WPP India revenue slips 2.9 per cent as AI drives transformation

MUMBAI: Not every ad break guarantees a blockbuster, and WPP’s first half proved that even the world’s biggest agency network can miss a few commercial cues. But while revenues took a hit, the company is betting its next big campaign will be written as much by algorithms as advertising executives.

WPP’s India operations reported a 2.9 per cent decline in like-for-like revenue during the first half of 2026, underperforming the wider advertising market as client losses, softer spending from key sectors and changes in the sporting calendar weighed on performance.

The slowdown mirrored a broader weakness across the Asia-Pacific region, where revenue less pass-through costs fell 3.8 per cent during the six-month period. WPP attributed much of India’s decline to the timing of major sporting events, which disrupted advertising expenditure and media buying patterns. Even so, momentum improved in the second quarter, with the Asia-Pacific business returning to marginal growth.

The biggest drag came from consumer goods and technology clients. Consumer packaged goods companies, which contribute 27 per cent of WPP’s global revenue, reduced spending, resulting in a 9.1 per cent revenue decline for the category. Technology and digital services clients cut expenditure by 9.2 per cent, while retail revenues slipped 2.7 per cent.

The slowdown is significant for India, where FMCG and technology brands have traditionally been among the largest contributors to advertising growth. In contrast, healthcare and pharmaceutical clients remained resilient, while automotive advertising showed signs of recovery during the second quarter.

Even as revenues softened, WPP accelerated its push to reposition itself as an AI-led marketing company. During the period, it expanded partnerships with Google, Meta and Amazon Web Services, embedding predictive and generative AI capabilities into WPP Open, its agentic marketing platform.

The company said Open Intelligence, its AI-powered data layer, is already improving media performance and helping brands anticipate changes in consumer behaviour. It also launched HEX, a specialist AI studio focused on generative AI, gaming, robotics and immersive experiences, while expanding WPP Enterprise Solutions, which combines commerce, customer experience, CRM, loyalty and first-party data capabilities.

The strategic shift comes as WPP reshapes its business beyond the traditional agency holding company model. Under Chief Executive Cindy Rose, the group has reorganised into four operating businesses covering media, creative, production and enterprise solutions, all powered by WPP Open.

For Indian marketers increasingly seeking integrated mandates across media, commerce, influencer marketing and technology, the restructuring reflects a broader industry shift towards unified marketing services rather than siloed agency relationships.

The company also secured new business from The Estée Lauder Companies, Henkel and Wendy’s during the first half while retaining major global clients including L’Oréal, Huawei and Skechers. It added that its brand and design businesses continued to outperform, reflecting rising demand for brand identity, customer experience and digital transformation.

Alongside the overhaul, WPP remains committed to its Elevate28 transformation programme, targeting £500 million in annualised cost savings by 2028. It expects to deliver around £100 million in savings this year and pursue asset disposals exceeding £200 million, with the proceeds set to be reinvested into technology, growth initiatives and talent.