WPP’s new boss faces an ad world in turmoil

But the former Microsoft executive faces a huge task turning around what was once one of the world’s most important companies. Now it is not even top dog in its own industry, which is going through a rapid business model transition driven by more cost-conscious clients and the rise of artificial intelligence.

Rose brings expertise in technology, if not so much in advertising, though she should have a good understanding of the challenges facing the company, having been a non-executive member of its board since 2019.

Insiders say Rose’s first task when she starts in September will be to rebuild staff morale after the loss of long-term clients such as Coca-Cola in North America and Mars. The firm has been persistently cutting jobs, and last month its Ogilvy unit said it was laying off 5% of its staff, around 700 workers.

Rose will then have to decide whether to complete, perhaps with modifications, the business transformation strategy put in place by departing chief executive Mark Read. This includes simplifying and integrating the firm’s once sprawling structure – Read initially found himself with 150 direct reports – and investing in building a state-of-the-art AI platform, helped by its acquisition in April of data collaboration platform InfoSum.

Read’s strategy, which probably needs at least another three years of work, mirrors one of the firm’s main rivals, French ad giant Publicis, which used its 2019 purchase of marketing platform Epsilon to transform its business – and, after some initial wobbles, is now seen as a success.

Read’s task was made harder by a constant stream of criticism from his former boss and mentor, ad industry legend Martin Sorrell, as he tried to build his own rival business. Rose may not be spared similar treatment: Sorrell has already said that WPP is “too far gone” to be turned around.

Accenture has been mentioned as a potential buyer, though it faces similar deep AI-driven business model challenges as WPP.

Photography by Isabel Infantes/Europa Press via Getty