Sorrell

WPP Group warned that revenue growth slowed in Q3, rising four percent on a like-for-like basis, compared with organic growth of five percent during the first half.

The annoucement sent the stock down almost four percent on Friday, and Merrill Lynch described the news as "a disappointment," according to AFX. WPP Group cited weaknesses in both the domestic (U.K.) and Eastern Europe markets as the source of the slip in revenue.

The U.K., with one percent growth, was WPP's weakest territory, which WPP chief executive Martin Sorrell attributed to the continuing shift of marketing spending to the internet. He estimates that online ads now account for some 14 percent of the U.K.'s advertising market - twice the global average. Despite the weaker-than-expected overall revenue increase, WPP said it believes the remainder of the year will be better and that it is still on track to reach its yearly financial goals.

Sorrell told AFX he would be "disappointed" if WPP didn't deliver organic growth of five percent for the full year after it nearly did so in the first nine months. He added that, overall, advertising should grow 3-4 percent in 2007, fueled largely by spending for the 2008 Beijing Olympics and the 2008 U.S. Presidential Election.