Both WPP and Interpublic Group (IPG) released their first-quarter results this week, and while the numbers were underwhelming, they didn’t come as a surprise. Client spending remains cautious and revenue at both holding groups slipped — WPP’s down 2.7% like-for-like, and IPG’s organic revenue falling 3.6%.
But rather than dwell, both companies were keen to shift the spotlight towards points of positivity behind the scenes. The intended message to those attending the calls were clear: this is a period of rebuilding, not retreating. And at the centre of both was a quiet but deliberate push to make tech and data platforms the backbone of how they operate moving forward.
For WPP, that means highlighting its internal technology stack, WPP Open. The platform — designed to bring creative, media, production and data under one roof — is now being used by 60% of client-facing staff, according to the company’s update. That’s 48,000 people compared with just 33,000 in December last year. The data suggests the platform is moving from proof of concept to core infrastructure.
WPP Open’s growing adoption was one of the few bright spots in a quarter where revenue less pass-through costs fell to £2.48 billion, and total revenue dropped to £3.24 billion, down 0.7% like-for-like and 5% on a reported basis. But CEO Mark Read struck a measured tone, calling the results ‘in line with expectations’ and noting continued pressure from macroeconomic factors, including potential client exposure to tariffs.
‘While WPP is not itself directly affected by tariffs, they will impact a number of our clients as well as the broader economy’, Read said. ‘At this point we have not seen any significant change in client spending and we reiterate our full-year guidance which already reflected a challenging environment. As ever, we remain agile and vigilant and will continue to be disciplined on how we are managing our cost base.’
The holding group was able to point towards new wins — including Generali, Heineken and Levi Strauss & Co — that came through recently reshaped agency brands VML and Burson. WPP also flagged its acquisition of InfoSum, now integrated into GroupM, as another important move in strengthening its AI and data offering.
A similar narrative played out at IPG, which also used its Q1 results this week to frame the quarter as a period of transformation rather than growth. The company posted a net loss of $85.4 million, driven largely by $203.3 million in restructuring charges as it prepares for its integration with Omnicom, expected in the second half of the year.
Organic net revenue declined 3.6% to $2.0 billion, while adjusted EBITA before restructuring landed at $186.5 million, representing a 9.3% margin. Despite the dip, CEO Philippe Krakowsky pointed to solid performances from several core agencies — notably Mediabrands, Deutsch, Golin, and Acxiom — and reaffirmed the company’s full-year outlook.
As with WPP Open, Acxiom was strategically positioned as a source of optimism during the otherwise weak results. Krakowsky described the data and identity platform as notable because its ‘central to helping businesses succeed in any macro environment’, and emphasised how its capabilities are now embedded across campaign delivery, from audience identification to AI-powered personalisation.
‘Our agencies access this data to identify audiences and opportunities’, he said, ‘powering personalised communications through our growing integration of AI into all facets of our business. This, in turn, results in unique and highly relevant customer experiences that drive measurable business outcomes for marketers.’
With IPG guiding for a 1–2% organic revenue decline and a 16.6% adjusted EBITA margin for the year — and WPP also holding its forecasts — both companies appear to be taking the same strategic stance to focus on rebuilding while enduring through the slowdown.
Photo by Taylor Vick on Unsplash.