New York - WPP Group chairman, Sir Martin Sorrell, controller of significant PR interests, admitted last week at the UBS Warburg Media Week conference that his "specialization [into PR] didn't work."
Sir Martin added that he saw no indications of an upturn in the marketing services industry. He told PRWeek that diversification into the PR business hadn't sheltered his company from the recession: "People have had such a terrible year, and PR and public affairs have been the most affected."
He said all WPP divisions would be given a reprieve from 15% operating margin targets he had expected for 2002, and was realistic about recent losses: "We had ten years of unprecedented growth. There had to be some correction in 2001."
WPP owns agencies Burson-Marsteller, Hill & Knowlton, Cohn & Wolfe, Ogilvy, and boutiques such as Robinson, Lerer & Montgomery.
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