Home Agencies WPP Cuts 2012 Forecast, as U.S. Growth Wobbles

WPP Cuts 2012 Forecast, as U.S. Growth Wobbles

SHARE:

WPP sees a tough environment for the rest of this year and next, and as a result has lowered its forecast for 2012 from anticipated 4% growth to 3.5%.

In its mid-year spending report, the holding company says a cyclical spending downturn related to the absence of Olympic games and U.S. elections is a contributing factor, though not the only one. Others include flat global GDP growth, sluggishness in Western European economies, and a rising client insistence on efficiency and value. On the bright side, WPP hailed ad demand in UK and EMEA, and said digital investments and acquisitions continue to drive growth in its business.

WSJ breaks down the picture (sub required), including poor growth in the U.S. where it was hurt by “a 0.6% fall in the country’s second-quarter like-for-like revenue on slow spending by its customers, particularly in healthcare, call center and public affairs businesses.”

Pivotal Research analyst Bryan Weiser sees another bright spot in GroupM, WPP’s media investment arm. He wrote in a research note today, “The company’s media agency business GroupM was a positive offset, posting 12% growth at margins which we believe are much higher than the company’s average levels.  This growth is largely reflected in the company’s reported net new billings (most of which are attributable to media), which totaled £2.475 billion for the half and £1.316 billion for the quarter.”

 

 

Must Read

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.