17565: On Outcome-Based Remuneration Regurgitation Rhetoric.

 

Digiday reported WPP CEO Cindy Rose said, “I suspect it will take a few years” for outcome-based remuneration to take hold in Adland.

Um, it’s not the first time White advertising agencies pressed to have compensation tied to results and revenue enjoyed by brands via marketing initiatives.

Based on historical data, it will take much more than a few years. Outcome-based payment is an outdated proposition, with failed attempts dating back to the 1990s.

White holding companies—including a single White operating company—fueled the commoditization of Adland. Adding an intent to leverage AI for offering faster and cheaper services makes pursuing outcome-based remuneration outrageous.

Hell, it’s a safer bet Rose will be out long before outcome-based remuneration becomes reality—especially if her employment is based on outcomes achieved at WPP.

‘It will take a few years’: WPP CEO Cindy Rose says outcome-based pay is still years away

By Sam Bradley

 

Loud as the chatter about outcome-based remuneration is across the holdco space, the reality of it is still some way off, according to one of its most vocal proponents, WPP CEO Cindy Rose.

 

It’s a notable admission given Rose has made outcome-based pay a core pillar of WPP’s turnaround plan, overhauling how global client leaders — the senior execs running the biggest accounts — get paid, tying it directly to client growth. Getting clients to pay the same way is another matter. So far, only one has: Jaguar Land Rover.

“If you look at the history of this industry, the commercial model has been evolving for the past 40 years, and I think we’re going to have to continue to adapt because the time and materials model is probably not sustainable in the long term because AI ultimately will enable us to do our work faster with fewer people,” Rose told Digiday today (August 6) as the agency giant published its first-half earnings report.

She added, however, that Jaguar was so far “unique” in embracing the approach. “It’s going to take time for this evolution to take place… I suspect it will take a few years,” she said.

WPP’s recovery, too, remains a work in progress. Eleven months into Rose’s tenure and six months after she unveiled her turnaround plan, there are early signs from its latest earnings update that the group’s core media and creative businesses are stabilizing. To keep the momentum going, Rose said WPP would embrace a “mixed economy of business models.”

WPP’s first half

H1 revenues less pass-through costs were £5 billion ($6.7 billion), down 4.7% from the same period last year. Its creative businesses, including VML and Ogilvy, saw a 3.5% decline in revenue less pass-through costs, though its production unit saw revenue increase 1.9%. WPP Media saw revenues fall 5.4% compared with the same period last year, but Rose said higher spending from new and existing clients had contributed to an “improving quarterly trend” within the network.

Rose, who was appointed CEO last September, said the business was on track to recovery according to key indicators: new business, client retention, tech partnerships and cost cutting. Evidence for the former, she said, was in the wins for Heineken and Honda’s accounts, and retentions such as Huawei and Reckitt.

“My priority, my north star, is to get WPP back to positive organic growth,” she told analysts during the company’s earnings call. “The priority in 2026 has been to stabilize the business, make the structural changes needed, and strengthen our execution. The next phase is to build on these foundations, returning the company to growth sometime during 2027.”

The market appears to agree with Rose’s diagnosis. WPP’s share price had risen 25% following the earnings release at the time of writing.

AI plans

The company’s turnaround plan is closely tied to its AI investment and development plans. CFO Joanne Wilson declined to provide details on WPP’s token costs (the firm committed in 2024 to invest £300 million annually), but said its Open platform was a key tool for “optimizing” AI-related costs.

“We are using AI and applying it across our business. So, as you would expect, with that comes token costs… we’re actively optimizing that cost. We’ve also been very thoughtful about how we use agents across the business,” she said.

“Open is widely deployed across our business now, and our clients. We use [Open Intelligence, WPP’s AI media targeting solution] in all of our pitches. It’s absolutely front and center of our proposition,” added Wilson. 

Wilson suggested that outcome-based commercial models might provide a means for WPP to operate without absorbing all AI-related costs. “In the past, our business and values really come almost entirely from people, now it’s people and tech costs. We’re evolving our commercial model so that we’re reflecting those inputs between people and tech,” she said.

