WPP chief executive Sir Martin Sorrell predicts it will be difficult for advertising agencies and other companies to profit from apps, though mobile will become a powerful advertising medium.
Though the app market has tripled in size to $15 billion, the advertising industry overall is about a trillion dollar industry, he notes.
Asked how the ad industry can make the most of the boom in apps, he was cautious. "I think the real answer is 'with difficulty' because it's not dissimilar to what you're seeing with newspaper and periodicals."
The amounts of income are becoming more significant but are highly fragmented, he said. "You have a vast array of applications and a vast array of designs and consumer loyalty is quite fickle ... It's very volatile."
VIDEO: Sorrell on apps, mobile and social networks
Wednesday, February 16, 2011
Mobile Will be a Powerful Ad Medium, But Agencies Will Struggle With Apps
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
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