Local media market improves, global market treads water
Despite positive Goldman Sachs JBWere (GS) and Royal Bank of Scotland (RBS) forecasts, WPP’s CEO says things are “less worse”.
GS and RBS predict advertising growth of 7.4% to 7.6% this year. In an interview with Bloomberg, Sir Martin Sorrell said WPP – the world’s largest communications group by revenue – were considering things “less worse”.
“We hear media owners celebrating the fact that instead of being minus 30 in terms of top line sales like for like sales they’re down 10% or 5% and they’re declaring victory.”
Sorrell mentioned media status across global regions, but did not comment on Australia. He said the next decade will be about BRIC (Brazil, Russia, India and China), Latin America and the new media.
Speaking on forecasts for 2010 Sorrell said:
The second quarter will see probably positive growth, but thats basically because were cycling easier comparatives… but you cant declare victory until you see consistent gains year to year.