WPP SEES SHIFT BACK TO MEDIA ADVERTISING
By Adnews Staff
London-based WPP Group says that companies continued to shift from trade and consumer promotions to media advertising in 1995. Some major advertising spenders are experimenting with dropping coupon activity, concentrating instead on low pricing and increased TV spending, said WPP in reporting its last year's profit results. WPP Group reported a 33% increase in pre-tax profits last year, reaching $179.4 million. Revenues rose 9% to $2.45 billion on turnover of $10.34 billion. One reason for the company's improved financial picture was a new billings figure of $1.7 billion. Improved operating margins also helped. The two best performing companies were J. Walter Thompson and Ogilvy & Mather Worldwide, both based in New York. The two companies' combined revenues rose 11.5%. The Asia/Pacific region, Latin America, Africa and the Middle East accounted for 19% of WPP's revenue, as opposed to 12% five years ago.