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WPP taps Microsoft exec Cindy Rose to rebuild ad group

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Britain’s advertising giant WPP named Cindy Rose, a senior Microsoft executive and current board member, as its new CEO on Thursday. Rose will take over from Mark Read on September 1, four months earlier than initially planned, as WPP faces the challenge of recovering from a major profit warning that sent its shares to a 16-year low.

Rose, who has served on WPP’s board since 2019, brings nearly a decade of senior leadership experience from Microsoft, where she most recently served as Chief Operating Officer, Global Enterprise. She also led Microsoft’s UK business and has past experience at Vodafone and Virgin Media.

WPP Chairman Philip Jansen praised Rose’s expertise in digital transformation and artificial intelligence, highlighting her role in helping large enterprises adopt new business models and revenue streams. He noted that her skills will be crucial as WPP navigates industry disruptions and macroeconomic challenges.

WPP is currently struggling with client spending slowdowns, loss of major accounts, and reduced new business, all of which contributed to the recent downgrade in profit outlook. The group, which lost its status as the world’s largest advertising firm to France’s Publicis last year, is also adapting to the rise of AI tools that empower clients to create and manage their own marketing campaigns.

Rose stated, “We have and continue to build market-leading AI capabilities, alongside an unrivalled reputation for creative excellence and a preeminent client list.”

Publicis Acquires Lotame, Doubles Consumer Reach to 4 Billion

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Publicis, the French advertising powerhouse, has announced an agreement to acquire data and ID technology group Lotame, with plans to integrate it into its targeted marketing division, Epsilon. This acquisition is set to significantly enhance Publicis’ technological capabilities in the ever-evolving digital advertising sector, effectively doubling its individual consumer profiles to 4 billion from 2.3 billion.

While the financial terms of the deal were not disclosed, Publicis CEO Arthur Sadoun emphasized the strategic importance of data and technology, noting that the company has invested $1.5 billion in these areas over the past six months. In addition, Publicis plans to allocate between 800 million and 900 million euros ($864.6-$972.6 million) this year for future acquisitions in the technology and proprietary data sectors.

“AI is nothing without data,” Sadoun highlighted, showcasing the power of their 25,000 engineers and CoreAI system. This technology allows Publicis to track individual digital footprints, predicting and influencing consumer behavior across all screens and platforms globally. The system can even identify financial strain in consumers, instantly adjusting advertising to promote budget-friendly alternatives.

The acquisition of Lotame will enable Publicis to engage with 91% of all adult internet users, further solidifying its position as a leader in the digital advertising space.

The acquisition comes after a decade-long, 12 billion euro transformation that has seen Publicis leverage AI and big data to become the world’s largest advertising firm. With competitors like Omnicom and Interpublic set to merge, creating a $25 billion revenue entity, Publicis is keen to stay ahead in the competitive advertising landscape.

As personalisation becomes a growing priority for clients, Publicis is poised to continue its market growth, with an organic growth forecast of 4%-5% for 2024. In contrast, British rival WPP is expecting flat revenue and profit growth, with its stock hitting a four-year low after disappointing results.