Feb 9 (Reuters) - British advertising group WPP is planning to bring its three main creative advertising agencies under one banner, the Financial Times reported on Monday. (Reporting by Shivani Tanna
WPP to Consolidate Creative Agencies Under New CEO's Leadership
WPP's Strategic Restructuring
LONDON, Feb 9 (Reuters) - Britain's WPP is preparing to bring its three main creative advertising agencies under one banner, the Financial Times reported on Monday, as its new chief executive battles to turn around the business at a time of huge AI disruption.
Overview of WPP Creative
The advertising group will set up a new holding structure called "WPP Creative", the report said, citing three people familiar with the plans. The restructure would be one of the first major moves by Cindy Rose, who became CEO in September.
Market Reaction to Restructuring
A former Microsoft executive, Rose promised to "dramatically" simplify the group, aiming to win back business from clients like Mars and Coca-Cola North America, after it lost contracts last year, sending its shares to 28-year lows.
Client Needs and AI Impact
Shares in WPP opened up 2% on news of the restructure, but were trading up 0.9% by 0825 GMT, in line with Britain's midcap companies index.
SIMPLIFYING OFFERING TO CLIENTS
WPP shares slumped in last week's market selloff, dropping more than 11%, on rising concerns that rapid advances in artificial intelligence could upend companies' business models following the launch of Anthropic's new legal AI tool.
WPP did not immediately respond to a Reuters request for comment on the FT report.
Under the WPP Creative plans, which the FT said would be unveiled later this month, WPP will keep its existing creative agencies, including Ogilvy, VML, and AKQA, but fold them under a single umbrella to simplify its offering to clients, the report added.
WPP Creative will sit alongside its already integrated media and production divisions, the report said, adding that the separate agencies are expected to continue operating independently. WPP plans to keep their brands in the market.
Rose said late last year that WPP had not gone fast enough to adapt to the changing needs of clients, who wanted more simplicity and use of data and AI.
(Reporting by Shivani Tanna in Bengaluru and Sarah Young in London; Editing by Mrigank Dhaniwala, Rashmi Aich and Emelia Sithole-Matarise)
