Sorrell Predicts Strong 2008 For Ad Industry

Sir Martin Sorrell has said that 2008 should be a pretty good year for the advertising industry, with 2009 looking less certain.

Sorrell, WPP chief executive, speaking on BBC Radio 4’s Today programme, said: “We see 08 as still being a pretty good year, in fact better than 07, Beijing Olympics, fantastic Olympic Games in China, US Presidential election political adspend of £3 billion, European football championships.

“We think the issue is more about 09, there is a political cycle kicking in now and in 09.”

He added: “The new president in the United States will have eight years and will do anything unpleasant in that first year of that cycle and we think there might be a slowdown in China after the Beijing Olympics.

“We think the financial markets are signaling these things in advance, whether there will be a recession or not, I’m not quite sure, I think there will be a slowing down.

“The Fed cut yesterday, which was out of cycle, and severe, much more severe than people thought and will indicate that inflation will grow and that will push the problem into 09 and I think that’s when the rubber will hit the road.”

Sorrell added: “This year will mark the first time that growth in our industry [the advertising industry] in China will offer a bigger prospect and in fact that is the case, the IMF World Bank statistics growth outside of the United States will be greater and a bigger opportunity for our clients.

“I mean the reason we grow in China, the reason we have 9,000 in China and a 15% market share, and 50% market share in India and 6,000 people there is that our clients are growing there.

“What we are witnessing is a major power shift, and it is very uncomfortable for people in the United States and in western Europe, including the UK, to come to terms with this.”

WPP: 020 7408 2204 www.wpp.com