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Sector performance

Constant currency revenue by growth

HEadline PBIT margins by sector

Revenue by sector

Notes

1 See definition in the financial glossary.
2 The calculation of Headline PBIT is set out in note 31 of the financial statements.

Advertising and Media Investment Management

In constant currencies, Advertising and Media Investment Management revenue grew by over 5%. Like-for-like revenue growth was 4.5%. On a constant currency basis, the combined operating margin of this sector is now 16.0%.

In 2007, Ogilvy & Mather Worldwide, JWT, Y&R Advertising, Grey and United Group generated estimated net new billings of £723 million ($1.4 billion).

Also in 2007, GroupM, the Group's Media Investment Management company, which includes MindShare, Mediaedge:cia, MediaCom and MAXUS, generated estimated net new billings of £3.686 billion ($7.188 billion).


Information, Insight & Consultancy

On a constant currency basis Information, Insight & Consultancy revenues grew over 4%, with like-for-like revenues up almost 3%. Gross margin grew by 4.0% on a like-for-like basis. Overall margins improved by 0.3 margin points to 11.3%.

Strong performances were recorded by Millward Brown (MaPS in the US, Canada, Millward Brown and Dynamic Logic in the UK, Hungary, Italy, Centrum in the Netherlands, Poland, Spain, Turkey, Impact in South Africa, Australia ACSR in China, the Philippines, Singapore, Colombia, Brazil and Mexico); BMRB International in the UK; Mediafax; Research International (in the UK, Italy, SIFO in Norway, South Africa, Mexico, New Zealand, Hong Kong, Malaysia, Singapore and Thailand); Ziment in the US and All Global in the UK; IMRB in India; Lightspeed Research in the UK; Mattson Jack in the US, Icon Added Value in Germany, Spain, Japan; RMS Instore in the UK.


Public Relations & Public Affairs

Public Relations & Public Affairs continued its strong growth with constant currency growth of over 12% and like-for-like growth of over 8%. Particularly strong were Hill & Knowlton, Burson-Marsteller, Ogilvy Public Relations Worldwide, Finsbury and Clarion in the UK and Public Strategies in the US.

Operating margins continued to improve and are now over 16.5% on a constant currency basis, an improvement of 1.5 margin points over the previous year.


Branding & Identity, Healthcare and Specialist Communications

The Group's Branding & Identity, Healthcare and Specialist Communications revenues rose by over 14%. Like-for-like revenues rose by over 6%. Operating margins were down slightly by 0.2 margin points. The Group's direct, internet and interactive businesses showed particularly strong revenue growth.

Several companies performed particularly well:

  • in Branding & Identity – Landor Associates in New York and Chicago in the US, the UK, France, Germany, Italy, Dubai, Hong Kong and Australia; The Brand Union (formerly Enterprise IG) in the US, France, Germany, Ireland, Spain, South Africa, China, Hong Kong, Japan, Singapore and Ray & Keshavan in India; Addison and The Partners in the UK; FITCH in the UK, Peclers in France, Norway and Dubai.
  • in Healthcare Communications – Sudler & Hennessey in the UK, France, Germany, Italy, Sydney in Australia, China and India; Grey Healthcare Group in Catalyst online, Innovative Customer Solutions, BrandEdge and Insight Medical Communications in the US; WG Consulting and Grey Healthcare in the UK, Australia and Japan; Ogilvy Healthworld in the US, Canada, the UK, France, the Netherlands, Spain, Switzerland and Turkey.
  • in promotion and direct marketing – OgilvyOne (Global Strategies), Eicoff, The Lacek Group, Leopard, San Francisco and Neo@Ogilvy in the US; Neo@Ogilvy in Canada; Neo@Ogilvy and OgilvyOne in the UK, Ireland, Denmark, France, Portugal, Italy, Sweden, the Czech Republic, Poland, Russia, Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia, Malaysia and Singapore); 141 Worldwide; Wunderman in San Francisco, Seattle; RTC, KBM, Fortelligent, Studiocom and ZAAZ in the US and Canada; Burrows, GT and iMpact in the UK, Belgium, Denmark, Germany, the Netherlands, Italy, Switzerland, the Czech Republic; AquaOnline in South Africa, Argentina, Brazil, Mexico, Singapore, Thailand; RMG Connect in the US, Canada, Mexico, Hong Kong, India, Japan and Singapore; G2 in direct and digital and interactive marketing in the US; Joshua in the UK, Germany, Russia, Colombia, Chile, China, Hong Kong, Japan, Korea and Taiwan.
  • in Specialist Communications – Bridge, VML and The Geppetto Group in the US; Metro Group, The Farm, Spafax and Headcount in the UK.

Manufacturing

Revenues and profits at Wire & Plastic Products, the original manufacturing company on which WPP was founded and which now accounts for less than 1% of the Group's revenue, were flat.