WPP sees "very tough" '09, but no negative growth

By Dominique Vidalon

BARCELONA, Nov 19 (Reuters) - The chief executive of WPP Group (WPP.L), the world's second-largest advertising company, said on Wednesday he expected 2009 would be difficult, but that conditions in October had not materially worsened.

"Business did not fall off a cliff as some surmised," Martin Sorrell told the Morgan Stanley annual Technology, Media and Telecoms conference in Barcelona.

Though 2009 would be "a very tough" year, he said he would be surprised if advertising budgets shrank. Sorrell would not make a forecast for the fourth quarter 2008, only saying that it was "difficult for clients to cancel at this time of the year" and that "making very short-term adjustments to media schedule is quite difficult".

"We have to see how the Q4 plays out, he said.

He would not make any detailed predictions for 2009, saying his group was going through budgets.

"I find some of the analysts' commentaries excessively pessimistic," he said.

"Financial markets will start recovering toward mid-year, and 2010 will see a recovery of sorts," he added.

Sorrell, just back from Washington, also said he believed the new U.S administration would come up with a bailout package for the distressed car industry early next year.  Continued...