that marketers are looking for when they now own media, plan media, place media and measure media.

Sorrell: Agencies plan media and place media, but to my knowledge, they don't own media in the sense Google or Microsoft or GE own media.

In one market in Spain, we own part of a TV station. These areas are going to become much more blurred in future. Agencies will be much more involved in content as lines between advertising and editorial become much more blurred.

In relation to traditional media industry, we need to get consumers to make traditional models viable. We need to get consumers to pay for content they are willing to pay for.

There has to be a winnowing out and a consolidation. The Great news about new media is its one to one. Bad news is that it's one to one too. We need a plan where people are willing to pay for content.

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