WPP, the world’s largest marketing group by revenue, has taken a beating through the economic crisis. Its clients are demanding lower rates, and it has lost huge accounts with companies like Bristol-Meyers Squibb, Nokia, and Wrigley. WPP’s Chief Executive, Martin Sorrell, recently spoke to The Wall Street Journal about the challenges facing his company, and of the changing face of the marketing and advertising industry:
The advertising industry “can return to what it was, but it’s not going to be the same… It’s not going to be in 30-second TV ads; it’s not going to be in newspaper or magazine ads; it’s going to be in Russia, India, China, Vietnam … and digital.”
In fact, digital advertising now accounts for a full 25% of WPP’s budget. This figure may be more the result of the massive contraction in print advertising than a new-found belief in the efficacy of online advertising, but, given Sorrell’s comments, it is clear that digital advertising is poised to capture a greater share of WPP’s future activities.
via WPP Takes Wary Stance – WSJ.com.
