« Some Context on WSJ, Dow Jones, and the Bancroft Family | Main | Online Ad Spending Still Too Inefficient »
Latest Stories
- Me Media: CNBC Power Lunch Today
- Bubbles are Good For You Because ... They Are
- Quote of the Day: Commodities Markets
- San Diego Homes Bottoming?
- The Myth of the Angel Investor
May 2, 2007
Google vs the Ad Market
A nifty factoid on the ad market, courtesy of WPP Group CEO Martin Sorrell in a recent speech:- Google has revenues of $11 billion, and a market capitalization of $150 billion
- The top four advertising companies have combined revenues of $33-billion, and a market cap of $50 billion
Sphere It
| 
Digg it
| 
Bookmark it
| 
Stumble it
How courteous of him indeed - why doesn't he try making the kind of profit for his company that GOOG does though? Assuming the Big 4 in advertising are OMC, IPG, PUB, and WPPGY, the revenues and market caps are as he states, but he conveniently leaves out that their COMBINED Net Income is HALF of Google's - and Google generates that N.I. on a third the sales that the Big 4 have. Dude.
No question that he is conveniently leaving out some important data ... profits. Nevertheless, still a stark reminder of the ad industry's problem.
Before moving into agency Google's search engine is its own vertically integrated medium. This is a non-quantifiable but extremely important metric that figures into revenue, profits and market cap.
Which shows that it is always possible to do someone else's staid and chugging-along business in a new, more profitable and valuable way..