Currently, I am taking a Corporate Communications course that requires me to choose a publicly traded company and follow it in the news for a semester. I chose WPP, a global marketing communications services company, because I am interested in working in the advertising field. Additionally, I must identify trends in the industry and complete a research paper that focuses on how these trends are affecting my company…
Below is the backgrounder I submitted at the beginning of the project. Since this blog is integrated on my website, I thought it would be good to provide some formal writing samples into my blog.
Funny video of CEO, Sir Martin Sorrell
Ogilvy Kuala Lumpur Lego
WPP is a global media communications services company, operating in the advertising, media, public relations, market research, and specialist consulting industries. It is the largest advertising group by revenues, holding companies like Grey Group, Burson-Marstellar, Hill & Knowlton Strategies, JWT, Ogilvy Group, TNS and Young & Rubicam. WPP employees over 150,000 people in over 2,400 offices in 107 countries. WPP’s primary operating office is located in London, with executive offices in Dublin, Ireland. WPP is a publicly traded company listed on the London Stock Exchange (WPP) and has a second listing on the NASDAQ (WPPGY). WPP is well known for lowering its corporate tax bill, paying only 1.6% of total revenue in 2010.
WPP’s operations can be split into four main sectors; advertising and media, market research, public relations and specialist consulting.
The advertising and media investment management sector employs the design and production of advertising campaigns through various types of mediums. For instance, TV, cable, Internet, radio, magazines, newspapers, mobile phones, outdoor locations, and billboards. Also, its services are responsible for the planning, creation and execution of marketing and branding campaigns.
Next, the market research sector provides services for companies seeking consumer insight research, product development, media planning, advertising models, specific consumer studies and equity research. This sector falls under the umbrella group called Kantar.
The public relations sector focuses on advising clients on how to best communicate with their consumers. This also includes government lobbying, crisis management and corporate communications.
The last sector is specialist communications consulting. This sector was brought on by technological advancements in the digital field. This includes branding, digital strategy and sales promotions agencies.
COMPETITION
WPP mainly competes in the advertising and marketing services industry. However, WPP also competes in the consulting services, market research and polling services industries. The company’s main competitors are Interpublic Group, Omnicom and Publicis Groupe. It is important to note that WPP’s holding companies also compete against each other. For instance, WPP owns numerous advertising agencies that all fight to get the same clients.
CURRENT ENVIRONMENT & TRENDS
WPP plans to release 2011 Annual Report on March 1, 2012. The current environment for this industry can be defined by the state of the global economy. In 2009, the communications services industry struggled during the height of a global recession. Falling stocks and lost revenues caused companies to redistribute funds and move dollars away from advertising and communications. However, the economy is growing and more jobs are being created, especially in the United States. WPP’s Chief Executive Officer said, “2012 promises a maxi-quadrennial boost in the shape of the Summer Olympics in London, the European Football Championships and the US presidential elections.”
The most apparent trend in the communications services industry is the significance of a new digital medium. The industry has seen a move towards digital media over the past five years because of its addressable and measureable nature. In WPP’s 2012 Annual Report, Sorrell stated in that “WPP was founded to capitalize on these trends and remains in an excellent position to do so in [the] future.” In just two months WPP has acquired five digital media companies, including companies that specialize in social media, mobile marketing and search engine marketing.
This trend is important to WPP and the communications industry because digital media can grow and evolve at a very fast pace. Also, the consumer has more control over the messages they want to see. In this environment, traditional media will quickly become obsolete and leave companies that are not following this trend behind.
clairecongleton 