Little digital growth WPP

Communication and advertising agency network WPP sees little growth in media spending on digital media. Nearly one-third of the turnover comes from digital activities, but it also paves the way. This morning, WPP published its financial figures for the third quarter in England. WPP is an office network that includes companies like Ogilvy, JWT, TNS, Group M and Reddion

Communication and advertising agency network WPP sees little growth in media spending on digital media. Nearly one-third of the turnover comes from digital activities, but it also paves the way.

This morning, WPP published its financial figures for the third quarter in England. WPP is an office network that includes companies like Ogilvy, JWT, TNS, Group M and Reddion. It is therefore one of the global networks that can sense how companies spend their money on commercial communication with the various media.

CEO Martin Sorell thinks that the media industry will not experience any major blows from the global economic uncertain period for the time being. The Englishman expects the advertising market to grow by four percent next year.

In the three months to October, the company achieved sales growth of nine percent to 2.8 billion euros. The largest growth comes from the emerging countries and western Europe.

On the digital front, the big growth is apparently already behind us. The company now accounts for 29 percent of the turnover, or more than eight hundred million euros, with digital communication. That is a growth of only 0.7 percentage points compared to a year ago.

Sorell does not immediately think about acquisitions to strengthen his digital trade. "There is still a good number of reasonably priced small and medium-sized companies that are suitable for takeover. America is the only exception. There the takeover candidates are overpriced. "

Digital activities account for 29 percent of WPP's turnover. That should grow to 35 to 40 percent in the long run. It will take some time before that goal is achieved with organic growth. Acquisitions should help to achieve the growth ambitions faster.

This afternoon Interpublic Group will present its quarterly figures in New York. IPG is in the same markets as WPP.