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WPP: $2.6 billion market value wiped off world's largest ad agency

Companies such as Procter & Gamble and Unilever are reducing the number of agencies they work with, while drinks-maker Diageo said it is saving money across media buying and live experience marketing. WPP's advertising and media investment management function was its strongest-performing sector, including ad agencies J. Walter Thompson and Grey and media agencies Mindshare and MediaCom. Revenue for the function was down 0.1 percent for the year, but up 1.8 percent in the fourth quarter of 2017. WPP's public relations and public affairs businesses were up 0.7 percent like-for-like in revenue across the year. WPP announced Tuesday that it would merge PR agencies Burson-Marsteller and Cohn & Wolfe but Sorrell denied this was simply a cost-cutting measure. "It's a step taken to try and improve the offer. If I looked at Cohn & Wolfe, for example, they had a very good year last year. Burson — a bigger business — had a tougher year. In terms of topline growth… that becomes increasingly critical, so bringing these two businesses together… will improve the prospects for the combined business.

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