Mark Read leaves behind a mixed legacy. WPP, which generates the vast majority of its revenue from advertising creation and media buying, is suffering from the economic environment, which is forcing clients to cut their marketing budgets and therefore their advertising spending. This is all the more true given that the United States is the world's largest advertising market—and also WPP's largest market—and that Donald Trump's trade policy could encourage companies to be even more cautious.

However, this remains a situation that is specific to the market as a whole, with its competitors just as affected by it. However, in recent years WPP has made more personal choices that have not brought any visible added value at the operational level. One example is the decision to develop in-house AI and data analysis capabilities. This investment could undoubtedly have been better optimized by outsourcing it to an external partner.

WPP is experiencing a slowdown in growth. By the end of 2025, revenue is expected to be lower than in 2022. Solutions put forward by the company in recent quarters are facing a complicated equation. Admittedly, WPP has managed to find ways to cut costs. Various analysts following the case also highlight the benefits of organizational transformation. But what is gained on one side is lost on the other. Revenues are declining, investments continue to be necessary in a rapidly changing market, debt remains significant, and shareholder distributions limit the capital available to restart the machine. The picture is further clouded by the fact that, for years, the United States has been cited as a strategic pillar. This strategy is now being completely called into question.

Major changes will therefore be needed at WPP to reposition itself against competitors who are also facing difficult times but are faring better, such as Publicis and Omnicom in particular. A break-up cannot be completely ruled out, even though the idea seems a little hasty at present.

There is a lot at stake. First, of course, a successor to Mark Read must be found. This person will need to be capable of getting the group back on track at a time when the relevance of the advertising industry is being called into question by the automated creation and distribution solutions offered by AI. Acquisitions—external growth—could be an interesting option, but at present, debt is limiting opportunities. All these factors explain the stock's slump, which is back to its May 2020 levels.

Comparison of operating margins of various advertising players (source: Bloomberg Intelligence)