The news: WPP cut its full-year outlook after reporting a 5.9% drop in Q3 organic revenues to £2.46 billion ($3.14 billion), extending a slowdown that now has the holding company projecting a 5.5% to 6% decline for 2025—worse than its earlier 3% to 5% forecast.
New CEO Cindy Rose, in her first quarterly report since taking over, said WPP “hasn’t gone fast enough” to meet client expectations, outlining an overhaul focused on simplifying operations and integrating its agency network. Global Integrated Agencies, which includes Ogilvy, VML, AKQA, and WPP Media, fell 6.2%, with WPP Media down 5.7% following client losses earlier in the year.
Why it matters: WPP’s decline illustrates how the traditional holding company model, built on size and service diversification, is struggling to keep pace with a market that prizes agility, automation, and measurable ROI. Rose’s pivot centers on three imperatives: AI, operational efficiency, and commercial innovation.
- The company recently launched WPP Open Pro, a self-serve AI marketing platform targeting small and midsize businesses. The platform introduces a usage-based revenue model, expanding WPP’s addressable market while aligning with the broader industry shift toward subscription-style software and automated campaign tools. But CFO Joanne Wilson cautioned that cost-cutting, including further layoffs, may still be needed to stabilize margins.
- But AI adoption alone won’t be enough. While WPP’s competitors like Publicis and Omnicom have also built AI-led planning and creative systems, the differentiator will be how fast these tools can simplify execution and deliver measurable performance. With CPG, auto, and tech advertisers tightening budgets, agencies must prove value in real time—something the fragmented holding model has struggled to do.
What this means for advertisers: WPP’s turnaround is a test case for the modern holding company. Brands are increasingly weighing whether to work with legacy partners or bring capabilities in-house through tech-driven, self-service tools. Major platforms like Google, Meta, and Amazon are already lowering the barrier to entry with AI-assisted ad creation, pressuring agencies to deliver full-funnel value.
Agencies, meanwhile, are adjusting by meeting clients where they are. That means offering scalable, tech-enabled options for smaller clients while preserving high-touch consulting services for enterprise brands. Agency success in 2026 will depend on merging creative, media, and data into a unified commercial engine—balancing automation with the bespoke problem-solving that keeps premium clients loyal.