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Google Sir Martin Sorrell IAB Engage

Sir Martin Sorrell "paranoid" on pace of change in technology and still sees Google as a "frenemy"

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By Jennifer Faull, Deputy Editor

October 15, 2014 | 3 min read

Sir Martin Sorrell, chief executive of WPP, has said that one of the most “frightening” challenges in a time of digital “hyperactivity” is the pace of change in technology, and he has to be “paranoid” to deal with it.

Speaking with IAB chairman Richard Eyre at Engage 2014 in London, Sorrell discussed the growth in content – claiming WPP is now the biggest commissioner of content in the UK – as well as its investment in data and media, including programmatic.

He described all three as vital to the company’s future success.

Asked what challenges he faces, he referred to comments made yesterday (14 October) by Google chairman Eric Schmidt.

“Schmidt gave a speech and said the biggest threat to Google was Amazon and then checked himself and said it’s the garage start-up, because that’s where it was 15 years ago.

“It’s the same with us. It pays to be paranoid. And you have to be paranoid because you just don’t know what’s going to happen with the rapid changes not just in terms of consumer behaviour but in the structure you operate in.”

He added that the industry mustn’t underestimate the Chinese when it comes to their hold on the market and the influence it will have on a global scale in the future.

"Amazon and Google are the two big gorrillas, but the biggest elephant in the room is Alibaba. We say the Chinese copy [technology]; think again. If they do steal or copy at the beginning they certainly get themselves to a stage where they don't."

He reminded the audience that Alibaba is a $200bn market cap company.

"It's bigger than Facebook, it's half the size of Google. And you have others behind it. These are powerful companies on a world stage. True, they are protected by the Chinese state, but don't underestimate the dedication and ability to moving the model outside of China."

Discussing its relationship with Google, Sorrell said they are still “frenemies”, although less so than in recent years.

“We just had a business review with Google two days ago. And we will hit about $3bn with them this year. We've done well over $2bn in the first half,” he said, explaining the majority of growth has come from search and video.

However, he added: “There is still residual concern among agencies and increasingly amongst clients as to Google’s plan.”

Immediately following Sorrell’s presentation, Eileen Naughton, managing director of operations, Google UK and Ireland, took to the stage and said Google “definitely sees WPP as a friend”.

Google Sir Martin Sorrell IAB Engage

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