WPP Group, which encompasses Ogilvy Advertising, Y&R, Mediaedge:cia, Wunderman, Grey and many more, has suffered an organic revenue fall of 8.7% but has declared that “less worse” economic conditions mean there has been “no Armageddon” for the industry.
Like-for-like gross margin, which WPP said was a better measure of competitive performance, fell by 8.3% — a smaller decline than in previous quarters.
Overall revenues, taking into account acquisitions and currency fluctuations, rose by 16.7% to around $3.3 billion.
In a trading statement, the company said: “There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009.
“Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates, because Armageddon and Apocalypse were barely avoided in September 2008.”
WPP said that UK revenues for the third quarter had fallen again when compared to the second quarter, reflecting the fact that while France, Germany and the US are now officially out of recession, the UK is not.
In the US, the fall in revenues stood at 6.1%, compared with 9.4% in the first quarter. Other areas to see improvement were Western Europe and Asia Pacific.