WPP's Sorrell warns Ebola and IS ‘grind down’ ad spending

WPP founder Sir Martin Sorrell today warned that the Ebola epidemic, the rise of Islamic State and unrest in Hong Kong are “grinding down” confidence among major advertisers.

The world’s biggest advertising group saw a slowdown in revenue growth between July and September. “If you look at the geopolitical risks, they have become more complex,” the chief executive said, pointing also to continued “fragility” in the eurozone.

“All that adds up to a lot of uncertainty, which makes clients cautious. These uncertainties grind people down.”

Advertising is seen as a bellwether of the economy and Sorrell pointed to weaker results in the past three months from companies such as Procter & Gamble and Unilever. “They haven’t made it with the top line, they’ve made it by cutting costs,” he said, referring to pressure on sales.

He reiterated fears about a UK referendum on leaving the European Union in 2017, saying it is “troublesome” and the risk has moved up the agenda after the Scottish independence vote.

“We’re better inside the tent than without,” he said. WPP’s net sales rose by 3% to £2.76 billion in the three months to September against 4.1% in the first half of the year.