The CEO of WPP, the world’s most prominent advertising company in terms of revenue, has said that “Worst is Behind Us “while referring to the budget cuts in advertising. Mark Read has expressed his optimism about the gloom looking due to pandemic impact. Over the last few months, the Covid-19 pandemic has created a stir in the global economy impacting industries, and this has led to massive advertising expenditure cuts.
Mark Read, CEO of WPP Talks About Evidences of Recovery
However, Mark Read believes that the worst is already over, and the things would recover from now. The top executive of the world’s largest advertising firm by revenue has indicated that he sees recovery in his company’s advertising and campaigns. Read added that the advertising industry is actively looking to get back on track with business.
Global Cut in Advertising Budget
With everyone cutting marketing costs across businesses, the advertising industry has been severely impacted in 2020. The revenues have plummeted substantially, making survival difficult for the agencies and advertising companies. Media companies’ overall revenue is estimated to decrease by a whopping 42 billion dollars.
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Tough Times for Advertising Industry
The loss is so grave that it cannot be substantiated easily. The advertising spending shrinks massively as there is an economic recession already around the corner due to the Covid-19 outbreak.
Covid-19 Has Opened Eyes
The CEO of WPP further added that this pandemic was quite an eye-opener and gave him great realization, especially regarding the money spent on the unrequired travel. There is also much emphasis on the utility of short remote meetings as they help save funds. He added that the quarantines imposed due to the virus have provided acceleration to creativity and referred it to as “decades of innovation packed into about four months.”
Major Fall in Advertising Revenue
As per a report by the Interpublic Group in June, the media owners’ revenue is going to massively come down to a whopping 7.2 percent, which is around 540 billion dollars this year as the industry is hit be Covid-19 triggered recession. The cut back in the advertising budgets across the globe has become challenging for the media owners. Now the advertising companies, including WPP, are committed to bringing its business back on track and shifting the focus from the promotion of safety messages.