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

[via Adage]


  1. 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..

  2. 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.

  3. No question that he is conveniently leaving out some important data … profits. Nevertheless, still a stark reminder of the ad industry’s problem.

  4. 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.