Britain’s WPP is preparing to reorganise its creative advertising operations by bringing its three main agencies under a single umbrella, according to a report by the Financial Times. The move comes as the world’s largest advertising group faces mounting pressure to simplify its structure and respond to rapid changes driven by artificial intelligence.
Under the proposed plan, WPP will establish a new holding structure called WPP Creative, which will house its leading agencies including Ogilvy, VML and AKQA. While these agencies will retain their individual brands and continue to operate independently, the new structure is intended to streamline WPP’s creative offering for clients.
The restructuring would mark one of the first major strategic initiatives under Cindy Rose, who took over as chief executive in September. Rose, a former Microsoft executive, has been tasked with reversing WPP’s recent business struggles after the group lost several major client accounts last year, including contracts linked to Mars and Coca-Cola in North America. Those losses pushed WPP’s shares to their lowest levels in nearly three decades.
WPP shares rose as much as 2% in early trading following news of the planned reorganisation, before easing to trade broadly in line with the UK mid-cap index. The stock had fallen more than 11% during a market selloff last week, reflecting investor concerns that advances in artificial intelligence could disrupt traditional advertising and marketing business models.
The Financial Times reported that WPP Creative is expected to be unveiled later this month and will sit alongside the company’s already integrated media and production divisions. The aim is to make it easier for clients to navigate WPP’s services at a time when demand is increasing for data-driven solutions and AI-enabled capabilities.
WPP has not commented publicly on the report.
