Sir Martin: It's been
a rough year for us
WPP chief likens shape of the recovery to an L
By Louisa Ada Seltzer
Aug 26, 2009
Economists may think the worst is behind us in this recession, but media people continue to be less optimistic.
Earlier this week, Media Life published results of a reader poll finding that most respondents believe that recovery in the media economy won’t begin until second quarter 2010 or later.
Yesterday the head of the world’s biggest advertising group, Sir Martin Sorrell, seemed to agree that recovery is still a ways off.
Discussing WPP’s first-half results, which saw profits fall by nearly half, Sorrell told reporters that despite some big-ticket events in 2010, including the World Cup and Winter Olympics, he felt “cautious” about the possibility of recovery.
Sorrell said that the shape of the recovery will be “an L shape, and an italicized L,” according to the Times of London.
He sees particular issues in the United States.
“Where the question of a double-dip occurs, will maybe be at the back end of 2011, when governments, including in the U.S., begin to have to deal with their deficits,” he said. “The U.S. is only beginning to think about its budget deficit.”
The recovery also will be tough for WPP’s agencies, which include Mediaedge:cia, Grey Worldwide, Ogilvy and dozens more.
Sorrell said the parent company had cut nearly 7,000 jobs this year, about three times the amount it had predicted in March.
"Although it is still very early to budget or forecast what may happen in 2010, top-line revenues will probably be 'even Stephen', despite the positive impact of the Winter Olympics in Vancouver, the World Expo in Shanghai, the Asian Games in Guangzhou, the FIFA World Cup in South Africa and the mid-term congressional elections in the United States," Sorrell said.
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