What role WPP Open Pro, the self-service SME creative tool launched last autumn, will play in the holding company’s commercial model is less clear. Rose said 24 clients were now using the tool. “We’ve got a very healthy pipeline of active client opportunities, and we’re encouraged by the progress there too,” she said.

Token costs, outcome-based models and organic growth expectations weren’t the only subplots updated this morning:

WPP’s open to offers

By the end of this year, WPP will have clawed back £200 million ($269 million) through sales of “non-core” business units, to use Rose’s terminology, and what CFO Wilson referred to as the “long tail” of agencies, during the company’s investor call. It’s quite a turnaround for a company once defined by its aggressive approach to agency acquisition.

“We identified assets in the group which are great assets, but we felt that they were of more value to the outside of the group than inside. We have initiated processes on those assets earlier in the year, and those processes are ongoing,” said Wilson, who didn’t name the agencies in question. “I would expect some more in 2027.”

Staff cuts will continue

WPP isn’t the only major agency group shedding staff at the moment, but it’s shrunk its headcount by around 8.1% in the past year. The company now employs 97,400 staffers, versus 105,900 during the first half of 2025. Though most of those job cuts fell in the second half of 2025 Rose indicated this was an ongoing project, telling reporters that “some jobs will be impacted” as the company pursues £500 million ($673 million) in cost cuts over three years. “This isn’t just about cost savings per se. These actions will make us more agile and simpler to navigate, and that’s an important part of our new simplified operating model,” she said.

Those cuts mean that WPP, once the industry’s largest employer, is now smaller by headcount than either Omnicom or Publicis Groupe, which both have over 100,000 employees. Rose argued that embracing alternative commercial models like outcome-based pricing would enable it to compete.

“Moving away from a time-and-materials model,” she said, “frees me up from staffing plans so that I can serve clients with a hybrid workforce of humans and agents, and that reduces my cost to serve, and ultimately becomes a source of expansion.”

17564: WPP Metaphorically On Track.

Adweek spotlighted the WPP H1 2026 report, indicating the single White operating company experienced a 5.6% decline in revenue, yet saw its stock rise over 26% after beating analysts’ estimates.

During an earnings call, WPP CEO Cindy Rose declared, “We’re on track with where we said we would be,” referring to the fuzzy Eviscerate28. Meanwhile, regarding outcome-based remuneration—a key notion in the turnaround scheme—Digiday reported Rose said, “I suspect it will take a few years.”

Not officially stated about WPP: The runaway train is being built in breakneck flight—ditto the rickety track it’s careening along. And upon reaching the dismal destination, there will be far fewer passengers on board versus when the dizzying trip started.

WPP Is ‘On Track’ With Turnaround Plan, as Revenue Drops 5.6% in First Half of 2026

Six months into its 3-year turnaround plan, WPP’s revenue beat analysts’ estimates

By Brittaney Kiefer

WPP’s stock rose more than 26% in the early hours of trading, after the company’s first-half earnings beat analysts’ estimates. 

The numbers

• –5.6%: Year-over-year decline in revenue less pass-through costs for the first half of 2026 to $6.39 billion (£4.75 billion), down 4.7% on a like-for-like basis 

• –2.3%: YOY decline in revenue less pass-through costs for the second quarter to $3.34 billion (£2.48 billion), down 2.8% on a like-for-like basis 

• –8.4%: YOY decline in average headcount, from 106,000 in the first half of 2025 to 97,000 in the first half of this year

• –3.5%: Decline in WPP Creative’s net sales for Q2, versus a 6.3% decline in Q1

• –2.8%: Decline in WPP Media’s Q2 net sales, versus an 8.3% decline in Q1

Watercooler talk 

WPP is six months into its three-year turnaround plan, Elevate28, which is designed to stabilize the business and return it to growth, while delivering annual cost savings of $676 million (£500 million) by 2028. Chief executive Cindy Rose is nearly one year into her tenure.

“We’re on track with where we said we would be,” Rose said on an earnings call with journalists on Thursday (Aug. 6). 

Rose said WPP made progress on its four strategic objectives, which are to deliver growth for clients, become a simpler and more integrated company, unlock the advantages of its agentic marketing platform WPP Open, and to “create firm financial foundations for the future.”

