WPP Group plc takes serious earning dump
August 26, 2009
Advertising Agency WPP Group plc published their earning results, and it’s ugly.. really ugly. Revenue is down 8.3% earnings are down a mind boggling 47% and to make matters worse “Digital” Takes Bigger Slice Of super shrinking WPP Pie, Accounting For a full 25% of total revenue. We say worse because WPP group plc doesn’t actually do Digital, The companies they hold GroupM, Outrider, 24/7 Real Media, and media shops such as Mindshare, Mediaedge:cia and MediaCom are not “digital” firms as per say. Most of the revenue is just online media buys. For example WPP group plc has very limited access to SEO talent and very limited access to Social Media Talent.
Leaving their “digital” assets mostly addicted to flash based websites and Google Pay Per Click.
That’s not digital, not by a long shot. On January 1st 2009, we published an article defining digital here we are nearly 1/2 a year later and WPP group plc epic fails on that definition.
Having a bunch of guys and girls sitting there running clients credit cards though Google’s Adwords isn’t actually digital.. but that is pretty much what they define digital as hence why their total revenues are down and Google Adwords related work now accounts for such a huge percentage of their ever declining revenue.
Sir Martin, Digital isn’t Pay Per Click, Digital is when you are reading this blog post. If you don’t understand the difference think about the trail on how you found this article.
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