Defiant WPP asserts the power of ads with a surge in revenues

The advertising and marketing industry is "defying the doomsters", a bullish WPP declared today.

The world's biggest communications company, led by Sir Martin Sorrell, said commentators who claimed "marketing was history and that brands were dead" have been proved wrong.

Chairman Philip Lader, speaking at the annual general meeting in Dublin, where it has moved for tax purposes, shrugged off industry fears about an ad slowdown as UK revenues grew over 7% in the first four months of the year.

WPP's full-year forecast is for "stronger growth in the United Kingdom across all the group's businesses", which include top agencies Group M, JWT, Ogilvy & Mather and Hill & Knowlton.

Group profits are "well ahead of last year", with worldwide revenues up 6.2% on a like-for-like basis over the four months. That is slightly slower than the 6.7% rate reported in the first-quarter results.

The improved UK forecast contrasts with slowing growth in the US. Revenues from the Bric countries of Brazil, Russia, India and China surged 17% while the "Next 11" of smaller developing countries was up 14%.

But the Middle East and Japan are suffering because of the impact of the Arab Spring and tsunami.

WPP also said it is taking a 70% stake in Brazil's largest independent digital agency, F.biz.

The meeting was in Ireland, where WPP's tax domicile is based. Sorrell plans to return to the UK after Chancellor George Osborne eased rules in the Budget.