Earlier this year, WPP restructured into four business units—WPP Media, WPP Creative, WPP Production, and WPP Enterprise Solutions—across four key regions—North America, Latin America, EMEA, and APAC. For the first time, its earnings report split its results into those units.

On the new business front, Rose cited “landmark wins” including Estée Lauder, Jaguar Land Rover, Avon, Airbnb, Wendy’s, SC Johnson, and Heineken. WPP topped J.P. Morgan’s net new business rankings as number one for the first half of 2026 and for the nine months to Q2 2026.

WPP also “completed more than 15 non-core asset disposals that will generate over £200 million [$269 million] of sales proceeds in 2026,” according to Rose. The company said it is on track to make $134.5 million (£100 million) in savings this year.

While WPP is reportedly planning to cut hundreds of jobs globally by the end of this year, Rose declined to share specific numbers, other than confirming that “some jobs will be impacted.”

“This isn’t just about cost savings per se. These actions will make us more agile and simpler to navigate, and that’s an important part of our new simplified operating model,” Rose said.

Rose touted the company’s technological advancements through WPP Open, which she said allows clients to “connect their data with signals from across WPP and our 350 data partners, giving them access to 5 billion consumers in over 100 markets, drawing on trillions of real-time signals.”

Key quote

“What excites me the most is to see how AI is fundamentally changing how we deliver growth for our clients,” Rose said. “In an environment where AI is rapidly transforming our industry and trust is in scarce supply, I believe that our commitment to client data ownership and control will become increasingly compelling.” 

17563: On S4 Capital H1 P&L OMG WTF BS.

 

MediaPost spotlighted the S4 Capital H1 2026 report, indicating the White holding company continued to experience net revenue declines. Dramatic cost cutting, however, helped to ignite a profit boost.

Gee, Sir Martin Sorrell might earn the distinction of being unable to orchestrate a financial turnaround for the biggest White holding company (WPP) and his current peanut factory.

That’s quite a range of abject failure.

S4 Shares Soar 26% On First-Half Profit Boost

By Steve McClellan

Martin Sorrell-led S4 Capital continued to shrink in the first half of the year with declines in reported and organic net revenue while sharp cost cutting led to a profit boost. The firm also declared a dividend and reduced debt during the period. Shareholders applauded, giving S4 shares a 26% bump up in Wednesday trading after the release of the firm’s first-half results.  

Reported net revenue for the first half was 308 million GBP (approximately $415 million), down 6.2% with a 4.7% organic net revenue shortfall.  

S4 sited continuing macroeconomic uncertainty exacerbated by the Middle East conflict as part of the reason for the revenue falloff. Also, some clients spent less with the firm while boosting capital expenditures in artificial intelligence infrastructure. “Clients continue to be cautious leading to longer sales cycles,” S4 stated. 

But pre-tax profits were up 82.7% to a record 38 million GPB ($51 million). Cost reductions included back-office efficiencies and staff cuts. Total staff at the company was down 10.5% as of June 2026 versus a year ago to 6,150.  

The firm downgraded its organic revenue outlook for the full year, forecasting a decline in the mid-single digits versus the previous “slight dip” the company guided to at the end of the first quarter. But pre-tax profits should reach the analyst consensus of 85 million GBP ($115 million) with a profit margin increase of 1.4%.  

“We anticipate that clients will remain cautious in the near term reflecting heightened macroeconomic uncertainty, including the continuing conflict in the Middle East,” stated Sorrell. “While the macroeconomic environment remains uncertain, we see growing opportunities as clients become more selective about growth geographically and increasingly focused on implementing technologies such as AI, Blockchain and Quantum to drive efficiency.”  

The Americas, the firm’s largest region by revenue, was down slightly (0.8%), while Europe and Asia Pacific were both down double-digits.   

The company’s marketing services unit posted net revenues of 281.9 GBP ($380 million), down 4.4% organically while technology services totaled 26.1 million GBP ($35 million), down 7.4%.

17562: On The Highest Standards Of Hospitality In Adland.

