The news: WPP has taken another hit in earnings, underscoring the current unstable market defined by economic uncertainty.

• Profits dropped 71% pre-tax in the first half of the company’s financial year, falling to £98 million ($125.2 million), while operating profit fell nearly half (47.8%), reaching £221 million ($282.3 million).
• The company saw a 4.3% decline in revenues less pass-through costs during H1, reaching £5.03 billion ($6.8 billion) and a 5.8% decline for Q2, falling to £2.5 billion ($3.2 billion).
• WPP also cut its interim dividend in half, reaching £7.5 per share ahead of a strategic review.

The company cited Trump’s tariff policies and cuts in client ad spending as the reason for the massive drop, with current CEO Mark Read telling The Guardian that he “[has] never seen a more volatile market.” In response to the update, WPP’s stock fell 4.5% in early trading Thursday, building on a decline of approximately half its value YTD.

Loss after loss: It’s been a turbulent year for WPP.

• The holding company has seen a string of major account losses including Coca-Cola’s North American media business and its $1.7 billion Mars’ global media account to Publicis Groupe.
• WPP has lost key leaders in recent months, with Read stepping down in September and CMO/CEO of its Coca-Cola agency Laurent Ezekiel departing to rejoin Publicis.
• In response to its struggles, WPP slashed its 2025 outlook, anticipating annual revenues declining 3% to 5% and driving WPP’s stock to its lowest point since 2009.

Bouncing back: With agencies across the board struggling in the current economic climate due to difficulties securing new business sales (69.6% of respondents), driving revenue growth (46.9%), and adapting to volatile market trends (40.5%), per a SparkToro survey, WPP faces an uphill battle.

One of its best bets lies in its AI tool WPP Open, an AI-powered marketing engine that aims to integrate AI into creative and media campaigns to attract clients. But the holdco is still lagging in tech and data integration, and its AI investment hasn’t yet proven successful—meaning WPP will have to make significant advancements before this initiative can help offset losses.

Our take: WPP’s profit plunge serves as a wake-up call for agencies to accelerate transformation and prove value beyond media buying.

In an AI-dominated landscape, advertisers are demanding more for less. Agencies must now implement strategies that will ensure clarity, speed, and relevance, such as improving generative AI capabilities to deliver meaningful value and deploying predictive analytics to optimize targeting. Those who reinvent with precision and purpose will win advertiser and brand trust.