Internet Is Key Factor In Depressed UK Ad Market

The rise of the internet is a key factor in the depressed state of the UK advertising market, according to WPP chief executive Sir Martin Sorrell.

The UK has a significantly higher proportion of advertising online than in many other countries, which has been an additional drag on the more traditional advertising media.

“Google said we spend 20% of our time online, so in theory, and I stress in theory, that’s where the internet market should go. It shouldn’t just be 14%, it should be more than that,” he said speaking from New York.

“We have got a very competitive market with BBC and Freeview, in effect subsidised public corporations, which makes it more competitive than most,” he said. “Then there are special issues facing ITV – investment in product, no chief executive.”

He said although it was too early to make predictions for 2008, he was expecting growth to be boosted by spending on the Beijing Olympics and the US presidential elections.

WPP: 020 7408 2204 www.wpp.com