 

The previous post featuring a perspective opining Adland could enhance its appeal to clients by embracing restaurant-style hospitality inspired additional commentary.

To execute the notion, White advertising agencies should emulate iconic, renowned hospitality leaders:

 

 

Aunt Jemima

      

Rastus

    

Uncle Ben

Annie the Chicken Queen

17561: Shifting Geer At VML & WPP.

   

Advertising Age reported VML North America Chief Creative Officer of Innovation Walter Geer III is shifting gear, leaving the White advertising agency and single White operating company after six years of service.

Geer claimed his resignation is not a result of the redundancies, restructurings, and RIFs at WPP.

Yet given VML boasts dynamic DEIBA+ dedication and WPP hypes alleged technological advantages, Geer’s exit is bad optics.

Walter Geer III exits VML after six years

By Brian Bonilla

Walter T. Geer III is leaving VML after six years at the agency, departing his role as chief creative officer of innovation for North America as he considers a next chapter spanning creativity, technology, culture and business.

Geer joined WPP’s VML in 2020 as executive creative director of experience design and later held senior leadership positions across health, consumer marketing, experience design and innovation. Most recently, he led a team of nearly 20 people spanning New York, Atlanta, Los Angeles and San Francisco, he said.

Geer said his decision to leave was not connected to WPP’s ongoing restructuring or recent layoffs and had been under consideration for some time. The move is effective immediately.

VML wasn’t immediately available for comment.

During his tenure, Geer worked with brands including Coca-Cola, Microsoft, Advil, Covered California, Progressive and Pfizer. Some of his most notable work at VML includes Advil’s “Believe My Pain,” which addressed racial disparities in how pain is recognized and treated and won a Gold Effie in 2025, as well as Covered California’s “For the Love of Californians” brand platform.

“I had an incredible six years at VML,” Geer said. “At the same time, I think I reached a point where I wanted to give myself the space to really kind of think bigger about what my next chapter could be.”

He said that he is not committed to a particular kind of company or role.

“I made the decision to leave because I wanted to be really thoughtful about what happens next … that could mean transforming an existing organization, creating a new model, absolutely joining an independent company or agency, working directly with a brand or building something entrepreneurial.”

Geer has been outspoken on industry issues either through social media or films such as Black Madison Ave, an open discussion among the few black creative leaders at the holding company level that was released in 2022. He is also a co-founder of Blackweek. VML will remain a strategic partner and primary sponsor of the conference moving forward, Geer confirmed.

Geer said the industry’s wave of holding company consolidation is understandable, describing it as “a necessary evil” as agencies look to combine resources and capabilities.

Discussing the broader agency market, Geer praised the scale, talent and client relationships that large networks offer; he argued the biggest opportunity lies in marrying those advantages with the speed and entrepreneurial mindset of independents.

“That combination could be incredibly powerful if organizations are truly willing and able to make that type of change,” he said.

Geer said that he plans to continue growing Blackweek while advising organizations and exploring opportunities across creativity, technology, entrepreneurship and business transformation.

“There is so much more to build, so much more to challenge and so much more impact to make,” he said. “I’m proud of what we accomplished at VML, grateful for the people who were part of that journey and genuinely excited about what comes next.”

17560: On Novo Nordisk US Media—From Rumor To Reality.

 

MediaPost confirmed rumors the trade publication spread yesterday, reporting Novo Nordisk awarded its US media account to Omnicom.

The news happened so quickly, MediaPost didn’t even bother changing the image depicted above of Novo Nordisk flags.

Expect single White operating company WPP—which had handled the media duties since 2020—to rose, er, raise a White flag.

Novo Nordisk Awards U.S. Media Account to Omnicom

By Steve McClellan

Pharmaceutical company Novo Nordisk has awarded its U.S. media assignment to Omnicom following a review, the company has confirmed.  

The firm spends upwards of $600 million annually on media, according to agency research firm COMvergence. 

The firm previously worked with WPP on the account. WPP’s Wavemaker was awarded U.S. duties in 2020 after a review.  

There were rumors circulating earlier this week that NN had completed the review and that Omnicom came out on top. However, at the time a spokesman for the pharma company said that no award had been announced to the contenders. That was late Tuesday afternoon. 

