Advertising and communication giant WPP’s shares dropped after the group’s lower than expected third quarter result hit the exchange. WPP reported a slightly improved performance in UK but that did not help the slid as fears of client’s cumulative less spending on the agency persuaded the investors. Sir Martin may assure the investors that credit crunch has minimal effects on advertising budgets, but seems no one is paying heed. WPP, world’s second largest advertising and marketing organization which owns brands like Hill & Knowlton and Ogilvy & Mather faired poorly in North America.
In the third quarter, in UK, however WPP has bagged three heavyweight accounts BT, Boots and insurance firm Admiral. The combines value of the deals are approximately £703 million.
Sir Martin Sorrell, CEO of WPP is upset not only with his firm’s performance but with overall advertising market in 2008. He thinks 2009 may even be tougher year, as a new US presidential administration is undertaking painful (read: less show off) measures to correct economic imbalances early in its term.
Alli’s not that gloomy and WPP is hopeful for the next year. Beijing Olympics and European football championships are expected to spruce up advertising in 2008.
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