• by Joe Mandese  @mp_joemandese, June 2, 2009

Citing the continuing effects of "economic pressure" in its key markets, WPP Group, the world's largest buyer of media, this morning reported that "like-of-like" revenues have fallen 6.7% during the first four-months of 2009, compared to the same period a year ago. The disclosure, made in a "trading update" to investors, indicates that advertising and media services may be performing relatively better than WPP's overall mix of marketing and research services.

"By communications services sector, advertising and media investment management continues to be the least affected by the recession on a like-for-like basis, with public relations and public affairs and branding and identity, healthcare and specialist communications (including direct, Internet and interactive) a little more affected and information, insight and consultancy most affected," the company reported.

While WPP did not break out the results of its "Internet and interactive" operations, digital media generally has been performing better than traditional media and advertising services across the rest of the industry, and in recent quarters WPP has emphasized its growing market share, claiming to be Madison Avenue's dominant digital player.

Geographically, WPP said the worst effects of the economic recession continue to be felt in the U.S., and have spread to the U.K. and Continental Europe, but that Eastern Continue Europe continues to show revenue growth through the first four months of the year.

"As in the first quarter, some countries were more affected, such as Spain, Italy, the Netherlands and Denmark, but others such as Russia and Poland performed relatively better year to date," WPP reported, adding, "In Asia Pacific, Australia, Japan, Singapore and South Korea continued to be difficult, but mainland China still showed like-for-like growth, with India having a tougher April, in front of the general election."

WPP said that cost-cutting efforts have helped maintain its margins, which are tracking "above budget," but noted that the moves have significantly reduced the staffing of one of Madison Avenue's largest employers.

"As a result, the group's operating companies are reducing headcount and associated staff costs, in line with the forecast revenue decline. In the first four months of 2009 the number of people in the group fell by almost 4,300 or 3.7%, in comparison to the pro-forma figure at 31 December 2008. Over half of the people who left, did so on a voluntary basis," WPP said.