(Corrects figures on Publicis contract wins, paragraph 13)
* WPP's Sorrell says trading tough this year
* Publicis' Levy say account reviews offer risk, opportunity
* Ad market forecast to grow around 4.2 pct this year
By Leila Abboud
CANNES, June 26 (Reuters) - The reluctance of big companiesto spend at a time of lacklustre global growth and fewer majorsporting events this year are dampening demand for advertising,said the chief executives of two leading ad agencies.
In separate interviews on Friday, Martin Sorrell of WPP and Maurice Levy of Publicis sounded cautiousabout the prospects for the advertising market, citing a lack ofvibrancy in the U.S economy, weakness in Brazil, Russia andChina, and Europe's continued fragility.
"There is a lot of uncertainty," Levy told Reuters."Companies have cash to spend but are not in the mood to do so,and consumers are not feeling confident either."
Research firm Zenith Optimedia, owned by Publicis, recentlycut its growth forecast for the global advertising market to 4.2percent down from 4.9 percent earlier this year.
For his part, Sorrell said that the major companies servedby WPP agencies such as Ogilvy and Mather and Group M were veryfocused on cost controls, sometimes to the detriment oflong-term investment in their brands and products.
"Business is tough. Clients are very demanding in anenvironment where top-line growth is lower than it was beforethe financial crisis began," he said.
UP FOR GRABS
Against that backdrop, the world's top six ad agencies faceupheaval because an unprecedented $27 billion in media buyingand planning contracts are up for review in the coming months atcompanies including Coca-Cola, Procter and Gamble and L'Oreal.
That is requiring them to defend some major contracts, whiletrying to steal others from rivals.
Morgan Stanley estimated that Publicis was the most exposed,with 1.7 percent of sales at risk and 2.5 percent of earningsper share. It is defending seven contracts including P&G,General Mills, Twenty-First Century Fox andCoca-Cola.
For WPP, about 1.1 percent of revenue and 1.6 percent ofearnings per share are risk as it seeks to keep nine contractsincluding Volkswagen and Unilever.
Both Sorrell and Levy claimed the reviews were anopportunity to win business, while acknowledging that the feeswould be lower on the new deals than the old ones.
"The reviews are worrying for the agencies but their effectswill also be felt on media owners because the price of ads willfall further," Levy predicted, referring to TV broadcasters,print outlets, and radio.
Levy said Publicis had already won one contract with beautyproducts maker Coty with billings of $100 million andanother with coffee specialist Keurig worth $150 million.
"If we lose all our current contracts and win none of thenew ones we're going for then our sales could drop 2 percent,"said Levy.
"But if we defend everything and win all the new ones, thenthey could go up as much as 3 percent."
Sorrell said that WPP's plan was to stress its technologyand data expertise in pitches to clients. WPP has made a big beton data with its Kantar unit, which Sorrell argues offers acompetitive advantage although a lower margin business.
"We are differentiated from our competitors and that willhelp in the reviews," he said. (Reporting by Leila Abboud; Editing by Keith Weir)