Google To Get $5B Of WPP Clients' Budgets This Year, Says Sorrell

WPP CEO Sir Martin Sorrell said on the company's third-quarter earnings call Monday that the agency's holding companies will spend at least $5 billion of its clients' budgets this year on Google advertising, according to one report. 

Sorrell praised WPP's relationship with Google, according to Business Insider (BI), which reported that he added "Google search and YouTube video continue to be very powerful mediums, particularly in high-penetration TV markets."

Some issues that Google has dealt with with regard to regulation and taxation in Europe "probably made Google more responsive" in the way it works with advertising companies, according to the BI. 

WPP spent about $4 billion with Google in 2015.

Internal estimates of net new business agreements during the third quarter of 2016 for creative came in at $222 million and media at $1.9 million, according to company documents. Revenue in the quarter from electronics, retail, telecommunications, and travel and airlines grew by more than 10%. Automotive, food and government grew by 5% to 10%. Computers, drinks, financial services, media and entertainment, oil, and personal care and drugs grew by less than 5%.

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During the earnings call, the BI also reports that Sorrell said he would like to see Facebook provide greater access to its data to justify why advertisers should increase budgets with the social network.

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