Three reasons why there will be a brand-new normal of low growth in adland

In 2014, WPP invested $25 million in ad exchange AppNexus, a competitor to Google’s DoubleClick. Both are types of technology that will let publishers display advertising on their websites, in addition to allow advertisers in addition to agencies to control where in addition to when their ads are shown, as well as gather data on how much they are clicked on, in addition to who by.

WPP also suggested that will the rise of management consultancies such as Accenture in addition to Deloitte Digital buying ad agencies may have had an impact, though This specific questioned whether they could compete creatively.

“Where the consultancies may have made some inroads will be their focus not so much on the digital area, however more importantly on client concerns about cost. Very few CEOs will resist the suggestion that will they may be overspending in addition to the promise of an audit or review that will will only cost a proportion of any cost savings,” the statement said.

WPP said its clients were also contending with disruption by companies like Airbnb in hospitality in addition to Alibaba or Amazon in distribution, in addition to dealing with “zero-based budgeting,” an accounting tactic where business expenses have to be justified for each brand-new financial period. This specific will be a method used by consumer packaged goods (CPG) companies such as Reckitt Benckiser or Coty, with the CPG sector creating up about 30 percent of WPP’s revenue.

“I think This specific will be in This specific low growth world, or relatively low growth world, where there will be very little inflation, where there will be very little pricing power in addition to there will be a great focus on cost,” Sorrell explained to CNBC’s Squawk Box Europe This specific morning.

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