WPP Spending $70 Million with Snapchat
07 Dicembre 2016 - 12:10AM
Dow Jones News
Ad giant WPP is spending about $70 million with Snapchat on
behalf of clients, said WPP's chief executive, Martin Sorrell, at
the UBS Media and Communications Conference on Tuesday.
The ad revenue is significant for Snapchat parent Snap Inc.,
which is preparing for its initial public offering. Still, it's
only a fraction of the amount that WPP spends with more established
players, including Facebook, Google and traditional media
owners.
WPP in late August said it continued to boost spending with
Facebook and Google, largely due to an increase in spending on
mobile search. The company this year expects to spend about $5.5
billion with Google, compared with $4 billion last year, and $1.7
billion with Facebook, compared with $1 billion last year, said Mr.
Sorrell at the time. Facebook could be the second
Mr. Sorrell at the UBS conference said that WPP will continue to
increase its spending with Facebook, which has been "trying to
undermine Snapchat."
"Clearly there is some concern [by Facebook] about the
penetration Snapchat is getting," he said.
WPP is among the ad companies attracted to Snapchat's young
following, but Facebook shouldn't feel too threatened yet. Snapchat
is an even smaller piece of WPP's ad-spending pie when traditional
media is factored in.
"Traditional media owners themselves could put together an
effective third force to counter the duopoly of Google and
Facebook," said Mr. Sorrell.
WPP spends $750 million to $1.75 billion with a number of
individual traditional media companies, and $2.2 billion alone with
News Corp, which owns The Wall Street Journal.
WPP owns GroupM, which is the biggest network of ad buying
agencies in the world.
Write to Alexandra Bruell at alexandra.bruell@wsj.com
(END) Dow Jones Newswires
December 06, 2016 17:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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