WPP: More Focus on AI and Creativity Should Accelerate Organic Growth and Drive Operating Leverage

WPP’s message at its analyst day was similar to what peer Publicis mentioned last week: Investments in artificial intelligence will enhance the media and creative sides of the business while increasing efficiency. We were pleased with the strategy outlined and view it as a necessary one, given the market perception that WPP has been hesitant and a bit late on that front. While we applaud the firm’s investments in data, technology, and AI on the media side over the last three years, we think the creative side has remained in a silo. However, it appears that the firm is addressing that, as its media and creative businesses will now both work on top of one data, technology, and AI layer—WPP Open—increasing productivity and efficiency.