WPP navigates global headwinds with AI, new business win to drive growth
By Felicia Nwosu
Despite economic turbulence and mixed quarterly figures, WPP says advertisers have not pulled back significantly on spending. Adnews report indicated that, In WPP’s latest update for the first quarter of the year, the global marketing giant reported a 2.7% decline in revenue excluding pass-through costs, settling at £2.482 billion. Still, the group maintained that its performance remains aligned with internal forecasts.
CEO Mark Read said the company is making headway in its transformation agenda, particularly through enhanced integration and a focus on data-driven solutions. Adnews report revealed that WPP reaffirmed its full-year outlook of flat to -2% revenue growth, citing stability in client investment levels despite “ongoing macroeconomic ambiguity.”
The merger momentum of VML and Burson has begun yielding returns, with fresh business from Generali, Heineken, and Levi Strauss & Co cited as early signs of traction. Read also emphasized the importance of the InfoSum acquisition, calling it a major step in reshaping GroupM’s data offering to favor AI-led identity alternatives.
The company highlighted expanded adoption of its WPP Open platform, which is now in use by 48,000 staff members — approximately 60% of its client-facing workforce up from 33,000 at the end of December.
Performance across markets was uneven. North America slipped 0.1% due to softer project-based demand, particularly impacting AKQA. However, sectors like healthcare and digital media planning offered some resilience. The UK experienced a sharper 5.5% drop, dragged by weaker activity in healthcare and auto, while Continental Europe declined by 4.5%, largely due to tough year-on-year comparisons, especially in markets like Germany and France. Spain was among the better performers in the region.
In Asia Pacific, performance was hindered by a steep 17.4% contraction in China, though India bucked the trend with 5.5% growth. Latin America and Middle East & Africa posted modest declines, while Central and Eastern Europe grew by 2%.
Among its business units, GroupM saw a 0.9% fall in revenue, reflecting earlier client losses in the UK and Europe, and ongoing market softness in China. Other integrated agencies dipped 4.4% amid reduced demand for one-off projects. Hogarth, however, posted robust growth, thanks to renewed tech client activity.
WPP’s public relations division reported a dramatic 39.5% drop, largely attributed to the completion of the FGS Global disposal last December. Burson’s performance mirrored recent trends, weighed down by restrained client spending in Europe. Nonetheless, the firm is optimistic about improved new business traction in the US market.
Specialist agencies were a bright spot, with overall growth of 1.2%. CMI Media Group maintained its strong momentum from last year, while firms like Landor and Design Bridge experienced a more stable operating environment despite slower project flows.
Mark Read concluded that while headwinds persist, the group remains focused on cost discipline and operational agility, and expects a stronger showing in the latter half of the year.
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