By Tim Bradshaw

WPP saw a stronger-than-expected finish to 2011, according to Sir Martin Sorrell, chief executive, as the marketing services group looks forward to improving conditions in the US ahead of a lucrative period of election campaign spending.

?We did very well last year,? Sir Martin told the Financial Times. ?We are looking at a budget with about a 4 per cent like-for-like revenue increase in it [in 2012] . . . 4 [per cent] doesn?t look crazy. If you?d asked me six months ago I?d have said 2 to 3 [per cent organic growth in 2012].?

Sir Martin expects a boost from the US presidential election of around $3bn to $4bn to the already-improving American advertising market. ?We all see America getting a little bit better, which is not surprising ahead of the election.?

However, he remains concerned that the ?rubber will hit the road? for the US in 2013, when the president – ?personally I think Obama will be re-elected? – is forced to tackle the deficit. Next year also lacks the lift of major sporting events such as the Olympics.

?I think and hope we will muddle through the eurozone crisis here in Europe,? he said, adding that trading in western Europe remained ?a hard slog?, especially in Spain and France, but ?least worst? in Italy. China and India ?continue to motor?, he said. In Brazil there are ?some signs of overheating?.

WPP is the world?s largest marketing services group by revenues and owner of international agencies including Ogilvy & Mather, JWT and GroupM.

?We are getting a positive double whammy,? Sir Martin said, from clients? expansion in emerging markets and ?very conservative? companies with strong balance sheets investing in brand building rather than risking capital investment in new capacity.

WPP increased its headcount by around 10 per cent from 100,000 people to 110,000 last year, excluding associate businesses and freelancers, suggesting further expansion this year.

?I?m not complacent about 2012, we have to work hard,? Sir Martin said, ?but I think we?ll add to our revenues and to people in the business.? WPP had expected sales growth of about 6 per cent in 2011 but cut that estimate to 5 per cent in October after an underwhelming performance in its market research unit. ?We came out ahead of 5 [per cent organic growth],? Sir Martin said.

Sir Martin?s optimism contrasts with the WPI Advertising Confidence Index, a quarterly survey of agency executives. ?While confidence in current business conditions may have stabilised, agency managers in the North American and Europe/Middle East/African regions are less confident when it comes to making decisions like investing in staff that would be a prelude to growth in the new year,? the WPI said on Wednesday.

WPP shares closed broadly flat at 746p but have risen about 10 per cent since the start of the year.

? The Financial Times Limited 2012