Budget cuts, loss of profit, low revenue streams, and lack of investments are now the ‘new normal’ for large business groups and small-scale companies alike. National and international markets are not expected to experience the ‘old normal’ of the pre-corona world anytime soon. The bigger the business the heavier the loss. WPP plc, one of the most renowned British Group of Companies, has reported heavy losses.
WPP plc deals in businesses such as advertising, technology, public relations, media & communication, and commerce. Its advertising portfolio is most dynamic and accounts for the world’s most established and renowned agencies like Ogilvy, Wunderman Thompson (formerly J. Walter Thompson), and Grey Global. The group has also a vast marketing research and media network with companies as big as Mindshare, Kantar, and GroupM to name a few.
According to reports, WPP has suffered losses on asset write-downs in the face of the global health emergency. Europe and America are areas where COVID has been most destructive and these are also the markets where WPP has the biggest stake.
As they say, every crisis presents an opportunity, lockdowns, and social distancing presented the chance for markets to utilize the full digital potential. The recent data and carefully calculated trends forecast a surge in demand for online business and e-commerce. The digital boom, it seems, would still not be enough to measure up to the pre-corona situation.
In the first half of the year 2020, the net loss endured by WPP is around £2.6 billion. Similarly, the revenue of the group dropped to 12.3 percent as compared to the same period last year.
Terms like corporate cost cuttings and Work from Home are here to stay. Coronavirus has not just changed the market dynamics in terms of revenues and profits but also how we interact and deal with one another in a professional environment.
The new economic world order, created by Coronavirus, is merging tech-economy, digital ecosystems, and all other modes and methods of conventional business, marketing, and advertising. The basic rule of life on earth, the survival of the fittest is in play as it always has been. Stronger business conglomerates like WPP plc are more likely to come out as winners while the weaker ones will have to fight hard, adapt, and evolve to the changing world to stay in business.