Last quote by Martin Sorrell
Martin Sorrell quotes
Amazon's penetration, to most, there is frightening, if not terrifying, to some.
If you look at the competitive reaction, if you look at Facebook's reaction in terms of copying or imitating a lot of the features that Snapchat has, that's indicative of the issues that Facebook faces in relation to Snap and its growth. So you have a search war developing between Amazon and Google and you have a social media war, if I can put it that way, or market share war between Facebook and Snap. We'll see how far they go, that pales into relative insignificance to Google.
Google and Facebook dominate digital advertising. They own about 75 percent of the market. And they get about 100 percent of incremental spend at the moment. What our clients want and what our agencies and indeed our competitors' agencies want is more competition in the market place.
The strongest innovators and strongest brands generate the strongest total shareholder returns. Perhaps surprisingly, corporate structures that seem to offend customary good corporate governance may deliver better long-term results. The prospects in the UK are more mixed as the post-Brexit vote scenarios will play out over the next two years and uncertainties about the possible outcomes increase.
The four leading western continental European economies – Germany, France, Italy and Spain – let alone the Netherlands and Greece, also all face political uncertainty, although Germany and Spain are strengthening economically. In these circumstances, clients face challenging top-line growth opportunities and uncertainties.
The biggest key thing that I think Evan and his colleagues have got to demonstrate is return on investment. The number of clients say to me because of disruption … we have to make sure that the return on our media investment is considerable.
Amazon's tentacles are spreading rapidly into all areas. I think it's a defining moment in that it could well be the third force. Snap … is definitely a potential third force. The reason that Google has been successful … is that the results are very clear. Facebook is a little bit more woolly. I have always referred to Facebook as a brand mechanism as a way of building brands, rather than necessarily being about effective sales generation in the short term.
I would say in the short-to-medium term, he will probably be successful, he has to implement his policies on tax, on regulation, on spending … but the atmosphere is remarkably different … than what we have seen in the last eight years under the Obama administration for good or bad.
And the fact that America is $18 trillion of GDP … it is the biggest engine and if the biggest engine is growing faster, that ultimately is certainly good for America … but it's not necessarily bad news for the rest of the world.
I can see Snap revenue is about $400 million.
The issue on Trump is what you win on the U.S. swings, you may lose on the international roundabouts.
If the repatriation of profits is used yet again to invest in dividends and buybacks, what's the point? It's really got to be much more fundamental, long-term investment.
It does become a threatening alternative to Facebook and I think that's the big opportunity for them. We know Facebook have tried to buy Snapchat a couple of times, we know that they've made product changes as a result of Snapchat's products. I think Facebook is concerned about the potential opposition.
I think with the measurement issues, with the fake news issues, and the fraud issues that the internet faces, clients want to try and experiment.
You're in a world of uncertainty, low growth, very little pricing power, because there's very little inflation … and that eventually will bring a problem prior to the next presidential election.
We all talk to one another in this bubble here in Davos, echo chamber in London, and it's true of the East Coast, West Coast liberals. In terms of their businesses, in terms of their regulation,in terms of intervention, I think most industries favored a more Republican route … so it's a question about why were the pollsters wrong. Because nobody really told them the truth.
Number two would be Murdoch, around $2.25 billion.
Of course (political uncertainty) matters … Although I have to say we haven't seen what some of our competitors have been talking about, an impact of the U.S. presidential election on (the third quarter) in North America which continues to be quite strong.
There isn't enough investment in brand.
Given what's happening in the environment, the slow growth, lack of inflation - with the exception of the UK with the devaluation of sterling - the focus on costs and the general level of uncertainty around the world, I think it's a good performance.
The bump from it is small in the context of the overall operations. The bigger issue is what happens long term.
It's not just [giving advertisers] first look, it's trying to innovate and initiate ideas.
It's something we'd love to do more with Google and Facebook to be honest with you, but they seem to be [harder to work with]. I think less so with Google, they seem to be proactive recently maybe because some of the regulatory issues they've had to deal with. But, Facebook certainly because of their success have become a little more difficult to deal with.
The conundrum or dilemma is that what we want in business is certainty, because uncertainty is the enemy of growth, so we want clarity.
On the upturn, it usually follows as people only increase spending when they are sure of recovery. No signs of cutting yet, although the U.K. slowed after the Brexit referendum was first announced.
Generally, the environment is an uncertain one and in that context I think the first quarter was extremely good. If you're a legacy business, you're challenged by disruptors, you have zero-based cost budgeters, you've got activist investors,it's a difficult and uncertain climate and things like Brexit - we have to see what happens in June.
I feel actually a little bit more confident (now). But (Republican presidential hopeful Donald) Trump has a long, long way to go and Florida is critical not just because of its size and importance but because that is the heartland for (rival Republican nominee Marco) Rubio.
Timing is critical.