WPP forecats Mena revenue of $440m

Dubai: WPP, the world’s largest advertising company, expects to grow revenues in the Middle East and North Africa by 10 per cent this year as the economic growth of the Gulf countries drives advertising spending, according to the company’s director for the region.

The advertising giant, based in London, forecasts revenues of $440 million and is looking to hire staff in the Middle East and North Africa this year, Roy Haddad, director for the region, told Zawya Dow Jones.

“We are still growing at an average of 10 per cent on our topline revenue growth but where I still feel there is a lot of pressure is the willingness by advertisers to invest at the right level compared to other regions,” he said. “Obviously, there’s a lot of uncertainty around key markets such as Egypt.”

Haddad was appointed the first director for the Middle East and Africa region in July last year, and as part of the new role, he is currently looking at acquisition opportunities in Morocco, Egypt, Lebanon and Saudi Arabia, he said.

WPP is the parent company for 44 companies and agencies in the region such as MEC, Burson-Marsteller, Hill+Knowlton Strategies, Kantar, Mindshare, Ogilvy, Y&R, and JWT, of which Haddad is chairman for the Middle East and Africa.

The parent company, headed by Sir Martin Sorrell, plans to grow its staff based in the Middle East and Africa from 3,800 to about 4,000 by the end of the year, as revenues are boosted by the growth in digital communications, Haddad said.

Communications services are growing much faster than traditional advertising services, while a dichotomy in spending existed between countries such as Egypt, Tunisia and Lebanon, and those in the Gulf, such as the UAE and Saudi Arabia, he added.

“The growth in the Gulf will be compensated by a lack of growth in other markets,” said Haddad. “It’s the long-term outlook that’s not clear and as we all know marketing works best when you have a long term outlook.”

WPP said in March that global organic revenue, which strips out exchange rate movements, acquisitions and disposals, rose 2.9 per cent to £10.37 billion in 2012.