In A ‘Luvvy’ Recovery, Digital Hits 28 Percent Of WPP Sales
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Earlier this year, the world’s biggest advertising group said new media would make up two thirds of its income in three or four years.
Today it stands at 28 percent, WPP said, as it reported first-half-of-year pre-tax profit up 36 percent to £244 ($379.46) million, on three percent better revenue of £4.44 ($6.91) billion.
CEO Sir Martin Sorrell, over the last year, has cautiously refrained from embracing a 2010/11 upturn away from the recession.
But the latest WPP earnings statement does dare to say: “The results reflect the recovery in the world economy ... “The group’s advertising businesses achieved a 180 degree turnaround from -4% in the first quarter to +4% in the second quarter ... Traditional advertising has recovered sharply.”
“The expected LUV recovery - L-shaped in Western Europe, U-shaped in the United States and V-shaped in the BRICs and Next 11 - is now more LVV-shaped (LuVVy-shaped?), with the United States, in particular recovering much more strongly than anticipated.”
WPP says its OgilvyOne and Wunderman digital agencies have annual revenues of over $800 (£514.42) million and $850 (£546.57) million respectively.
Sorrell is steering WPP on a course courting two growth areas in particular - digital and emerging world markets like China and Brazil.
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Posted In: Advertising, Money, Earnings
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