Sorrell: What will happen to Google?

Google’s regulatory pressure in Europe and market restrictions in China are marketers number one worries, according to WPP CEO Martin Sorrell.

“The most important issue in the industry is what will happen to Google?” the advertising executive said.

Google isn’t just facing off against government regulations its also battling a more robust competitive field with Facebook and now, Amazon is looking to take a bite out of its hold on global ad revenue.

Google’s overall market share is projected to fall in 2014 to 31.5 percent of the $140.2 billion global ad dollars spent, down from 2013’s 31.9 percent, according to eMarketer.

Facebook on Monday rolled out a revamped Atlas platform that has the ability to track a single consumer across devices. At the same time, Amazon is pushing hard beyond its eCommerce roots to grow an advertising business on its platform.

Google’s cost per click rate has fallen- a result of a shift to lower priced mobile rates, as rivals have improved their offerings.

Amazon spent $1 billion on gaming site Twitch in the past few weeks in part to grow its ad business which is estimated to be worth around $1 billion.

Sorrell, moderating a panel called “Winning,” at Advertising Week, pressed Amazon’s Lisa Utzschneider, vp global ad sales, about its plans to compete more aggressive for advertisers.

Noting Amazon’s data partnerships with major grocery stores, including Kroger and Tesco, Sorrell pressed Utzschneider for information on what customer data the Jeff Bezos-owned e-marketer has and how it was using it.

The effort didn’t get very far.

Utzschneider deflected the question, saying, “There is plenty of third party data on customers. They do search quite a bit on Amazon looking for products.”

The Amazon global ad sales executive said the firm is encouraging companies who don’t sell products on Amazon to advertise. She mentioned a robust marketing partnership with Japan automaker Nissan.

Pointing to another potential Google weakness, Sorrell noted the search giant is under pressure in Europe where the European Union is looking for the Mountain View, Calif., company to alter its search practices.

Google’s weakness is one reason for Facebook’s Atlas revamp, noted Sorrell. Google is still king of the hill however and boosted advertising revenue by 25 percent in its most recent quarter.

eMarketer reported in June that Facebook is gaining share in mobile advertising, growing from 17.8 percent of all ad dollars to a projected 22.3 percent in 2014. Google’s share of mobile, currently at 50.4 percent, will drop to 50.2 percent in 2014, according to eMarketer.

Touching on the high value of sports rights, Sorrell turned to a second panelist, Eric Johnson, ESPN’s executive vice president global multimedia sales, to get his thought on whether the FIFA World Cup — scheduled to take place in Qatar in 2022, might land in the US.

It’s possible, Johnson replied.

Sorrell suggested that the US may also win a bid for the 2024 Olympics given concerns by the IOC that Brazil, set to host the 2016 Summer Games, is ill-prepared to produce a Grade A Olympics.

If those concerns come to pass, it would mean two consecutive Olympics — following the 2014 Winter Games in Sochi, Russia, would be less than most desirable.

The IOC, then, would seek out a host country surely u[p to the task, Sorrell hinted.