Merrill Lynch has said that it expects global advertising giant, WPP to grow by up to 4% this year, as strong underlying business momentum is spurred on by a general recovery and key boost from the Olympics.
During the first half of 2004 the advertising and media recovery has broadened, said Merrill Lynch and is now more or less in line with marketing services i.e. public relations and healthcare. While, Europe continues to pick up and continues in the recovery phase, conditions in the UK remain ‘tough’.
Although steady growth is expected for WPP, Merrill Lynch has said that poor market sentiment and links to the acquisition of American advertising agency, Grey Global (see WPP Considering £500 Million Rights To Buy Grey), could hold back the group’s performance in near term.