WPP losses intensify as hopes turn to AI ‘golden age’ for marketing

Core Insights - WPP's new CEO Cindy Rose acknowledged the company's recent performance as unacceptable during her first earnings call since taking over on September 1, replacing Mark Read [2][3] Financial Performance - WPP reported a 5.9% decline in revenue less pass-through costs on a like-for-like basis, totaling 2.46 billion pounds (approximately $3.2 billion) in Q3, which was worse than expected [3] - The company revised its full-year guidance, now anticipating a decline in like-for-like revenue less pass-through costs between 5.5% and 6% for 2025, compared to previous estimates of a 3% to 5% decline [3] - Q4 is projected to see like-for-like declines between 7.5% and 9.5%, which is concerning for a typically busy period [3] Agency Performance - WPP's global integrated agencies experienced a 6.2% decline in like-for-like revenue in Q3, with the media-investment arm, WPP Media, down 5.7% [4] - WPP Media has faced significant account losses, including the Mars business and Coca-Cola's media and data duties in North America, which were lost to Publicis Groupe [4] Client Dynamics - CFO Joanne Wilson noted volatility in client budgets and macroeconomic uncertainties affecting various sectors, leading to sustained growth headwinds from client losses into 2026 [5] - WPP is focusing on expanding its work with existing clients and has seen an increase in activity in the new business pipeline [5] Strategic Initiatives - WPP launched WPP Open Pro, a self-service product that allows brands to access WPP's AI solutions without hiring a specific agency, targeting small- and mid-sized marketers [6]