The news: WPP, once the top advertising group globally, will be retired from the FTSE 100 after almost 30 years as its market value has fallen dramatically in recent years.

• WPP’s market capitalization has decreased from around £24 billion ($22.2 billion) in 2017 to £3.1 billion ($2.9 billion) in 2025.
• Its share price has plummeted 62% in 2025 alone following two profit warnings.

What’s plaguing WPP? The advertising group is struggling from a string of client losses and difficulties keeping pace with rivals’ AI and data capabilities.

• The holding company is struggling to match its competitors’ strength in AI and data. Competitors like Publicis and Omnicom are surging ahead with sophisticated AI tools and expansion of first-party data through strategic acquisitions. WPP, meanwhile, has been slow to prove the effectiveness of its AI initiatives.
• The company lost Coca-Cola’s US and Canada media business to Publicis Groupe earlier this year, exacerbating issues like its stock price falling to a four-year low and increasing investor skepticism. WPP also lost its Mars’ global media account, valued at $1.7 billion—again to Publicis.
• WPP is simultaneously struggling against pressure from tech platforms as brands increasingly rely on self-service tools from major platforms like Google, Meta, and Amazon. The trend of accessible AI-assisted ad tools puts a burden on WPP to prove its value beyond what Big Tech platforms provide.
• New CEO Cindy Rose has admitted to WPP’s struggles, stating the company “hasn’t gone fast enough” to meet client expectations.

The risk to the ad industry: WPP’s difficulties are threatening service stability and technological competitiveness for its advertisers while raising broader questions about the future of the agency model.

• Key account losses are raising concerns about whether WPP can maintain consistent service quality. If WPP can’t keep pace with technological innovations, advertisers risk missing out on the latest advancements in automation and data-driven targeting.
• Clients are looking for leaner, agile partners that offer integrated solutions rather than disconnected services from different agency brands. Surges in online advertising driven by Google and Meta are simultaneously changing how media is planned and bought, and the value of the standard agency business model is being questioned as AI automates tasks formerly handled by agencies.

What advertisers should do: Removal from the FTSE 100 and a plummeting market value indicates that WPP’s struggles are deep-rooted and unlikely to vanish in the near future. For advertisers, the current imperative is to rethink partnerships, explore alternatives, and increase diligence.

• Reviewing contracts with legacy holding companies and evaluating whether current agencies are maintaining pace with rapid technological innovation is paramount to remain competitive. Turning to agencies with proven strength in data and AI will allow advertisers to meet modern demands.
• Alternative options are proliferating and shouldn’t be ignored. In an AI-driven world, the agency’s role is important but shrinking. In-house capabilities or experimenting with AI service offerings from major tech platforms could drive more sustainable growth.
• Brands should see this turning point as a signal of broader industry shifts and increase diligence. Remaining alert to changes driven by AI innovation and direct-to-platform media will influence buying strategies in the future.