Internet will not destroy traditional media says Sorrell

by Mark Banham, Brand Republic 02-Jun-06, 09:00

LONDON - Sir Martin Sorrell, chief executive of WPP Group, says the internet will not displace traditional media as the main way advertisers promote their products.

Writing in The Times today, the boss of the world's second-largest marketing services network, which owns media agencies MindShare, MediaCom and Mediaedge:cia and creative agencies JWT and Ogilvy & Mather among others, said: "There will be constant competition between old and new [media].

"Slowly, the new media will cease to be thought of as new media; they will simply be additional channels of communication. They will earn a well-deserved place in the media repertoire."

However, Sorrell said that when it comes to the internet's power to impact on traditional media channels, online technologies would "almost certainly" not replace other media as significant routes to market for advertisers.

His comments come on the back of a report this week by WPP's pooled buying unit Group M that said web ad revenue is now the third biggest revenue generator globally behind regional newspapers, currently in second place, and television still in first place. The report estimated that internet ads would account for 13.3% of the £12bn a year media ad market by December 2007, with national newspapers marginally behind on 13.2%.

Group M also forecasts a 39% rise in internet ads, compared with a 9% decline for national newspaper ad revenue over the 18 months to the end of 2007. It predicts that by the end of 2007, national newspapers' share of the market will drop by almost two-thirds of its share in 2000.

Group M combines the buying might of MindShare, MediaCom, Mediaedge:cia and Asia Pacific-based Maxus.

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