April was good to WPP according to its chief executive. While speaking at the International Advertising Association conference in Moscow this week, Sir Martin Sorrell said, “We’ve just seen what we call our flash numbers for April, which did show that change from what we saw in March, so we are starting to see for the first time growth in our business on a worldwide basis.”

His statement comes just two weeks after the world’s largest ad holding company (by sales) upped its full-year revenue forecast from flat to 2 percent. According to Campaign, WPP’s “growth” marks the first time the advertising business has seen an increase on a worldwide basis since the economic downturn hit at the end of 2008. Guess WPP wasn’t just taking the piss when it claimed, “2010 should be a more stable year (famous last words!)” in its recent earnings report.

More: “Sir Martin: Businesses Should Promote Sustainability Because That’s What People Like”

BigThink interviewed Sir Martin Sorrell, asking him about WPP’s outlook on sustainability and its evolution. Using his usual indirect directness, Sorrell explained that it’s just good business to do good things. Refreshing answer, especially considering this was an easy opportunity for him to say, “well, it’s just the right thing to do” which would have been false. Businesses do things that are good for business &#151 that’s why they’re not called non-profits. Why are good things good for business?

“We know from all the data we get from the companies like Millwood Brown and Research International and TNS, our research companies, that consumers admire and respect companies that invest in these areas &#151 that respect these areas. And we also know that people coming out of universities or art schools or design schools or thinking about switching from one company to another in our industry or adjoining industry, or even thinking about doing other thing within our own company, they’re held and attracted by commitment to these areas. If you’re in business for the long-term, this is something that you should do because it’s good business.”

He goes on to explain that sustainability is part of the business model now and that operating under that MO helps improve a company’s social status. Well, he forgot to mention that’s only true to the extent of WPP’s PR team’s ability to convince the press they’re “doing good”.

More: “If WPP Ran a Strip Club…”

PRNewser Editor Joe Ciarallo had the pleasure of rooting around in WPP’s preliminary earnings report for this year. So far, everything still sucks. But when life gives you lemons, make a joke out of them.

“2010 should be a more stable year (famous last words!).”

Oh Mimsy, shall we dine in the helicopter or at that little place tucked beneath the Falls of Niagra? I simply can’t decide.

Speaking of snobbery, check out ModSnob’s debut booze event tonight in the NYC.

More: “WPP is going a bit green…”

Since 2006, Schematic has been expanding with the help of WPP. The agency moved from LA to New York, basically took over the Dell account (in Austin) while Enfatico floundered, and generally grew as a recognized player in the industry (though on the smaller side). So it seemed odd when a late last year we got word that the Atlanta office had closed. It hasn’t, but things aren’t looking good, according to sources.

What was once a 30-or-so-person shop has been whittled down to just four (or three, depending on who you ask). We’re told that two weeks ago, three-four of the remaining seven were let go. That included the last “creative”, a CD, and leaves three dev guys and an accounts person. According to a source familiar with the matter, there aren’t any accounts left in the office &#151 employees there are serving other clients.

The matter, if true, speaks to a broader issue facing smaller market agencies with big market roots &#151 in a down economy, brands are likely looking for bigger name agencies in hubs like New York. Why not? Some will respond to that notion and say that in Schematic’s case, a lack of creative foresight is to blame (or something like that, who knows). And maybe they’d be right, but when cars are cheap, buy a BMW &#151 it has higher “perceived value” (and an analog clock in the dash!).

An agency representative did not immediately respond to a request for comment.

More: “Schematico’s CEO Responds to ‘Dumping’ Enfatico”

WPP held its earnings call this morning and the best summation Sir Martin Sorrell & Co. could offer was that Q3 was “less worse” than Q2. According to the release, revenue during the 3-month period ending September 30 rose 16.7% year-on-year to approximately $907 million. But this figure doesn’t reflect acquisitions like TNS and currency fluctuations, so if we’re talking reality here, like-for-like revenue growth was actually down 8.7%. Still, WPP can at least take solace in the fact that this is well below Q2′s 10.5% drop.

