"WPP's creative agencies have underperformed financially for years, with revenues from VML, Ogilvy and AKQA falling 5.8% in the first half of 2025, according to the parent company's own financials. From the point of view of WPP's leadership, there's a clear argument in favor of this next remodel. Holding companies (or operating companies) are attempting to meet the needs of advertisers that spend in the billions across dozens of channels, requiring generative AI to produce thousands of creative assets and millions of data points."
"It's why WPP and Dentsu have been tweaking their production units lately. And it's why Omnicom, Stagwell and WPP have each launched agentic marketing platforms in recent months. The business of "big ideas" that built companies like Ogilvy or FCB in decades past won't make the difference between CMOs comparing AI-enabled content machines, or help them convince shareholders that they have a sustainable business model. Jeremy Goldman, eMarketer analyst, recently wrote that such initiatives represent "coordinated retreats dressed up as innovation.""
WPP is set to restructure its creative agencies on McKinsey's advice after years of underperformance and revenue declines across VML, Ogilvy and AKQA. The Super Bowl featured more spots made by independent agencies than by the industry's largest employers, signaling a market preference. Holding companies are building AI-enabled production capabilities to serve massive advertisers and generate thousands of assets and data points. Omnicom, Dentsu, Stagwell and WPP have reorganized or launched agentic marketing platforms and pared back creative shops. The traditional 'big ideas' model is unlikely to compete with AI-powered content machines, while independents pursue distinctive creative work.
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