WPP Media Faces Major Setback in 2025: AI Strategy Falters, CEO Exit, and Shares Crash by 17%
CE DESK 
WPP Media faces major challenges in 2025 as its AI strategy underperforms, profit forecasts drop, shares plunge 17%, and CEO Mark Read announces his exit. Discover what this means for the future of the global ad giant.
WPP Media, one of the world’s largest media investment firms, is grappling with a challenging year. What began as a promising rebrand of its media division into an AI-driven powerhouse has since unraveled into a tale of missed expectations, plummeting profits, and leadership changes. The company, which manages more than $60 billion in media spend globally, has issued its second profit warning of the year—sending shockwaves through the advertising world.
WPP now expects like-for-like revenue to fall between 3% and 5% for the year, a significant downgrade from previous forecasts. The second quarter alone is expected to show a 5.5% to 6% drop in revenues. This sharp decline was unexpected, even for CEO Mark Read, who admitted to being surprised by the weak performance in June. Operating profit is also expected to dip, projected between £400 million and £425 million, with margins shrinking up to 175 basis points. Unsurprisingly, investor confidence took a hit, and the company’s shares plunged by more than 17%, dropping to levels not seen since the 2009 financial crisis.
At the heart of this downturn is the company’s strategic pivot. In May 2025, WPP renamed its flagship media-buying division GroupM to WPP Media, aiming to become the global leader in AI-powered media planning. The move was designed to streamline operations and bring innovation to the forefront of digital advertising. However, the bold rebranding hasn’t delivered on its promise—at least not yet. Pitch activity has slowed significantly, with new business acquisition falling to just one-third of 2024 levels. The slowdown is attributed to both the internal restructuring and broader economic uncertainty, as advertisers become more cautious with their budgets.
Another major headline is the upcoming departure of CEO Mark Read, who has led the company since 2018. While his exit isn’t officially tied to the current financial challenges, the timing certainly raises eyebrows. His tenure saw WPP embrace digital transformation, including the latest AI shift. However, with these recent setbacks, a new leader will soon need to steer the company forward. Philip Jansen, former CEO of BT, stepped in as Chairman in late 2024 and is now overseeing the search for Read’s successor.
The sharp decline in share price reflects the urgency of the situation. Market analysts are watching closely to see whether WPP’s second-quarter results, due in August, confirm a deeper problem or hint at a rebound. Much will also depend on whether WPP Media can start winning new business again and whether its AI capabilities can deliver measurable results to skeptical clients.
Looking ahead, WPP Media still has potential. Its vast global reach, deep client relationships, and early AI integration give it a strong foundation. But turning strategy into results—and convincing both clients and investors of its value—will require steady leadership, clear communication, and improved performance in the months ahead.
