WPP, the earth’s biggest advertising company battling a slowdown in client spending, lowered expectations for full-year organic net sales in addition to profit margin on Tuesday, two months after an earlier downgrade sent shockwaves through the industry.
Led by the high-profile British businessman Martin Sorrell, WPP said This particular today expected like-for-like net sales growth to come in flat, compared using a previous forecast range of 0 to 1 percent.
This particular said the headline net sales operating margin was today required to be flat, compared using a previous forecast of a 0.3 margin point improvement.
Sorrell said there was “obviously pressure inside the system” as WPP’s consultants were found to be more focused on costs in 2017.
“I think This particular can be in This particular low growth world, or relatively low growth world, where there can be very little inflation, where there can be very little pricing power in addition to there can be a great focus on cost,” he explained to CNBC.
The British group, like its peers Publicis in addition to Interpublic, has been hit by a fall in spending via consumer packaged goods groups, in addition to via fierce competition inside the market for online advertising.