WPP bets big on AI after a slow start to 2025
WPP‘s revenue edged lower in the first quarter of 2024, as macroeconomic uncertainty and cautious client spending, as well as competitive pressure, weighed on advertising budgets globally.
Yet, the firm is leaning heavily into AI, data and integration to fuel long-term growth, securing new business wins and pressing ahead with its transformation strategy.
The advertising giant reported revenue less pass through costs of £2.48bn, down 2.7 per cent on a like for like basis, while total revenue slipped 0.7 per cent to £3.23bn.
Performance was in line with expectations flagged in February, and WPP reiterated its full year outlook for minus two per cent revenue growth and stable margins.
Chief executive Mark Read said momentum is building across the two recently merged agencies, Burson and VML, with new client wins like Heineken and Levi’s in the quarter
Meanwhile, the group’s acquisition of Infosum- a data collaboration platform – aims to deepen its AI-driven targeting capabilities within the firm’s investment arm.
These results come as rivals like Publicis and Omnicom have also warned of a soft start to the year, though both have seen regional strength in America, as well as continued client demand for data-led services.
Amid global tariff tensions, agency holding groups are facing pressures not only on ad budgets but in navigating new regulatory environments on data and digital identity.
Though WPP wasn’t directly affected by recent tariff headwinds, the firm flagged that rising trade barriers could have an effect on clients’ strategies and marketing spend in the long term.
“We remain agile and vigilant”, Read said, “and will continue to be disciplined on how we are managing our cost base.”