Global media agencies saw their revenues slashed substantially during the advertising recession of 2008-2009. Operating incomes declined but remained positive and operating margins for WPP and Omnicom decreased by approximately one percentage point over the year. However, significant endeavours to cut operating costs - mainly by reducing headcount - have contributed to stabilising these declines. The leading players also sought to diversify their activity mix to lessen their dependence on core advertising activities (creation, planning, buying) by embracing wider marketing services. Most notably, WPP's acquisition of TNS Media Research ? since renamed Kantar Media - which contributed to a great extent in bringing core advertising revenue share for the group down from 44.5 per cent in 2008 to 38.7 per cent in 2009. From a regional perspective, the groups continue to experience very difficult conditions on both sides of the Atlantic. 09FY organic decline rates stood at an average 10 per cent for Continental Europe with slightly better results in the UK region. North American revenues hovered at high single digit organic decline rates, except for French group Publicis who reported only -4.2 for the region. Due to the difficult economic conditions, numerous advertisers sought to revise and restructure their advertising spend. Budgets were drastically cut and a record number of contracts were open to new pitches. Amongst the most recent major contract changes are Unilever China's account (estimated $200-400m) won at the end of 09Q4 by Omnicom, and WPP's win in Q1 2010 of the consolidated UK COI account (worth £250m per year) which was formerly spread across a number of agencies. The increased competition forced agencies to charge lower commissions and fees which in turn further impacts negatively on their profitability. A return to growth, albeit a very moderate one, is anticipated for 2010 by media groups. WPP forecasts 2010 to be flat overall with a return to positive growth in 10Q2. Favourable comparatives with 2009 results and a number of events ? in particular the FIFA world cup ? will allow advertising markets to continue improving. With little perspective of a return to pre-recessionary growth levels in Western Europe and US in 2010, the groups will continue to focus investments on decreasing advertising share, and on increasing digital activities and the share of emerging market revenues.