Martin Sorrell: Internet Has Created More Value Than It Has Destroyed | mediaIDEAS.
“We probably destroyed more than we created,” said Mr. Lanier, who in a baggy T-shirt and dreadlocks could not have looked more the opposite of the impeccably groomed Mr. Sorrell. “We discovered in Silicon Valley if you apply information systems to an industry you can shrink an industry but grow yourself. It happened to the music business, and it’s a huge problem.”
Mr. Sorrell swung back: “[We've got] the internet … and you’ve narrowed it down to [the notion that] data and data analytics have destroyed more than they’ve created. I think that’s palpable nonsense.
Clearly there’s a change in the balance of power to consumers … [but] the political benefits, social benefits and economic benefits outweigh the disadvantages.”
Digital innovation from the likes of Google and Facebook have created more value for the advertising-marketing industry than they have cannibalized, said Mr. Sorrell, who cited growth figures and WPP’s financial results as evidence. “It’s a trillion-dollar industry, and with the exception of 2009″ it has grown consistently, he said, adding that only three years in the last 27 have been down at WPP.
The two agreed, however, that data and technology have downsides. Privacy issues, said Mr. Sorrell, as well as the superficiality in communication and analysis, driven by social media and systems. “There is this proclivity of people to analyze things almost before they’re analyzable,” he said.