WPP PLC, the world’s largest advertising group, has lowered its full-year outlook after not doing as well as expected from the Olympics, the U.S. presidential campaign and the European soccer championships.
Shares opened 5 percent lower at 768.3 pence in London as the company said Thursday that it expected revenue growth between 2.5 percent and 3 percent for the year, down from the 3.5 percent target it set in August.
Third quarter revenue was up 1.6 percent to 2.5 billion pounds ($4 billion). The company did not disclose profit figures in the trading update.
“In some ways, the company is a proxy for the global economy and, even into 2013 WPP is managing down expectations,” said Richard Hunter, head of securities at Hargreaves Lansdown Stockbrokers.
“The reaction of the share price in early trade is testament to a market which is searching for corporate good news stories, but is finding them hard to locate,” Hunter said.
WPP said the three big events did support growth but not as much as expected, with money often switched from existing budgets, “particularly in the cases of the UEFA Championships and Olympics.”
Revenue fell by 0.4 percent in North America and 2.1 percent in western continental Europe, WPP said. Latin America was the best-performing region with growth of nearly 15 percent.
WPP said that in the U.S. it was worried about the government’s handling of debt and the looming “fiscal cliff” of expiring tax and spending legislation, which could result in automatic tax increases at the end of the year if politicians do not agree on new budget terms.
“Fears remain that whoever wins the presidential election, will be unable to deal with these issues given a dead-locked Congress,” the company said.
AD&Co. Launches Studio A; Davida Hall To Head New Venture As Sr. Director of Creative Content
Female-founded and led creative marketing agency AD&Co. has opened Studio A. The new venture will serve as AD&Co.’s in-house social brand content division, focused on developing and producing digital programming for advertising, social media, and influencer marketing campaigns designed to reach today’s audiences on the most popular and pivotal platforms. Davida Hall has been named to head Studio A as sr. director of creative content. She shifts over from AD&Co. where she held the same title since December 2023. Hall’s affiliations prior to AD&Co. include PopSugar and Studio71.
Amy Demas, founder and chief creative officer of AD&Co., said, “We understand content is king-—or queen—and that our clients need to engage their customer communities where they live. That inspired the logical expansion of AD&Co with Studio A, which is committed to producing only the most engaging and authentic brand stories.”
Studio A will harness both AD&Co’s and Hall’s deep expertise in the lifestyle sector, as content creators and avid consumers. Specializing in reaching audiences where they spend their time, the studio is immersed in social media, pop culture, and current trends, expertly crafting visuals, language, and storytelling to reinforce client brand identities and cut through the noise.
Studio A debuts with the “This Is Me” campaign for Love + Craft + Beauty, a brand dedicated to embracing and promoting diversity within the beauty space. “This Is Me” highlights Gen Z’s affinity for radical self-expression that allows individuals to tell their own stories, free from labels, using beauty and fashion as tools of authenticity. The campaign showcases models celebrating their unique qualities to present... Read More