There can only be one winner in the advertising world, and WPP is the one. The London-based media holding ranked as the largest advertising company in the world in 2023 based on revenue. The
- Omnicom Group, the Interpublic Group of Companies, Publicis, and Dentsu. First founded in 1971 as a small wire shopping basket manufacturer named Wire and Plastic Products plc, WPP commenced its foray into advertising in 1985. That year, its founder Sir Martin Sorrell bought a controlling stake with the aim of turning the company into a global marketing services enterprise. Today, WPP operates in the realms of communications, advertising, public relations, commerce, and technology.
Profit takes a hit amid economic uncertainties
WPP’s global revenue has more than doubled in the past 17 years, going from 5.91 billion British pounds in 2006 to 14.9 billion in 2023. Despite the company’s slight revenue increase in 2023,
its profit plummeted from 775.4 million pounds to 197.2 million in 2023, as clients cut back on spending across the ad industry. North America lined up as
WPP’s largest market in 2023, with western continental Europe clinching second place. As of the fourth quarter of 2023, WPP recorded its
highest regional revenue growth in India, trailed by the United Kingdom.
Operations simplified across the board
Since the ousting of Sorrell in 2018, WPP has set about to simplify its network. 2023 was a year of internal transformation for the company, with its
PR and marketing agency holdings being restructured into six key brands – AKQA, Ogilvy, VML, Hogarth, GroupM, and Burson. Supervised by CEO Mark Read, the reshuffle’s aim is to deliver substantial cost savings from 2025 onwards. In January 2024, WPP announced it would merge its two largest communications agencies Hill & Knowlton and BCW, in the latest internal association aimed at boosting efficiency within the company. In 2023, the company employed over 114 thousand people across more than 100 countries. ´
Plans to utilize AI to uplift stagnant sales growth
WPP is looking to gain a solid foothold in the artificial intelligence (AI) race among holding companies worldwide, as it ramps up its focus on technology, data, and AI to boost its sluggish growth. Early in 2024, it pledged to spend 318 million dollars per year on
technology to support its artificial intelligence (AI) strategy, more than IPG and Publicis. WPP has been working in AI-related projects as far back as 2014, when it built AI optimization tech for Tesco. In May 2023, WPP partnered with software company NVIDIA to create a generative AI-fueled content engine for digital ads. As part of its AI strategy, the company has been developing ’brains,’ or custom-made AI models, for its clients – datasets including extensive information regarding an advertiser’s business and molded on its brand guidelines and tone of voice.
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