Agency Network Chiefs Give FY08, 09 Predictions
Several ad agency network chiefs gave their outlooks to analysts recently, and their views are as interesting for the contrasts as they are for the similarities. Here’s a selection:
WPP Group chief Martin Sorrell:
There is no doubt that the disintegration in the financial markets … has had and will continue to have, a significant negative effect on consumer and corporate confidence … As a result, 2009 will be a very tough year.
Sorrell said it would now not be easy to attain WPP’s margin target for 2008 of 15.5 percent. Analysts think WPP’s revenues will be down 5 percent next year. Sorrell disagrees:
If you ask me to say what I think the budgets will look like next year, I think they will be positive in terms of revenue growth.
In August we said we would be at the upper end of analysts’ consensus, and at this stage analysts’ consensus is £147-153 million pretax profits. We are not making a formal forecast, but we are not changing the guidance we are giving … [as for the fourth quarter,] That is slightly more difficult. We have just to wait and see.
We will deliver a higher margin than the industry, and one of the highest margins [in 2009].
He expected to report “good figures” for new business in the fourth quarter 2008, and positive growth in 2009.
Havas CEO Fernando Rodes: His “personal opinion” is that he expects 2008 organic sales growth of around 4.5-5 percent, having achieved 5.8 percent in the nine months but just 1.5 percent in the third-quarter.
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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