WPP sees internet growth as profits rise

From: Mark Montgomery <markm_at_gwin.net>
Date: Fri, 19 Feb 1999 05:49:21 -0600 (CST)

I thought this message from our new premium
service might be of interest.

A message from GWIN Pro's LOOKOUT! -
E-Business
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WPP, the leading
advertising agency, which owns the advertising
agencies Ogilvy & Mather
Worldwide and J Walter Thompson,
reported stronger earnings in part due to
increased use of the
Internet as an advertising medium.

The company said a
group of key media owners were working
together to drive up the price of
advertising on network
television, so they have been moving more clients to
the Net,
presumably for better value.

"When we come back this time next
year we will be reporting
significant growth in our Internet operations."
Martin Sorrell,
WPP chief executive officer

A significant statement
considering the company increased its
global market share from 5% to 6%
over the past year.

Source- Financial
Times
http://www.ft.com/hippocampus/q12cdae.htm
(Registration required)

~~

I find it extremely interesting that in the face of new
competition in cable and new media, that the major networks
would force prices up. We follow 20 industry clusters,
including media, and the strategy behind the top five
networks is obviously to divvy up global market share
between a handful of players. Lately this has been extended
to portals on the Net of course which could well wind up to
be a very expensive lesson, unless they are successful in
maintaining exclusionary electronic distribution channels in
the OS and/or browsers.

I find it curious why major agencies would wait until those
same media networks gain similar ad share on the Net before
getting serious. Is it comfort zones, incestual
relationships, or just ignorance?

Mark Montgomery
Founder/CEO

http://gwin.net
"Where the Net and Work Converge" TM
Director of Marketing
IMS Inc.
vivian_at_imssoft.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Providing back office systems to mail order
and distribution companies since 1980 - Now a
leader in e-commerce solutions.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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Received on Fri Feb 19 1999 - 08:07:21 CST