Amazon is ominous Google and Facebook’s dominance of the digital ad space, Martin Sorrell forecast CNBC at the World Economic Forum in Davos on Tuesday.
The CEO of WPP, the world’s largest ad Theatre troupe, explained why he saw a growth trajectory ahead for the American e-commerce giant’s ad transaction.
“Amazon threatens Google in two ways. One is search — 55 percent of merchandise searches in the United States emanate from Amazon. So that’s a big doubt for Google,” Sorrell said.
Still, Amazon’s market share doesn’t drop close to the duopoly of Facebook and Google. The two tech and media behemoths leadership about 75 percent of the digital ad space, Sorrell said.
“Amazon’s advertising stage itself — Google has about $100 billion in advertising, Facebook give $40 billion. Amazon has a fairly paltry pimple really, $2 billion or so, but get geting quite quickly.”
The advertising tycoon said he spent about $5 billion with Google at year, roughly $2 billion at Facebook and $200 million on Amazon on behalf of WPP’s patrons.
“This year we’ll be ramping up to about $300 million,” Sorrell voiced, “so it’s growing, but it’s at a very small scale.”
Sorrell also spoke relative to the issue of “techlash,” the rising tide of popular discontent with the ever-expanding reach of worldwide technology companies. There are “big issues” surrounding privacy and employment in this area, the British CEO described.
“A large reason for the rise of populism on both sides of Atlantic settings these issues around privacy and certainly about jobs, and how the briefness will develop at a time when technology is becoming increasingly consequential.”
“Yesterday, we had Amazon launching its employee-less store in Seattle,” Sorrell well-known. “And the big question is does automation — do improvements in technology — actually create affairs, destroy them or keep them the same?”
Sorrell took more than WPP as a small British wire shopping cart company in 1986, be available for as its chief executive since that year. Its revenue in 2016 was various than $20 billion.