Our key priorities

Our reason for being, the justification for WPP’s existence, continues to be to add value to our clients’ businesses and our people’s careers. Our goal remains to be the world’s most successful provider of communications services to multinational and local companies, not just the largest. To that end, we have three key strategic priorities.

1 First, our immediate priority is to weather the current financial crisis successfully. Compared with the last downturn, our people are stronger: they are better resourced, motivated and incentivised than when we exited the last recessions in the early 1990s and 2000s. The Company is also more profitable, more liquid and better structured. In the most recent economic cycle, margins peaked at 14.5% and bottomed at 12.3%, as opposed to 10.5% and 5.6% the previous time.

2 Second, in the medium term, to build upon the successful base we have established with the acquisitions, for example, of TNS, Young & Rubicam Brands and Grey. At Grey, the new management structure is now in place and the planned integration is now completed. Grey Advertising still needs to raise its game in terms of revenue growth and ghg needs to overcome the impact of FDA non-approvals on products that clients have assigned to them. At Young & Rubicam Brands, our plans are also largely implemented, the one remaining task being to continue to strengthen the Y&R advertising agency, although the business is showing increased strength following the change in leadership two years ago.

3 Our third priority, in the long term, or over the next five to 10 years, is to:
increase the combined geographic share of revenues from the faster growing markets of Asia Pacific, Latin America, Africa and the Middle East, and Central and Eastern Europe, from around 27% to one-third.

aim to increase the share of revenues of marketing services from around 62% now (including TNS on a full year basis) to two-thirds.

increase the share of more measurable marketing services – such as Information, Insight & Consultancy (or consumer insight), and direct, interactive and internet – from around 40% of our revenues to 50%.

Revenue by geography vs peers1 $bn

Revenue by geography vs peers

1
Source: WPP – sterling revenues converted @ $1.85=£1 based on the average exchange rate for 2008, adjusted to include a full year of TNS. Omnicom, IPG, Publicis and Havas – company presentations for 2008.
2
Omnicom. Assumes “non euro currency” Europe, i.e. Switzerland, Turkey, Norway, Denmark, Sweden and Eastern Europe are ca 3% of revenue and Canada is 1.5% of revenue.
3
IPG. Assumes Canada is ca 1.5% of revenue.
4
Havas and Publicis figures assume $1=€0.68 based on the average exchange rate for 2008.
5
Rest of World. Asia Pacific, Latin America, Africa and Middle East.

Revenue by discipline vs peers1 $bn

Revenue by discipline vs peers

1
Source: WPP sterling revenue converted at $1.85=£1 based on the average exchange rate for 2008, adjusted to include a full year of TNS. Omnicom, IPG, Publicis and Havas – company presentations for 2008.
2
Havas and Publicis figures assume $1=€0.68 based on the average exchange rate for 2008.