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Penny Machines

oil on canvas
22 x 20 in

Penny Machines
oil on canvas
23¾ x 29¾ in

Stack of Books
oil on canvas
30 x 24 in

Seven Suckers
oil on canvas
19 x 23 in

Twin Jackpots
oil on canvas
30 x 46 in

oil on canvas
20 x 26 in

Cake Slices
oil on canvas
20 x 16 in

Growing our revenues

5 Fifth, to continue to place greater emphasis on revenue growth. One legitimate criticism of our performance against the best-performing competition is our comparative level of organic revenue growth. Looking back over the last decade, 2000 was a bumper year but unsustainable. In 2001, we moved back into the middle of the pack. There was a significant revival in 2002 and 2003, when we were one of only two of the major companies that showed revenue growth. 2004 was punctuated with a number of high-profile wins, resulting in the second strongest organic growth performance in the industry, and 2005 and 2006 saw strong growth again among the leaders in the industry. New business wins in 2007 were unprecedented in the history of WPP and revenue growth again impressed against the competition, particularly the Big Four. In 2008, revenue growth trailed a little behind our major competitors and, most recently, the Group’s revenue decline in 2009 was less worse than most. Throughout all years, margin performance was at the top end of the pack.

Estimated net new billings of £3.1 billion ($4.8 billion) in 2009, slightly up on 2008, reflected a consistently high level of wins throughout the year. The Group was ranked second in two of the three major industry new business surveys in 2009. Net business wins (even excluding important ‘saves’) have been extremely strong so far in 2010, totalling approximately $2 billion by the end of February according to trade sources and with the Group heading all new business tables for the first quarter.

          Organic revenue growth

Our practice development activities are also aimed at helping us position our portfolio in the faster-growing functional and geographic areas. During 2009, acquisitions and increased equity stakes were focused on Advertising and Media Investment Management in Italy, Portugal, Israel, South Africa and Australia; on Consumer Insight in the US, the UK, Russia, China, the Philippines and Singapore; on Public Relations & Public Affairs in Poland and Vietnam; on direct, digital and interactive in the US, the UK, France and Hong Kong; and on Healthcare Communications in France and China.

So far in 2010, the Group has made acquisitions or increased equity interests in Advertising and Media Investment Management in Brazil, Poland and Israel and in direct, digital and interactive in the US and UK.

These acquisitions continue to move us forward to our previously described strategic priorities; expanding the market shares of our businesses in Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe to one-third; in marketing services to two-thirds; and in consumer insight, direct, digital and interactive, to one-half.

We intend to expand our strong networks – Ogilvy & Mather, JWT, Y&R, Grey, United Network, Bates 141, MindShare, MEC, MediaCom, TNS, Millward Brown, Kantar Media, Kantar Health, Kantar Retail, Kantar Worldpanel, Hill & Knowlton, Ogilvy Public Relations Worldwide, Burson-Marsteller, Cohn & Wolfe, OgilvyOne, Wunderman, OgilvyAction, G2, 24/7 Real Media, CommonHealth, Sudler & Hennessey, Ogilvy Healthworld, ghg, The Brand Union, Landor and Fitch – in high-growth markets or where their market share is insufficient.

We will also enhance our leadership position in consumer insight by further development of our key brands with particular emphasis on North America, Asia Pacific, Latin America and Continental and Eastern Europe. We will continue our growth of research panels and have established a Kantar-wide operational capability, which will be consolidated with the same function at TNS. We will reinforce our growing position in media research through Kantar Media, which includes our investments in television audience research through the former TNS Media Intelligence and TNS Media Research, and IBOPE and Marktest, which, combined, is the market leader outside North America.

In addition, we intend to reinforce our worldwide strength in direct and interactive marketing and research through our traditional channels such as OgilvyOne, Wunderman, G2, Blanc & Otus and Lightspeed. Although the early 2000-2001 compressions in financial valuations following the internet bust initially offered significant opportunities, we will now also invest directly in the new channels through start-ups, particularly as US and French valuations in search, for example, are still prohibitive, despite the financial crisis. Other opportunities will be sought to enhance our online capabilities.

Lastly, we will continue to develop our specialist expertise in areas such as healthcare, retail and interactive and to identify new high-growth areas.

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