MAM
WPP bullish on Olympics, fiscal rev up 7.4% to ?10.02 bn
MUMBAI: WPP, the world‘s biggest advertising group, has posted a net profit of ?916.5 million for the fiscal ended 31 December, up 38.7 per cent over the earlier year, and expects the Olympics to give it a further boost this year.
WPP‘s strong performance in a slowdown year has been led by companies spending towards brand building in emerging markets. It has also managed to protect its market share in the matured markets.
Revenue grew by 7.4 per cent to ?10.02 billion, from ?99.33 billion in the previous fiscal.
Geographically, the Asia Pacific, Latin America, Central and Eastern Europe and Africa and Middle Eastern region posted maximum year-on-year growth in revenue at 12.5 per cent. The total revenue from the region was ?2.95 billion in 2011 as compared to ?2.62 billion in 2010.
Meanwhile, UK registered a growth of 8.8 per cent recording an revenue of ? 1.18 billion as opposed to ?1.10 billion in 2010.
The Western Europe region grew at 7.7 per cent with the revenue increasing from ?2.23 billion in 2010 to ?2.51 in 2011.
The region to show least growth was North America with 2.7 per cent increase in revenue. The region’s revenue for 2010 was ?3.3 billion while in 2011 it registered revenues of ?3.39 billion.
Sector wise, the group’s advertising and media investment management wing brought in revenue to the tune of ?4.12 billion in 2011, up 11.4 per cent compared to ?3.73 billion in the year ago period.
The consumer insight business grew marginally (at 1.1 per cent) to ?2.5 billion.
The PR and public affairs business recorded growth of 4.8 per cent earning the group ?886 million in 2011, compared to ?845 million in 2010.
The branding and identity, healthcare and specialist communications sector brought in a revenue of ? 2.5 billion, marking a growth of 8.5 per cent from last year’s ?2.3 billion.
In the fiscal under review, the WPP group made 24 acquisitions and investments in new markets, 32 in new media and eight in consumer insight. The remaining seven acquisitions were driven by individual client or agency needs.
WPP said the group’s budget for the year 2012 would be made on conservative basis and will reflect on the faster growing geographical markets like the APAC, Latin America, Africa and Central and East European markets. The focus will be on increasing the revenues and gross margins faster than the industry average.
The London Olympics, the Uefa Football Championships and November’s US Presidential Elections alone will grow advertising revenues by 1 per cent this year, helping WPP to meet its budgeted forecast of 4 per cent revenue growth, the group stated.
MAM
Omnicom Media appoints Bradley Rogers as CEO of OMD USA
Red Ventures president to lead OMD’s largest market as Chrissie Hanson exits
NEW YORK: Omnicom Media has named Bradley Rogers as chief executive officer of OMD Worldwide’s US business, handing him the reins of one of the world’s largest media agency operations. His appointment takes effect on March 23.
Rogers steps into the role with more than 25 years of experience across media, creative services and digital platforms. Over the years, he has held senior leadership roles at global organisations including McCann Worldgroup, Ogilvy, Mindshare and Red Ventures, working across global, regional and market level operations.
His career has also seen him build long standing partnerships with major brands such as IBM, Mastercard, Microsoft and Nestlé.
Announcing the move, Ralph Pardo, chief executive officer of Omnicom Media North America, said Rogers brings a rare mix of business acumen and cross discipline expertise shaped by leadership roles across media, creative services, commerce and consumer platforms.
Pardo noted that Rogers’ entrepreneurial mindset and ability to connect capabilities, teams and ideas makes him well suited to lead OMD as marketing grows more complex and outcome driven.
Rogers succeeds Chrissie Hanson, who is stepping down after four years as chief executive officer of OMD USA. Pardo credited Hanson with strengthening the agency’s market leadership and deepening the value delivered to clients during her tenure.
Before joining OMD, Rogers served as president at Red Ventures, a digital marketing and large scale customer acquisition company recognised by Inc. Magazine as one of the fastest growing private companies. Prior to that, he was global president and chief operating officer at MRM, part of McCann Worldgroup, where he oversaw global operations across 16 markets and managed relationships with several of the world’s largest brands.
In his new role, Rogers will lead the US arm of OMD, the largest market within the global media agency network.
Commenting on his appointment, Rogers said that as marketing organisations navigate rapid change, agencies must work closely with clients to understand both the pressures they face and the opportunities ahead. He added that his focus will be on delivering measurable outcomes while unlocking Omnicom Media’s strengths in scale, data, identity, commerce and talent to drive growth for the brands it serves.
