UPDATE: Ogilvy & Mather Sees No Signs Of Ad Market Recovery
2009年6月26日 - 5:31AM
Dow Jones News
Ogilvy & Mather Chief Executive Miles Young doesn't expect
any immediate recovery in the advertising market and believes the
recession may spill into 2010, he told Dow Jones Newswires
Thursday.
"The first and second quarters of 2010 will still be tough for
the industry and Ogilvy & Mather," he said in an interview at
the Cannes Lions advertising festival.
"There is a strange reluctance to accept that the recession may
spill over into next year," said the head of the world's
third-largest advertising agency by the number of global clients,
which is owned by WPP PLC (WPP.LN).
Still, he thinks one can expect some recovery in the second half
of 2010.
"The fact that the first half of 2010 looks still likely to be
tough has to be taken into account for media planning as of now,
though," he said, adding that clients' media spending at Ogilvy
& Mather was holding up well amid the crisis.
"I think we are in line with the market, neither better nor
worse," he said. "A lot of our clients, like IBM (IBM), are
actually benefiting from the crisis, which gives us hope," Young
said, adding that the agency's diversified profile is also helping
it in the current downturn.
According to Young, the advertising market's upturn will be
sharp once it happens, as "clients are just waiting out there for
the right moment to invest again."
Young said Latin America remains a buoyant market, as is Russia
and Eastern Europe. He isn't yet seeing signs of a turnaround in
Western Europe or the U.S.
China and India may be among the first countries to profit from
a recovery.
Ogilvy & Mather did cut jobs, mainly in the U.S., Young
said. "It is not impossible that we might have to make some more
staff reductions," he added.
He said there weren't many big accounts up for grabs at the
moment, as clients have other priorities on their minds. He also
denied rumors that Louis Vuitton, one of its most prestigious
clients, may withdraw its accounts.
Ogilvy & Mather's other clients include Unilever NV (UN),
Motorola Inc. (MOT), Mattel Inc. (MAT), Nestle SA (NESN.VX) and
American Express Co. (AXP).
-By Ruth Bender, Dow Jones Newswires; +33-1-4017-1754;
ruth.bender@dowjones.com