• by Paul Gough , June 28, 2004

Long the bright spot of the advertising industry, media planning and buying continues to lead growth at WPP.

In the first five months of 2004, revenues rose 6 percent compared to the same period a year ago, including a 14 percent jump in advertising and media investment management. The U.K.-based holding company, which owns Mediaedge:cia and Mindshare, held its annual shareholder meeting Monday afternoon in London.

Adjusting for currency and acquisitions, WPP's revenues rose 2 percent through the end of May. Dollar amounts were not released for the first five months, but WPP said the growth trends were similar to the first quarter.

In the quarter ended March 31, WPP's total revenues rose 5.7 percent to $1.7 billion, including a 7.3 percent increase in advertising/media management (to $804.4 million).

"The European Football Championships, the Athens Olympics, American political advertising, and the U.S. presidential elections all add up to a better climate for advertising and marketing services expenditures," WPP said in a statement read at Monday afternoon's meeting.

North America--particularly the United States--is showing strong growth, with five-month revenues up more than 10 percent. In the first quarter, North American revenues were down 2 percent to $565.7 million.

"Media investment management continues to be the most buoyant part of our business," WPP said. But other areas were strong as well: Health care/branding and identity revenues were up 18 percent, research and consultancy up 5 percent, and public relations/public affairs--a sector hit hard in the recovery--was up 7 percent. The PR sector began to turn around in the tail end of last year, and has continued through this year.