WPP Group said today its third-quarter revenues grew ahead of analyst expectations but warned of an uncertain 2005.
The world's second-largest advertising company, and parent of ad agencies including J. Walter Thompson and Ogilvy & Mather, said it is on track to hit its full-year operating margin target of at least 13.8 per cent, with new business coming in "at an unprecedented level."
"We won $1.5 billion of new business in the first month of the fourth quarter, that's Nestle, Paramount (Pictures) and Toys R Us," chief executive Mr Martin Sorrell said in an interview.
The fourth quarter's new business wins to date have dwarfed the entire third quarter, when WPP added £234 million sterling of new billings. The company is also in the running for Unilever's media buying and planning account, which Mr Sorrell said should be decided "imminently", as well as Samsung Electronics' consolidated account.
The combined value of both accounts is about $3 billion.
"The jury remains out on 2005," the company said in a statement, voicing concern about the prospects of the US economy.
Ad spending in 2004 was also boosted by the so-called quadrenniel effect of the summer Olympic ~Games and heavy spending on the US presidential elections.