09 May Are WPP moving in our Direction?
Since attending Digital Signage World Asia and hearing how Agencies needed to change if Digital out of Home (DOOH) was to grow and that brands wee forcing this change I have continued to research the market.
Another issue raised at the Conference was the lack of standards for booking and analysing effectiveness. This was een as a holding back profitability for network oweners and operators.
To get a handle on this I looked at the worlds biggest agencies and brands to see how the business model for Windows of China would align with the changes happening.
Sorrell, who founded WPP in 1985 and grew it into an advertising juggernaut to include ad agencies JWT and Ogilvy & Mather appears to have a very good focus on where the ad industry is and where it is headed.
Having seen recent reports of presentations re the impact of the GFC on marketing and Advertising by WPP CEO Sir Martin Sorrell I looked back at what WPP were doing.
The company, which has been experienced slowing growth in the United States and the euro zone debt crisis, has been making a string of small acquisitions and investments in China.
“I would say China should surpass the UK in about two to three, four years,” Martin Sorrell said in an interview with Reuters.
WPP’s revenue in China is about $1.1 billion, placing it as WPP’s fourth largest market by revenue currently, Sorrell said.
The country is expected to surpass Germany, which is in third place at $1.3 billion in revenue, in 2012. WPP’s largest market is the United States at $5 billion, followed by Britain at $2 billion.
As an indication of the country’s importance to the company, Sorrell recently visited Shanghai to co-launch the WPP School of Marketing and Communications.
The school will be part of the Shanghai Art & Design Academy and will seek to train students in marketing and communications in a three-year program.