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WPP Shares Hit by Ad Spend Drops

 1 min read / 

The world’s largest advertising agency has cut its growth estimates amid a gloomy outlook for traditional advertising.#

Editor’s Remarks: WPP shares fell over 10%, and those of other European advertising rivals such as Publicis fell up to 3%, as the company delivered disappointing quarterly results and a downbeat forecast for the full year, with CEO Sir Martin Sorrel saying that 2018 is “unlikely to be much different.” Like-for-like sales fell by 1.7% in the second quarter, and the company cut its full year sales growth forecast to less than 1%. The company said that ad industry revenues were especially weak in the US and that spending in the fast-moving consumer goods sector (FMCG), which accounts for over a third of WPP’s revenues, was particularly slow. But Sir Martin focused on the effect of the internet on the advertising business, saying that digital disruption was a fundamental reason for the changes in how companies manufacture, distribute and advertise their products.

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