Facebook Is Best at Branding: Sorrell

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 24 (Bloomberg) -- Martin Sorrell, CEO at WPP and David Kirkpatrick, CEO at Techonomy, examine Facebook's place in the mobile ad market and how the social network can exploit growth in smartphone usage. They speak on Bloomberg Television's "Bloomberg Surveillance."

Fundamentally, facebook is a branded mechanism and not an advertising mechanism.

Mobile searches more of an infected advertising mechanism.

Facebook is the third largest country on the planet.

It will probably become the largest country on the planet when it crosses 1.3 billion users.

It is extremely powerful and they are starting to get their act together.

Our biggest media relationship, we managed a 7 -- $70 billion media book.

Google last year was $2 billion and will probably grow.

Facebook is $300 million last year.

This year, we will probably do $400 million.

We are starting to see an increase in facebook connectivity.

Their sales force -- google has a lock on the advertising market in digital.

They have exploited that successfully.

They are in the supply as well as search.

Mobile search as well and social and video.

Is the buzz at facebook vair like when you wrote that book?

I don't see it.

The buzz has diminished but the usage has continued to grow.

Thinking of them as the third largest country in the world is an interesting way to look at it considering that none of the other countries have anything close to the ability to send a message to the entire population.

That is why martin says it is the world's best branded mechanism.

Branding is harder to do but that's what tv does.

It is longer term.

And a more substantial thing than advertising search.

If you look at facebook long term, i still see a very positive story.

There is too much pressure because of the ipo.

That really ramped up the pressure.

Which advertising to elect the best?

Do you like to spend more on the desktop advertising or are you buying into the idea of mobile?

Everybody says mobile.

The smart phone is the tipping point.

That's where we will start to see mobile engagement.

We are starting to see a little bit but it is not where we want to be.

Consumers spent 1/3 of their time on the internet and mobile.

We invest 1/3 of our revenues now but the general market is only 20%. it has a ways to go.

From profitability, in the developing world, smart phone growth is still happening.

We have data that shows time spent on facebook has steadily increased.

How about that strategy on mobile?

100 million people are using it already.

It is the internet for some of these people.

People around the world don't know there is something called the internet.

They go from no phone to having facebook on a smart phone.

Go back to the miphone - eight smart phone for $99 in china is very different.

This crowds or smart phone in china is interesting and that will be big growth for giving access to the internet and facebook for people everywhere.

What do your clients say?

They are calling upon you.

Initially, there was a great surge of enthusiasm on facebook and that has been tempered a bit.

There is this intrusion.

If you intrude facebook -- if you're doing a search and mobile or pc is much more relevant.

That initial phase has dampened down and people have become more realistic about the capabilities of facebook rather than the initial splurge.

Generally, probably the elites are using facebook alas.

-- les.

Linked in is a more closed network.

Remember small worlds?

That was very small and became smaller.

I think close to networks in the fullness of time will become more interesting when you have a defined role.

That is perfect because the founder of twitter mentions this in talks about a facebook premium.

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change