
"Clients pointed to the fact that our complexity got in the way of true client obsession. We were siloed. We were hard to navigate, said Rose on the Q4 earnings call earlier this week. It's taken us too long to land our data proposition and our media business has suffered as a result."
"WPP, while not the first agency holding company, in many ways established the modern industry model through a relentless approach to acquisition. Now, the owner of agencies like VML and Ogilvy wants to unwind the complexity created in the wake of that aggressive expansion, vying to become a single company that can put sophistication in areas like artificial intelligence first."
"The shift to anchoring WPP's business around four units—creative, production, media and enterprise solutions—and a single shared operating system, WPP Open, mirrors the approach taken by rivals like Publicis Groupe, which over time have prioritized service areas over individual agencies."
WPP, a major advertising holding company owning agencies like VML and Ogilvy, is implementing Elevate28, a strategic overhaul to simplify its organizational structure. The company aims to transition from a siloed, complex model into a single integrated entity organized around four core units: creative, production, media, and enterprise solutions, supported by a unified operating system called WPP Open. CEO Cindy Rose acknowledged that organizational complexity hindered client focus and delayed implementation of data and media strategies. This restructuring mirrors approaches by competitors like Publicis Groupe, prioritizing service areas over individual agencies. The move occurs amid financial pressure, with organic revenue declining 6.9% in Q4 2025 and further declines anticipated for early 2026.
#organizational-restructuring #advertising-industry #business-strategy #digital-transformation #holding-company-consolidation
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