Despite its “strong” start to 2016, advertising giant WPP, which owns agencies including JWT and Grey, says there is increased pressure on its clients as they find themselves having to compete with new disruptors like Airbnb and Uber as well handle a potential Brexit.
Despite acknowledging improvements to the global economy, WPP, which owns leading ad agencies including JWT and Ogilvy & Mather, and today reported a 12% rise in 2014 pre-tax profits to £1.4bn, says it is unlikely its clients will break the bank on ad spend in 2015.
WPP chief executive Sir Martin Sorrell has warned companies that the rush to “cut your way to growth” is handing too much power to procurement teams when it comes to advertising budgets, a shift emblematic of marketers becoming “too quantitative and not qualitative enough”.
Advertising Week Europe 2014: Producing native content and programmatic buying are the two biggest growth areas for WPP – and therefore for brands – according to Sir Martin Sorrell, whose business manages $75bn of media across the world.
Vice Media is expanding the distribution of the original content it produces for brands using its video capabilities across its publisher partner network of sites which reach more than 130 million young adults globally.