WPP’s 2019-2024 Story: A Holding Company in Search of Growth

For the last five years, WPP has constantly transformed:

→ Cutting costs.

→ Restructuring.

→ Betting big on AI.

Yet, despite all the moves, one fundamental issue remains:

→ Revenue is stagnant.

• Creative agencies are still in decline.

• Geographic markets like China (-21.2%) and the UK (-5.1%) are struggling.

Meanwhile…

→ Margins have improved (15.0%), a five-year high.

→ AI investment has reached £300m.

→ Cash flow remains strong at £738m.

What does this tell us?

→ WPP has mastered cost efficiency.

→ But efficiency isn’t growth.

Let’s break it down.

Year by year.

2019-2020: The COVID Shock & Reset

2019: The Last “Normal” Year

• Revenue → £13.2bn

• Operating margin → 14.4%

• Creative agencies were already losing relevance as the media took the lead.

Then came the pandemic.

2020: Financial Collapse

• Revenue → -9.3% drop to £12bn

• Operating loss → £2.3bn

• Net debt dropped from £4bn to £0.7bn due to emergency cost-cutting.

• Goodwill impairments of £3.1bn were a clear sign that WPP had overvalued its assets.

This was a complete reset moment.

What did WPP do?

→ Cut costs.

→ Merged agencies.

→ Streamlined operations.

It was about survival.

But survival isn’t the same as transformation.

2021-2022: The AI & Restructuring Bet

WPP shifted its focus from survival to reinvention.

How much of it was genuinely strategic, and how much was just reactionary?

• AI-powered WPP Open launched.

• The EssenceMediacom merger was an attempt to consolidate media strength.

• The VML & Burson merger is another move to simplify operations.

The results?

• 2021 → Revenue bounced back to £12.8bn (+6.7%).

• 2022 → Revenue surged to £14.4bn (+12.7%).

But here’s the problem:

→ Most of this growth came from GroupM (media), not creative.

→ Creative agencies continued to shrink.

→ Clients demanded speed and agility, but WPP was still too big and complex.

The WPP strategy?

→ More automation.

→ More AI.

→ Fewer people.

But does that build competitive differentiation?

2023-2024: Growth Stalls Again

By 2023, WPP looked more streamlined than ever.

• Revenue → £14.7bn (+2.1%) and growth slows.

• Creative agencies still underperforming.

• Media (GroupM) keeps the WPP alive.

Then came 2024.

• Revenue → -0.7% decline to £14.74bn.

• Revenue less pass-through costs → -4.2%.

• The UK and China are both struggling.

This is where the real issue becomes apparent.

WPP has built a leaner, more AI-driven, more consolidated business.

But where is the actual revenue growth coming from?

2024 In-Depth: The Numbers Behind the Challenge

WPP’s 2024 financial results show a financially stable company but strategically lost.

• Operating margin → 15.0% (highest in five years)

• Cash flow → £738m (healthy)

• AI investment → £300m (continuing the tech push)

BUT…

• Revenue is down.

• Creative agencies declined by -3.9% LFL.

• China (-21.2%) and the UK (-5.1%) are major weak spots.

Here’s what stands out:

• GroupM is still WPP’s backbone, but what happens if the media weakens?

• AI investments have yet to show revenue impact, but is this a cost-saving tool or an actual growth driver?

• WPP’s creative business needs reinvention, but is leadership too focused on margins instead of fixing it?

WPP’s 2025 Guidance:

→ Flat to -2% Growth.

Translation?

→ Even WPP doesn’t expect a turnaround.

The Creative Transformation Strategy: Where Is It?

WPPs have talked about “modernising” creativity for years, but what does that mean?

1) Agency Consolidations (VML, Burson, EssenceMediacom)

→ These moves simplify operations, but do they create real differentiation?

2) Investment in AI & Data (WPP Open, Choreograph)

→ AI can enhance creativity but hasn’t proven a revenue generator.

3) Loss of Market Leadership in Creativity

→ WPP was once known for groundbreaking creative campaigns.

→ Today, creative revenue is shrinking, and clients are choosing independents over holding companies.

Here’s what I see as the real problem:

→ Creative agencies are still structured for the past.

→ Clients want speed, agility, and deep expertise.

→ WPP is offering consolidation, efficiency, and AI.

In my view:

→ That’s not a creative transformation.

→ That’s a financial restructuring.

→ And that’s why growth isn’t happening.

The Big Questions WPP Must Answer

1) Does AI create revenue, or is it an efficiency tool?

2) Can WPP fix its creative business, or has it become a media company?

3) How long can WPP afford to operate without real growth?

WPP has spent five years optimising for profitability.

Now, it needs to prove it can GROW.

Like Publicis.

My Final Thoughts:

WPP needs a growth engine and not just cost savings.

Margins can only take you so far.

The holding company model isn’t broken, but it’s outdated.

So, what’s the next move?

→ Will AI finally deliver revenue?

→ Can WPP reposition creative agencies for the modern age?

→ Or will the industry continue shifting toward independent, agile players?

→ If you were WPP’s CEO, what would be your next move?

Ivan Fernandes

Marketing Management | M&A