Timing, Relevance Keys to Social Media Ads: Sorrell

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Aug. 5 (Bloomberg) -- WPP CEO Sir Martin Sorrell and Sri Kumar Global Strategies President Komal Sri Kumar discuss social media and digital advertising on “Bloomberg Surveillance.” (Source: Bloomberg)

Good morning, everyone.

"bloomberg surveillance." i'm tom keene.

Let's get to our morning must-read.

The former governor of hong kong writing about mr.

Putin.

Sir martin, chairman of wpp group.

Ceo.

Humble ceo.

That's right.

You just run the company.

[laughter] is russia shut down?

Our business in russia is doing well.

Russia is a big market.

An aging market.

Sanctions have had an impact.

It will have an increasing impact.

It is about amaral 2% or 3% of our revenues.

Ukraine is very small.

Russian sanctions have an impact.

Sir martin sorrell, one of our guests.

We will discuss facebook and twitter when we return.

? . . good morning.

"bloomberg surveillance" from new york city.

The citigroup tower to the left, i'm tom keene.

U.s. stocks recovered after the selloff last week.

Rices over.

We might be ready for a rebound.

A correction is 10%. we had that debate yesterday.

We have seen the 10 year yield fall below 2.5%. currently at 2.49%. crude oil stays below $100 a barrel at 9847. futures are negative three right now.

Brilliant.

And then to newsfeed, janet with your friends, romans, countrymen.

Show them selective news you can use.

And you need advertisements that no one can see.

In the summer of 2014, facebook, google, and twitter are doing great at grabbing billions of dollars in ad dollars.

Users rebalance they are you kidding me?

Is this a fad?

Our ads in social fee via -- in social media are they a fad?

36% of our revenue is now coming from digital media.

Has a compare with the year ago?

Up one or two points.

Every year, social media, online media grows faster than regular media.

They naturally can increase their share about 1%. our target is to get 45% in the next five years.

We should get there.

It's not just mature markets.

They leapfrog the pc, and smartphones -- you're going to be talking about china.

Smartphone penetration in china.

The iconic moment i think will be the flotation of alibaba.

I think it will focus even more tension on technology in china.

When you talk to your young turks, what is the best practice of doing advertising in my newsfeed when i hate to see ads?

It is irrelevant.

We are buying audiences online.

We have a platform which competes against double-click and atlas.

What we are doing is buying targeted audiences for clients.

The best practice is to find the relevant context.

So that you won't be irritated.

If you are searching for something, we display advertising, search both for pc search and mobile search.

You're looking at video and social.

It's pushing out the relevance of the advertising, the timing, and the context.

You can target a much more effectively than you did before.

You said billions of dollars are being spent.

The dominant force here is google.

$100 billion media books, google is the biggest investments at around $3 billion this year, $2.5 billion last year.

News corp.

Was around $2.5 billion.

If you've corpse -- if news corp.

And fox by time warner, they become number one.

Google is the dominant force.

I want to bring in this -- she talks about how your facebook feed suddenly looks a lot more emotional than usual.

Twitter is snarky, pinterest is bragging, facebook is earnest.

You share photos, you console each other over her life losses.

It is very emotional.

Is there going to be a knee-jerk reaction to that?

Will people get fed up?

There will be a lot of movement in these platforms.

It is extremely fashionable.

I think google, and its dominance, is because it strives across these five areas i mentioned.

From classic search, to mobile, video and social, and display advertising.

It has the breadth and coverage.

My view has always been that facebook is a branding medium.

It sets the context for brands am a rather than search, which is oriented towards effectiveness.

You have to balance the two.

People are starting to explore the emotional aspects of this.

Emotion was something that was meant to be just rooted in traditional advertising, not in online stuff.

It is interesting it is coming that way.

One other thing is the initial surge on social and mobile, digital, has relaxed.

People are now focused on value.

That article refers to advertisers looking in value, and the possibility they might be amazing some of their investment -- wasting some of their investment.

If you follow the path of the click through's, what is the proof that advertising on digital works?

Sales.

And you actually quantify that?

You can.

The sort of work we are doing, we see some of our competitors like nielsen is doing.

We very much measured tv audiences and online audiences in about 40 countries around the world.

With a non-us nielsen, if you put it that way.

What we're seeing increasingly as an ability to measure at a level that we haven't been able to do before, either in legacy media or in online media.

We will cut in here.

This text has been automatically generated. It may not be 100% accurate.

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