WPP has reported a ‘positive start to the year’ as UK like-for-like sales grew by 7.4%, thanks to strong spending from consumer goods firms looking to boost sales in an fiercely competitive retail marketplace.
Global sales at the world’s biggest advertising group grew by 4.9% to £2.8 billion for Q1 2023, although “lower spend from some technology clients” meant that US revenue took a hit.
Despite this, WPP remains on track to deliver its previous full year guidance, with new contracts with major firms including Adobe, Ford, Maruti Suzuki, Mondelēz and Swissport accounting for £1.2 billion of new business.
CEO Mark Read said the agency had seen a “positive start to the year”, adding that it was performing in line with expectations and reflected “continued spending by clients in communications, customer experience, commerce, data and technology to support their businesses and brands”.
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The agency has also invested in accelerating its data and technology capabilities, describing AI as being “fundamental to WPP’s business” going forward.
The company is already using AI to automate workflows, accelerate the creative process and produce innovative creative work for clients, such as its award-winning work for Cadbury’s in India.
Read said the firm’s focus on AI over the last five years is already “paying off”, with many examples of our work with clients using the main AI platforms in-market today”.
WPP is also continuing to strengthen the company in other ways, following recent acquisitions of Obviously and Goat as it invests further in influencer marketing expertise. It also bought in a minority partner to FGS Global.
WPP topped all three 2023 WARC rankings after Ogilvy was named number one company in the Creative 100 and Effective 100, while EssenceMediacom took first place in the Media 100.