“There is little doubt that consumer and corporate confidence has recovered somewhat from the panic [of Q4 '08 and Q1 '09],” WPP said in its earnings call. But the company is quick to note that it will be “even Stevens” for its 2010 budgets, saying that if there is a recovery, expect a slow one.

While the least affected regions of revenue growth/decline continue to be Asia Pacific, Latin America, Africa, the Middle East and Central and Eastern Europe, Western Continental Europe took the biggest hit followed by the U.S. and U.K.

On the job front, while Sorrell did warn of cuts this year to the tune of 7,200, Paid Content says that he unfortunately exceeded this number. According to the report, headcount is now 11,232 lower than it was at December 31, 2008, denoting a 10% drop in staff overall.

More: “Never Mind the Earnings, WPP Sees Stock Rise”

AdAge may have ruffled some feathers when just prior to the Labor Day holiday, they published a story stating that WPP’s Grey was slated to pitch the new Chrysler work. Yesterday, the publication reported that WPP got a bit of a slap on the wrist when Ford learned of the Grey’s plans to pitch the Chrysler business. And that’s no surprise, really, since WPP’s Team Detroit services Ford.

“That Ford is putting its foot down and barring WPP from pitching a rival automaker’s account isn’t a surprise, especially when you consider its history with the holding company and its comparative position to Chrysler.

“Ford spent $1.9 billion in 2008 on U.S. advertising and ranks as the 11th largest national advertiser, according to Advertising Age’s DataCenter. It also was alone among Detroit automakers in maneauvering through the industry’s stunning downturn in 2008 and 2009 without taking a U.S. taxpayer bailout.”

WPP head Martin Sorrell was not immediately available for comment. However, we have heard that calls were made to Ford immediately following the publication of AdAge’s initial report (now unavailable online). Why WPP felt pitching this client was OK has yet to be revealed.

Slap Bet Montage


More: “Oh Look, Ford Has an Assurance Program Now”

Sir Martin Sorrell must be smiling in light of a MarketWatch report that states in London, WPP’s shares have advanced 3.9% ahead of its earnings call, in turn spurring Deutsche Bank to upgrade the umbrella company’s status from hold to buy.

A broker tells the trade, “Even if revenues remain under pressure, a radically leaner cost base means management can now paint a more positive view on margin prospects for next year.” Guess the leaner and meaner WPP explains Sorrell’s job cut forecast this year.

Update: What goes up must come down we suppose because even though WPP has seen its stock rise, Sorrell’s company has also watched profits plummet by 47% in the first half of ’09 according to the Guardian. July results though have been “less worse” according to WPP so don’t put away those party hats and streamers just yet.

More: “If You Work at WPP, Say Bye Bye to the Next 5 Years”

WPP shareholders voted overwhelmingly in favor of a program that, if successful, will make them and Sir Martin Sorrell (aka June 21), a lot of money. For you, WPP kids, that means more business based advertising rife with acquisitions and less advertising-by-creatives.

The deal will, according to Adweek, put some $96 million in Sorrell’s pocket, if he outperforms 9 other companies in the next 5 years. Oh S.Marty, what about the children?

Via

More: “Joke of the Day”

Martin Sorrell‘s WPP Plc has seen four straight months of “lower sales”, which will probably result in further job cuts this year.

“For the remainder of 2009 the short-term focus will continue to be on balancing staff costs and headcount, against the fall in revenues,” the company said. The number of employees dropped by 4,300, or 3.7 percent, in the first four months. Over half the people who left did so on a voluntary basis, London-based WPP said.

&#151 Bloomberg

According to the report, Sorrell says the first signs of the end of the downturn for his company will be seen in Asia.

Interestingly the company reported revenue with acquisitions are up 34%, but that isn’t enough to prevent the layoffs we’ve all seen coming for awhile.

Via

More: “Joke of the Day”

Got this one from a spy of mine a few weeks ago.

Q: What is Sir Martin Sorrell‘s nickname?

A: June 21

Click continued if you don’t get it. I didn’t, at first.

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More: “An Interview with Sir Martin Sorrell”

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