WPP, the world’s largest advertising group, which includes Ogilvy and Mather and the Young and Rubicam Brands, earned 1 billion pounds in profit for the first time in its history, up 27.9 percent from 2009. Why? Social and mobile network advertising were an integral part of the group’s offerings, and this attracted skittish companies looking for creative advertising with high ROI. During tough economic times, like we’ve experienced in 2010, companies look to advertising as a sound investment, according to CEO Martin Sorrell.
“In Western markets we are seeing companies who are not investing in capacity, they’re afraid of making a mistake, so they instead invest in the brand,” Sorrell told Reuters. “You have $2 trillion sitting on the balance sheet of Western multinationals and they’re not spending it.” Sorrell recently stated during a presentation at the Mobile World Congress that the company was planning investment in “middle-stage, interesting companies that enhance our mobile offerings.” Sorrell also stated that although consumers are now spending 20-25 percent of their time online, WPP’s client base is only devoting 14 percent of their budgets to online. The potential to grow that percentage, according to Sorrell, is huge, as brands are drawn towards the “holy grail” of mobile advertising; effective location-based services.
Go to WPP’s reading room to download a multitude of resources from the group’s roster of digital agencies.
More in Media
Amazon expands media footprint with iHeart sales deal and new TV outcome tool
Amazon is deepening its role in streaming advertising with an expanded iHeartMedia sales deal and outcome-based TV buying technology.
Media Briefing: Inside publishers’ real Cannes agenda – AI money vs agentic hype
For publishers, Cannes this year isn’t just about showing up for clients and sponsors. It’s a mid‑year checkpoint on two hard questions: who is going to pay for the open web in an AI world, and whether agentic media buying is a real fix or just a freshly branded ad‑tech tax.
Forbes tests a creator-led audience play to grow off-platform reach
Forbes is yet another publisher tapping creators and their audiences to drive off-platform growth – with a slightly different structure.