But now the appointment is official. Here’s the company’s statement:  

“Novo Nordisk has selected Omnicom as our agency-of-record to manage media buying in the U.S. beginning in Q4 2026.  

“We look forward to working with the Omnicom team as we continue to scale consumer-focused strategies and connect with patients through emerging channels and technologies, helping bring even greater awareness of our medicines to people living with chronic conditions such as obesity and diabetes.”

Last month Novo Nordisk filed a lawsuit against rival pharma company Eli Lilly for allegedly false GLP-1 advertising. The two companies are fierce competitors in the GLP-1 weight loss drug category. NN founded the category with the launch of Wegovy and Lilly followed with Zepbound.

17559: Weighing In On Novo Nordisk Media Review.

 

Mediapsssst reported Big Pharma company Novo Nordisk is launching a review of its $600+ million media account. The US portion is currently being handled by WPP.

According to Mediapsssst, rumors indicate Omnicom has already won the business.

Novo Nordisk founded the lucrative GLP-1 category—so, WPP is gonna feel very sick if it loses another ton of revenue.

Novo Nordisk Reviewing Media Account

By Richard Whitman

Pharmaceutical company Novo Nordisk is conducting a review of its media account, according to multiple sources.  

The firm spends upwards of $600 million annually on media, according to agency research firm COMvergence.  

The company’s last big media review was in 2020 when WPP’s Wavemaker was awarded the U.S. portion of the account where the company spends most of its ad budget.   

There were rumors circulating this week that NN had completed the review and that Omnicom came out on top. However, a spokesman for the pharma company said that no award had been announced to the contenders as of late Tuesday.   

“We received your note and wanted to confirm that Novo Nordisk has not communicated any decision related to an AOR,” the spokesman replied to an email query. 

The company has been in the news recently—for a lawsuit it filed earlier this month against rival pharma company Eli Lilly for allegedly false GLP-1 advertising. The two companies are fierce competitors in the GLP-1 weight loss drug category. NN founded the category with the launch of Wegovy and Lilly followed with Zepbound.

17558: Bye-Bye, AI…?

 

More About Advertising published an Op-Ed titled, “Why don’t we just forget about AI?”

Um, because most White holding companies and White advertising agencies would have nothing to hype if everyone forgot about AI, creating a chorus of crickets.

The acronym should be revised to pose this question: “Why don’t we just forget about Advertising Industry?”

Why don’t we just forget about AI?

By Stephen Foster

Later this week Cindy Rose, a former Microsoft executive, will doubtless tie herself in knots trying to explain how “agentic” deals with the likes of Google and Meta (would you join them for dinner without the benefit of a Roman-style taster?) will help realise WPP’s ‘Elevate28’ transformation.

WPP has certainly gone all-out for Artificial Intelligence, firstly under former boss Mark Read and now under Rose although it’s far from clear how it can help an agency group apart from cheaper production. Brandtech’s David Jones hit the nail squarely on the head the other week when he told the FT: “We like to believe that every person who creates is brilliant, but if you watch the basketball [on television] this week, most of the ads are terrible…95 per cent of people don’t produce much that’s creative or original. So why not do that with fast, efficient machines and let the geniuses handle the other 5 per cent?”

So why don’t agencies concentrate on the clients who do care about impactful communications (Adidas being a case in point as it bunged money into the World Cup only to frighten Wall Street’s algo-driven horses) and leave the AI wizards to squander billions on yet more ways to get bots to talk to bots? Even the IAB acknowledges that such ads gain only the most fleeting attention.

Agencies through their history have gone careering away after the latest fashion (AI now obviously but also influencers or creators as they like to be known) with no real evidence that it delivers better results than ads created by people and placed by people in media that people actually consume?

AI has become a vast circular industry where the chip makers fund the companies who buy their products. Sooner or later the musical chairs will stop and there’ll be a financial crash that makes 2008 look like a practice run. That’s if these fiendish AI inventions don’t keep escaping and bring the whole world crashing down anyway.

Agencies and sensible advertisers should steer clear.