Ad industry blues
WPP, the world’s largest advertising group, is warning of a global slowdown in the industry as pressure on client spending intensifies, with a knock-on effect on the retail sector in particular.
WPP, which houses SA ad agencies such as J Walter Thompson, Y&R and Ogilvy, is facing its worst year in a decade.
The group has already shed more than 1,400 jobs this year. WPP’s two biggest clients, Procter & Gamble and Unilever, are involved in major agency cost-cutting drives.
Procter & Gamble has slashed the number of ads it produces globally by 30%, halved the number of agencies it works with and taken more of its advertising production in-house.