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WPP touted “resilient performance” in the Q2 earnings report it released on Friday, despite lowering its full-year forecast.
The holding company’s organic revenue rose 2% in the first half of 2023 compared to the same period last year, reaching $7.4 billion. In Q2, revenue in the US fell 4.5%—WPP’s earnings report stated that its North America region saw a decline, primarily due to decreased spend from technology clients.
WPP revised its guidance to 1.5%–3% growth for the year, down from the 3%–5% growth it forecasted last quarter.
“Our media business, GroupM, grew consistently across the first six months as did our businesses in the UK, Europe, Latin America and Asia-Pacific. Client spending in consumer packaged goods, financial services and healthcare remained good and, despite short-term challenges, our technology clients represent an important driver of long-term growth,” CEO Mark Read said.
Despite suffering losses from its tech clients, WPP has been strengthening its tech investments, particularly in AI. In May, the company struck a partnership with chipmaker Nvidia to create an AI-fueled “content engine.” It also has “exciting future plans” for AI software company Satalia, which it acquired in 2021, according to Read.
WPP joins a number of other holding companies, such as Publicis, IPG, and Omnicom, that have invested in AI this year. WPP also recently inked a partnership with Spotify that will give it early access to the platform’s ad products.
Besides strengthening its tech offerings, WPP has been building its agency portfolio. Earlier this year it acquired two influencer marketing agencies, Goat and Obviously, and bought a 30% stake in Majority, a creative agency focused on diversity. And it snagged new business during the first half of this year, including production work for Mondelēz, which owns blue-chip brands like Cadbury, Chips Ahoy!, and Oreo.
WPP picked up several awards at Cannes this year, including five Grand Prix and 165 Lions. WPP subsidiary Mindshare was the most-awarded media agency.
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