Sir Martin Sorrell talks about data privacy issues
After Facebook’s reported data breach, CEO, WPP, Sir Martin Sorrell emphasised on the importance of clearly communicating to users how their data will be used
Speaking at The Great Festival of Innovation in Hong Kong, Sir Martin Sorrell, CEO – WPP voiced his concern over Facebook’s reported data breach via political analytics firm Cambridge Analytica, emphasising the importance of clearly communicating to users how their data will be used. “People have to understand precisely what they are letting themselves in for. We can’t carry on in this way,” he said.
During his discussion he explained to fellow journalists that even though only 50 million people were allegedly misled by Cambridge Analytica, that is cause enough. He said it is essential to make your consumers understand what they are getting themselves into. He added that the technology businesses are the ones in the spotlight and so are many businesses particularly within WPP hence building services around consumer data along with low confidence from consumers and regulators isn’t an ideal environment.
Sorrell argued that while GroupM had been ‘violently in favour’ of measures being put in place around brand safety and other issues that have led to a mistrust in digital, there will inevitably be a greater scrutiny from regulators. Talking about how brands will stop using Facebook, Sorrell said there was concern but he had confidence that Facebook would turn it round.
He explained, “I know that right to the very highest levels of companies, there are huge concerns, which is obvious given the scale of the issue and they will fix it. And we also focus on Facebook but there is Messenger or Instagram, those two are incredibly successful platforms, so Facebook is not just Facebook. It is three brands. I am totally convinced that Mark and Sheryl and everyone else will do what is necessary to make sure it works. Now, the question is - does this trigger the authorities and governments, which would make life more difficult.”
Facebook has already announced this week that it will improve privacy settings for users. It then followed that announcement with the news that it will also shut off the capability to use third-party data when targeting ads. For Sorrell, the issues faced by the duopoly of Google and Facebook over brand safety and now data have potentially helped with better cooperation with agencies.
He said it is all about working together and recent analyst presentations from WPP have hinted to wider problems hindering the growth of agency networks, such as a long-term disruption from tech and short-term issues such as zero-based budgeting.
“I think we have just managed to build our relationship with them. They are our biggest destinations; Google is $5bn of our media billings and Facebook $2.1bn, if Fox and Disney come together they would be about $2.7/3bn. But we’ve managed a modus vivendi, we’re building things with them. For example,we’re working with Google on the next billion consumers, we are doing creative with Facebook, with Amazon we have basically an agency in Seattle to deal with Amazon, we bought Marketplace Ignition and we’ve expanded the service. Tencent and Alibaba we’re also doing stuff with. The last time I was here in China, we had a big day with Alibaba so more and more things are happening but I think we have a modus vivendi with them,” he explained.
“We’ve talked about "frenemies" and then friendlier "frenemies" and then flexible friends and I think there is a partnership. Both Google and Facebook have had issues to deal with and that may have made them more receptive than before, I don’t know. The net result of all this is increased cooperation,” he added.
During his discussion he explained to fellow journalists that even though only 50 million people were allegedly misled by Cambridge Analytica, that is cause enough. He said it is essential to make your consumers understand what they are getting themselves into. He added that the technology businesses are the ones in the spotlight and so are many businesses particularly within WPP hence building services around consumer data along with low confidence from consumers and regulators isn’t an ideal environment.
Sorrell argued that while GroupM had been ‘violently in favour’ of measures being put in place around brand safety and other issues that have led to a mistrust in digital, there will inevitably be a greater scrutiny from regulators. Talking about how brands will stop using Facebook, Sorrell said there was concern but he had confidence that Facebook would turn it round.
He explained, “I know that right to the very highest levels of companies, there are huge concerns, which is obvious given the scale of the issue and they will fix it. And we also focus on Facebook but there is Messenger or Instagram, those two are incredibly successful platforms, so Facebook is not just Facebook. It is three brands. I am totally convinced that Mark and Sheryl and everyone else will do what is necessary to make sure it works. Now, the question is - does this trigger the authorities and governments, which would make life more difficult.”
Facebook has already announced this week that it will improve privacy settings for users. It then followed that announcement with the news that it will also shut off the capability to use third-party data when targeting ads. For Sorrell, the issues faced by the duopoly of Google and Facebook over brand safety and now data have potentially helped with better cooperation with agencies.
He said it is all about working together and recent analyst presentations from WPP have hinted to wider problems hindering the growth of agency networks, such as a long-term disruption from tech and short-term issues such as zero-based budgeting.
“I think we have just managed to build our relationship with them. They are our biggest destinations; Google is $5bn of our media billings and Facebook $2.1bn, if Fox and Disney come together they would be about $2.7/3bn. But we’ve managed a modus vivendi, we’re building things with them. For example,we’re working with Google on the next billion consumers, we are doing creative with Facebook, with Amazon we have basically an agency in Seattle to deal with Amazon, we bought Marketplace Ignition and we’ve expanded the service. Tencent and Alibaba we’re also doing stuff with. The last time I was here in China, we had a big day with Alibaba so more and more things are happening but I think we have a modus vivendi with them,” he explained.
“We’ve talked about "frenemies" and then friendlier "frenemies" and then flexible friends and I think there is a partnership. Both Google and Facebook have had issues to deal with and that may have made them more receptive than before, I don’t know. The net result of all this is increased cooperation,” he added.
