Wpp Plc · LSE:WPP
Wpp — Investor Presentation (June 2025)
32 slides from Wpp's investor presentation, June 2025
Slide 1: 2025 Global Midyear Forecast
2025 Global Midyear Forecast June 2025
Slide 2: Agenda
Agenda 01 A new taxonomy for media 02 Advertising in 2030 03 New category benchmarks 04 Deglobalization 05 Advertising as a business model 06 AI as hegemon or hype? 07 Top 10 markets 17
Slide 3: Overview
Overview Advertising is expected to be resilient in the face of significant technological and geopolitical change. This June forecast is a downgrade from our December expectations, but does not assume a global recession. Total revenue Advertising Growth $1.08 6.0% trillion in 2025 (excluding the imp
Slide 4: A new taxonomy
A new taxonomy $628.8 bn Content-driven ad revenue in 2025 (58% share) $169.6 bn Commerce-driven ad revenue - surpassing TV for the first time Source: GroupM
Slide 5: Content ad revenue continues shift to creators
Content ad revenue continues shift to creators >50% For the first time, user- generated content will account for a greater share of ad revenue than professional content Generative AI Could rapidly accelerate this trend Source: WPP Media
Slide 6: Advertising in 2030
Advertising in 2030 62.9% of experts surveyed agreed that the majority of news consumption would come from individual creators and AI-generated bots. But only 38.7% think it is likely that more than half of the ‘users’ on social platforms will be AI-generated personae.
Slide 7: A new taxonomy
A new taxonomy $628.8 bn Content-driven ad revenue in 2025 (58% share) $169.6 bn Commerce-driven ad revenue - surpassing TV for the first time Source: GroupM
Slide 8: Search evolution
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Slide 9: Advertising in 2030
Advertising in 2030 66.1% of our experts agreed that most consumer interaction with brands would happen bot-to-bot in 2030
Slide 10: A new taxonomy
A new taxonomy $628.8 bn Content-driven ad revenue in 2025 (58% share) $169.6 bn Commerce-driven ad revenue - surpassing TV for the first time Source: GroupM
Slide 11: Commerce media is everywhere and in everything
Commerce media is everywhere and in everything 18.0% Retail media’s share of total ad revenue in 2030 44.1% China’s share of all retail media in 2025
Slide 12: Advertising in 2030
Advertising in 2030 Respondents are optimistic that the application of AI will not result in diminished consumer purchasing power (66.1% view it as unlikely) 83.9% of experts surveyed felt it was unlikely AR glasses and VR goggles would surpass sales of smartphones and watches by 2030.
Slide 13: Industry-level models obscure the reality of large advertisers and traditional media owners
Industry-level models obscure the reality of large advertisers and traditional media owners
Slide 14: New category benchmarks & the addressable market
New category benchmarks & the addressable market 38% TV as a share of large brand media 80% Digital as a share of all other advertisers Source: WPP Media
Slide 15: Political, Regulatory & Legal Drivers
Political, Regulatory & Legal Drivers Political drivers include government policies, foreign trade policies, regulation, and de-regulation. Legal drivers include legislation and laws that require compliance from advertisers and/or ad sellers.
Slide 16: Political drivers of advertising growth
Political drivers of advertising growth Tactical Strategic Emerging Opportunities 6-12 months 12-24 months 3-5 years Tariffs and non-trade Regional partnerships and Major global elections barriers M&A to compete globally Corporations taking on more Decoupling of int’l trade Divergence of EU/UK of wh
Slide 17: Uncertainty and deglobalization weigh on growth
Uncertainty and deglobalization weigh on growth Financial Russian WWI WWII Cold War Crisis Sanctions China joins WTO $1 - 1.5 bn Estimated annualized cost of tariffs from one CPG company $3,500 Estimated cost of U.S. made iPhone Source: Company filings, Wedbush
Slide 18: Economic Drivers
Economic Drivers Economic drivers include employment, economic growth, monetary policy, inflation, and consumer spending. 17
Slide 19: Economic drivers
Economic drivers Tactical Strategic Emerging Opportunities 6-12 months 12-24 months 3-5 years Inflation / stagflation Effects of the pause on non- Shift in economic growth to AI business investment India, Brazil, MEA, etc. Proliferation of media networks (advertising as a Business deaths shift Impac
Slide 20: Brand adaptations
Brand adaptations 01 Seeking increased flexibility and the ability to pivot quickly 02 Shifting budgets from non-working to working media 03 Prioritizing a fluid rather than rigid approach to data
Slide 21: Advertising as a business model
Advertising as a business model Media Network Launches 8.8% Advertising as a share of Amazon eBay Walmart Kroger Walgreens Boots Alliance DoorDash Klarna JPMorgan Chase Amazon revenue Alibaba Booking Ahold Instacart PDD Grab Uber Sephora PayPal JDD Target Shopee Ulta Beauty United Airlines 87% Marri
Slide 22: Social Drivers
Social Drivers Social drivers include population growth, cultural and religious trends, and consumer behavior.
Slide 23: Social drivers
Social drivers Tactical Strategic Emerging Opportunities 6-12 months 12-24 months 3-5 years Trust / polarization Globalized sports & Digital assistants and sponsorship loneliness School phone bans Cinema as a premium Ongoing shift to “creators” experience vs professional content Gap between expert &
Slide 24: Advertising in 2030
Advertising in 2030 62.9% of experts believe it is unlikely that people will spend more time with immersive virtual worlds than the physical one, even by 2030. A slight majority of experts (51.6%) agree that most people will use social media platforms privately in 2030, with the public space dominat
Slide 25: Technological Drivers
Technological Drivers Technological drivers include innovation and advancements in hardware and AI, as well as new modes of distribution, manufacturing, and logistics.
Slide 26: Technological drivers
Technological drivers Tactical Strategic Emerging Opportunities 6-12 months 12-24 months 3-5 years Agentic AI purchasing Content licensing to AI Robots everywhere Computing interfaces, e.g. Autonomous vehicle glasses advertising Revenue models for AI companies
Slide 27: AI glass half full or half empty?
AI glass half full or half 01 empty? The death of the web 02 AI 2027 03 Bags of heuristics
Slide 28: AI 2027 quote on models deceiving humans
”As the models become smarter, they become increasingly good at deceiving humans to get rewards…Before [Agent-3] begins honesty training, it even sometimes fabricates data entirely. As training goes on, the rate of these incidents decreases. Either Agent-3 has learned to be more honest, or it’s gott
Slide 29: Melanie Mitchell quote on bags of heuristics
“Humans probably use a mix of abstract world models and bags of heuristics for problem- solving as well, but I think it’s likely that humans don’t have the same capacity as today’s LLMs to learn enormous numbers of specific rules. I’d guess that it’s actually our human limitations — constraints on w
Slide 30: Advertising in 2030
Advertising in 2030 Source: WPP Media
Slide 31: 2025 Market Forecasts
2025 Market Forecasts 01 5.6% U.S.- 06 4.9% France - Ad Growth Ad Growth U.K. China 02 6.8% China - 07 11.9% Brazil - Canada Ad Growth Ad Growth Germany U.S. France India Japan 03 6.5% U.K. - 08 5.1% Canada - Ad Growth Ad Growth 04 4.0% Japan - 09 8.4% India - Ad Growth Ad Growth Brazil Australia 05
Slide 32: Questions?
2025 Global Midyear Forecast Scan or click to view the This Year Next Year interactive report Questions?