Sorrell predicts rapid correction

The economic situation for the global communications industry could get worse before it gets better, according to WPP Group chief executive Sir Martin Sorrell.

Speaking at the British Design & Art Direction Education Summer School for creativity in business last week, Sorrell described the economic climate as ‘a rapid correction’ of the excesses [of the share valuations of digital businesses] in the late 1990s. This could hit employment prospects and lead to more freelance than full-time opportunities in the creative industries.

Sorrell says that the high media cost and falling audiences for network television is encouraging more global clients to invest communication budgets away from TV advertising to the Web, direct marketing and sales promotion.