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WPP revenues back to pre-Covid levels as advertising rebounds | WPP

by All News Admin
August 5, 2021
in Marketing & Advertising
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WPP, the world’s largest promoting group, has grown its revenues again to pre-pandemic ranges a yr before anticipated due to a record-setting rebound in international advertising spend.

WPP reported that underlying revenues elevated by 19.3% within the second quarter, the quickest charge of progress the corporate has ever recorded, with purchasers ploughing cash into promoting and advertising because the post-pandemic enterprise restoration continued apace.

The group, which raised its full-year steering after beating Metropolis expectations, reported a 16% rise in like-for-like revenues to £6.1bn within the first half of the yr.

“We’re very happy,” stated Mark Learn, the chief govt at WPP. “We count on momentum to proceed within the second half of the yr. “We’ve got returned to 2019 ranges in 2021, a yr forward of our plan, with good momentum into 2022.”

WPP stated the worldwide promoting restoration was being pushed by purchasers focusing extra of their budgets on digital media. GroupM, the group media shopping for arm of WPP, is predicting international advert progress of 19% this yr. Inside that, digital media spend will rise at 21% whereas TV advert spend will enhance by 9%.

Revenues grew in all areas within the first half of the yr. The UK and western continental Europe confirmed the strongest progress, with revenues up 22% and 24% respectively on a like-for-like foundation.

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Whereas enterprise is booming, progress on a return to workplace working stays gradual in a lot of WPP’s markets. Within the UK, the place WPP employs about 10,000 individuals, on any given working day about 9% of workers are within the workplace, whereas within the US the speed is simply 5%. In Europe, Germany is at 15% and Italy 20%. In China, 79% of workers are in on a median day.

“I feel the vital factor to level out is that these outcomes – report web gross sales progress and an enormous enchancment in profitability – have been achieved with the vast majority of workers working from residence,” stated Learn. “Within the quick time period it’s manageable, however over the long run we’ll get again to a bit extra of a stability.”

Shares in WPP rose by 2.2% in early buying and selling.



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Tags: AdvertisinglevelspreCovidreboundsRevenuesWPP
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