WPP warns ad industry ‘in danger of losing the plot’ over discounting as revenue growth slows
WPP has warned the industry is “in danger of losing the plot” as it accused rivals of offering discounts, cheap creative, underwritten media and other tricks to win business.
Martin Sorrell’s WPP has seen revenue growth slow in the send quarter
Reporting a slowing of revenue growth for the second quarter, the world’s largest marketing and communications holding company revised down its predictions for the full year on the back of a challenged global economy.
Total billings for the first half were up 6.3% to £26.906b, but down 4.7% on a constant currency basis. Revenue was up 13.3% to £7.404b, but up only 1.9% on constant currency.
Pot.
Agree. WPP are guilty of all of the above.
But his observations are correct.
The industry is becoming an overhead, not an investment.
Very true – and that view could cause trouble for the industry if the markets start to falter.
We know where clients will pull budgets from first.
Sup Kettle!
I see you are just as charred as I am.