Rivals full of
beans over
WPP to axe
marketing
campaigns
7,200 jobs
Advertising giant forced to make redundancies as trading conditions worsen
GLOBAL London-based WPP will WPP is one of the world’s largest the company had predicted just two
cut 7,200 jobs by the end of the year agency groups. It owns agencies such months before that. Its share price
across Britain, the United States and as JWT plus Ogilvy and Mather, with a has taken a beating as investors worry
Europe, where growth rates have been client list that includes Ford, Colgate, about its debt pile of £3.75 billion.
tumbling due to the recession. IBM, HSBC and Kellogg’s. However, Credit rating agency Standard &
Around half of the redundancies multinationals are witnessing a drop Poor’s said at the end of March that it
have already been made, as WPP in trading conditions not seen since had revised its outlook on WPP from
clients across the world continue the end of the Second World War, stable to negative. “It is likely WPP will
to slash their advertising and and are tightening their marketing suffer a greater revenue decline, on an
marketing budgets. budgets as a result. Analysts say the organic basis, than it has budgeted…
The job cuts would fall in line slump looks as if it will be far more deleveraging will be difficult before
with the group’s target to reduce its challenging than those seen in 2001 2010,” it said.
global workforce by over six per cent and 1991. Despite the gloomy outlook, WPP
to 106,000 by the end of 2009, either Last month, WPP said its like-for- still has a bigger presence than
through severance or by not replacing like revenue would fall by around competitors in fast-growing markets in
staff who leave. five per cent this year—double what Latin America, China and India.
US Starbucks and McDonald’s
went full steam ahead last week
with the launch of national market-
ing campaigns to promote their cof-
fee. While Starbucks is aiming to
Obama digs digital
persuade consumers that its coffee
is the best there is, McDonald’s is US The White House has begun using services such
trying to build a new brand around as Facebook, MySpace and Twitter, to reach out to
its mochas, hot cocoas, lattes and the millions of Americans who use social-network-
cappuccinos—with ads showing ing sites.
consumers how the drinks can The initiative builds on the official presidential
brighten, or “McCafé”, their day. website, WhiteHouse.gov, which was set up in 1994.
The fast food chain is expected to The White House also uses YouTube and photo
spend $100 million on TV, print, service Flickr to communicate with the public. As a
radio, outdoor, internet, events and candidate, President Barack Obama (pictured) re-
PR. Agencies include DDB Chicago lied on Twitter and Facebook to reach constituents,
for advertising, OMD for media especially younger voters.
and Golin Harris for PR. “WhiteHouse.gov is an important part of the ad-
ministration’s effort to use the internet to reach the
public quickly and effectively—but it isn’t the only
BA to fly
place,” the White House says on its blog. “Technol-
ogy has profoundly impacted how, and where, we
all consume information and communicate with
solo PR
one another.”
On the White House’s Facebook and MySpace
agency
pages, Obama comments on retiring US Supreme
Court Justice David Souter. The Twitter site includes
an entry about the president playing basketball with
GLOBAL British Airways is looking a women’s university team.
for a single agency to handle all of
its PR, as it looks to steer away from
its existing six-way split. The multi-
million pound account currently
Pinoy press ‘not restricted’
sees, among others, Cohn & Wolfe PHILIPPINES President Gloria Maca- government. His comments were made
run Western and Northern Europe pagal-Arroyo’s office has dismissed in response to a report from civil liber-
PR, while Grayling manages the suggestions that press freedom does ties group Freedom House which said
Pacific region. A BA public relations not exist in the country. Press Secre- the Philippines—along with Thailand,
insider says all incumbents, plus tary Cerge Remonde (pictured) says Mexico, Argentina, Peru, and Senegal—
some additional agencies, have been media organisations frequently pub- had witnessed considerable declines in
invited to take part in the pitch. lish uncensored news and criticise the press freedom.
10 MAY 2009 / 09
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