Cindy Rose announced as WPP CEO following revenue forecast downgrade
Cindy Rose has been appointed CEO of WPP, effective 1 September.
Rose spent the past nine years at Microsoft, most recently as chief operating officer, global enterprise. She has held previous executive roles at Vodafone, Virgin Media and Disney.
She joins amid a tumultuous time for the UK holding group. On Wednesday, WPP released a surprise trading update, announcing that it had downgraded its revenue forecast for 2025.
The group now expects H1 like-for-like revenue less pass-through costs to decline by between 4.2% and 4.5%, with a drop of 5.5-6.0% anticipated in Q2.
Full-year guidance was downgraded to between -3% and -5%, with current CEO Mark Read admitting performance in June was “worse than anticipated” and the expectation that “this pattern of trading in the first half” is likely to “continue into the second half”.
“We have faced a challenging trading environment with macro pressures intensifying and lower net new business,” said Read.
Shares of WPP dropped over 15% in trading following the announcement, but have been buoyed in initial reaction to Rose’s appointment.
However, WPP’s valuation presently sits at its lowest since the post-2008 financial recession.
Analysis: A tech leader for a tech business
Rose has been a non-executive director on WPP’s board since 2019. She was awarded an OBE in 2019 in recognition of her services to UK technology.
A dual US and British citizen, Rose will be based in both London and New York.
“WPP is a company I know and love — not only from my six years on the board but as a client and partner for many years before that — and I couldn’t be happier or more excited to be appointed as CEO,” Rose commented. “I began my career in the creative industries and this feels like coming home.”
Read said he was “delighted” to see Rose named his successor, noting that from her time on the board she has “real insight into our business and knows many of our clients, people and partners around the world”.
He continued: “She brings deep experience of technology and AI and its transformational impact on business, and has successfully run large global organisations with talent at their core. After seven years as CEO, I know that I am leaving WPP in excellent hands.”
Rose’s tech experience would have been a contributing factor to her appointment. The holding group has sought to reposition itself as a leader in AI integration in marketing.
In April, WPP acquired InfoSum, signifying a major investment in its AI-driven data offer. Last month, the group unveiled a “large marketing model“, dubbed Open Intelligence, that marketers can interact with and supplement with first-party data to receive advice on audience segmentation, creative development and media buying.
Partners involved in the technological development of Open Intelligence have included Microsoft Advertising, as well as Google and Comcast’s FreeWheel.
However, multiple industry leaders on both the buy side and sell side have previously indicated to The Media Leader that they have yet to understand what the model does or how it will be useful to WPP’s business model.
Demonstrating Open Intelligence at the inaugural SXSW London last month, Read suggested that AI is likely to lead to job loss in the immediate term as it drives greater efficiency for clients.
So far, WPP’s AI-driven pitch has yet to translate to major client wins. In recent quarters, WPP’s earnings have slid, with a number of top global clients including Mars, Coca-Cola (North America) and Sky leaving for rivals, particularly Publicis Groupe.
The weak business growth prompted a tech-driven “journey of transformation” that has involved consolidating its media and creative agency brands. In May, WPP rebranded GroupM, its media investment arm, to WPP Media and reportedly laid off a large number of staff in the US and the UK.
As Matthew Bloxham, a senior analyst at Bloomberg Intelligence, previously told The Media Leader: “The pressure to perform has never been higher given the multi-year total return underperformance versus rivals like Publicis and Omnicom. It doesn’t seem like [WPP Media] is firing on all cylinders in the key US market, so a lot of focus is on getting that right.”
“There are so many opportunities ahead for WPP,” said Rose in her announcement. “We have and continue to build market-leading AI capabilities, alongside an unrivalled reputation for creative excellence and a preeminent client list. WPP has the most brilliant, talented, creative people and I can’t wait to write the company’s next chapter together.
“I am grateful to Mark for his many contributions to the business over the years and I look forward to working together to ensure a smooth handover.”
