Clients of WPP, the world's largest advertising firm, spent $90 million on Snapchat last year, helping the ephemeral messaging app to become a threat to Facebook, chief executive Martin Sorrell told CNBC on Tuesday.
WPP started off 2016 forecasting clients would spend $30 million on advertising on Snapchat, the app owned by Snap Inc. Later in the year, WPP upped its forecast to $60 million and Sorrell said in December that clients were spending $70 million. But the boss of WPP told CNBC that 2016 spending on Snapchat by clients was actually $90 million.
Based on this figure, Sorrell said forecasts about Snapchat's revenue last year are likely to be higher than what the market currently expects. Several media reports note Snapchat's revenue in 2016 was forecast to be $350 million, but Sorrell notes that if WPP clients spent $90 million out of that, it was likely that the social media company's figure would be higher.
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