The London listed ad giant WPP has said their shares have fallen as revenues in the final three months of the year took a hit amid weaker client spending.
WPP’s share prices fell to a four-year low as they predict sales could fall lower this year, and the ad giant said the UK market was hit with “further weakness in project-based work across creative and specialist agencies exacerbated by an uncertain macro outlook.”
Operating profit for 2024 came in at £1.7 billion which is below the £1.8 billion the previous year.
WPP said they have been investing in AI to power their marketing platform, this helped to gain more work from IBM and L’Oreal.
WPP said that AI will be the “single most transformational development in our industry since the internet.”
This will help to free up “our creative people to do better work,” WPP said.
Russ Mould, AJ Bell’s investment director, said, “Pinning its hopes on artificial intelligence investment to come to the rescue is not an argument which is carrying much weight with the market.
“Advertising agencies are seen as good bellwethers for the economy because companies will increase spending on ads when they are feeling positive and scale back during tougher times.
“Despite its recent struggles, WPP still has significant scale, breadth and geographic reach.
“For this reason, WPP’s update may be a canary in the coalmine for a downturn in wider economic conditions.”
