Revenue continued to trend upward at WPP in Q4, despite economic uncertainty, with demand for commerce, creativity and connected TV helping the ad giant continue on its growth path.
Like-for-like revenue less pass-through costs (WPP’s version of organic revenue) was up 6.9% for the full fiscal year and 6.4% in Q4.
In Q4, GroupM’s organic revenues grew by 8.8%, citing strength in commerce-related media and connected TV. WPP’s creative agencies had 4.7% growth, with particularly strong performance at Ogilvy and strong demand for production at Hogarth.
Revenue in the company’s PR business grew by 6.5% in Q4, driven by reputation, purpose-related and ESG-related assignments. The company’s specialist agencies delivered 4.4% organic growth, with strength across businesses.
In Canada, WPP’s year-over-year revenue grew by 2.3% in Q4 and 5.8% for the full year. On a three-year basis, full-year revenue is up 16.8%.
Mark Read, CEO of WPP, said client investment in communications, customer experience, commerce and data is helping the company remain strong despite macroeconomic challenges.
“We enter 2023 in a strong financial position with good momentum from new business and the many opportunities ahead of us,” he said in a statement. “While there will no doubt be challenges, the continued need for major companies to build brands, sell products, reinvent and transform their business, understand their data, invest in technology and exploit the potential of AI remains, as does their need for modern partners who can help them navigate this new world.”
WPP also provided an update on its transformation plan, which it says has resulted in £375 million in savings since 2021 and is on track to reach £600 million by 2025. These efforts have included things like simplifying its structure by merging agencies and cutting back on real estate costs by opening campus hubs for its agencies within particular markets.
The company offered guidance of 3% to 5% grow in organic revenue for the full 2023 fiscal year.