The world’s largest advertising agency, WPP reported 3.8% organic growth for Q3 while adjusting its full-year guidance slightly higher as the global advertising group’s CEO Mark Read reported “strong momentum”.
“WPP continues to show strong momentum, reflecting broad-based growth across our agencies, markets and industry sectors and the investment by our clients in marketing, ecommerce and digital transformation,” said Read.
The Asia Pacific, Latin America, Africa & the Middle East, and Central & Eastern Europe saw like-for-like revenue less pass-through costs rise 6.9%. The highest growth region was Latin America, led by Brazil which grew 19.7%, marking the sixth consecutive quarter of double-digit growth.
The Asia Pacific grew more slowly with strong growth in India, up 10.7% offset by a significant slowdown in China. WPP reported that China was down 9.0% in the third quarter, a deceleration from the second quarter, as Covid-related lockdowns have restricted activity.
Looking ahead, the company upgraded its full-year guidance for like-for-like revenue less pass-through costs growth of 6.5-7.0% (previously 6.0-7.0%)
“We are confident in the resilience of our business, our strategy and our long-term growth potential. Our updated guidance takes into account the strong third-quarter performance, ongoing investment in our people, inflationary pressures, and the impact of the current outlook for the global economy.”
WPP said that it has won $5.1 billion of net new business in the first nine months of the year, up on the $4.6 billion in the same period in 2021, with significant wins and retentions including Nestlé Germany media, Samsung European CRM, Discover media, H&R Block creative and the consolidation of SC Johnson’s global creative and shopper marketing account.
“Coca-Cola continues to be onboarded at pace” WPP added.