WPP shows no sign of Facebook concern as it signs deal with Buddy Media
While doubts circle about advertising on Facebook WPP Group has pushed ahead with a deal with social software firm Buddy Media and chosen it as its preferred social ad management partner for handling Facebook advertising across its various media agencies.
The news comes on the heels of General Motors and others last week raising doubts about the value of advertising on Facebook.
The deal could represent more than $200m of Facebook advertising, which is what WPP clients through GroupM last year spent.
The deal with Buddy Media will include most Group M media such as Mindshare, Maxus, M80, MEC and MediaCom among others.
WPP’s faith in Facebook ads comes against a prediction from eMarketer that social network ad revenues will grow to nearly $10bn in 2013, up from $5.54bn.
GroupM will roll out Buddy Media’s BuyBuddy to all of its media agencies and will begin training on how to get the most out of Buddy Media’s unified social marketing software services across paid, owned and earned media.
Rob Norman, CEO, GroupM Interaction Worldwide, said: “Social media success is of critical importance to our clients, and Buddy Media is the proven self-serve solution in market that has a focus on empowering agencies and being a true partner. We will continue to work with other partners but believe this consolidation will offer our clients and teams the opportunity to develop consistent high performance in a rapidly developing market.”
Michael Lazerow, CEO and Founder, Buddy Media, is unconcerned about GM’s decision to pull its ads as he sees advertising and content on Facebook being inextricably linked.
While GM said it was pulling its ads it said it planned to continue to invest in Facebook content for which it has a $30m budget.
“Every ad that you run starts as a post to your Facebook page. You post to your page and then buy the distribution of that post. They are tied together. Our bet with this is that a publishing system and an advertising system on social has to be together,” Lazerow told Ad Age.