Section image

Stack of Books

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

Tough times, but market share will increase

Although 2009 was an extremely challenging year, the Company responded well, particularly in the second half. That was all the more gratifying, given that 2009 had none of the maxi-quadrennial stimulative events of 2008. That year was a record in terms of billings, revenues and profits, bolstered by a summer Olympics, a European football championship and an American presidential election. Neither did 2009 have the mini-quadrennial events of 2010 – a winter Olympics, a FIFA World Cup, or mid-term US Congressional elections, not to mention the Shanghai Expo and the Asian Games in Guangzhou.

Overall, in 2009, spending on worldwide communications services – advertising and marketing services – shrank by 6.3% to $746 billion from an actual spend of $797 billion in 2008, based on more rigorous data now available to our Media Investment Management parent company, GroupM. WPP’s market share stood at nearly 10%. Given the continued economic pressure, the industry will probably remain flat in the current year. GroupM forecasts a small 0.8% rise in advertising, which now accounts for approximately 40% of our business. GroupM also forecasts a 0.3% increase in marketing services, which affects the other 60%. Relatively flat revenues this year thus mean increased market share.

As a proportion of worldwide GDP, communications services probably stayed constant in 2008, falling again in the sharp recession of 2009. Neither 2010 nor 2011 will be easy years, particularly in the ‘L’-shaped economies of Western Europe, where it is likely to be a slog, but we believe WPP is well placed to make the most of it. On the following pages, we explain why.

Share This

Close