Facebook Inc (FB) and Google Inc (GOOGL): Major Players in Advertising Industry

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In an interview on Bloomberg TV’s Bloomberg Surveillance, which included the President of Sri Kumar Global Strategies, Komal Sri Kumar, and WPP CEO, Sir Martin Sorrell, was addressed the topic of advertisements in social media and their future. Google Inc (NASDAQ:GOOGL) is currently, the dominant force on the market, according to Sorrell. Google also offers much scope for advertising given its search platform. However, Facebook Inc (NASDAQ:FB) also offers its own benefits, given the breadth of its reach with video, search, mobile, and social capacity.

Facebook, is Facebook a good stock to buy, Sir Martin Sorrell, advertising,

“[…] 36% of our revenue is now coming from digital media. Every year because social media and online digital media grows faster than legacy media, it naturally increases its share by about 1%, so our target is to get to 40%-45% within the next five years or so we should get there, because we are getting that 1%-2% every year […],” Sir Sorrell said.

He continued to explain that his growth was taking place not only in mature markets, but also in fast-growing markets due to the leapfrogging of the PC. Given the smartphone penetration in China, which has driven technology in the country. “The iconic moment for a lot of people I think will be the flotation of Alibaba. That will focus even more attention on technology in China,” Sorrell added.

Sorrell believes relevance is key to reduce audience irritation at seeing irrelevant and unsolicited advertisements. WPP buys targeted audiences for its clients, focusing on finding the relevant context and the correct timing for the ad.

Addressing Kevin Roose’s newspaper article on the emotional nature of Facebook Inc (NASDAQ:FB) and the “snarky” aspect of Twitter Inc (NYSE:TWTR), Sorrell agreed that emotional aspects, earlier part of traditional media, has made its way into social media. He also said that he thinks Facebook Inc (NASDAQ:FB) is a branding medium, although the initial surge from advertisers has now subsided to be focused on value.

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