Why WPP Shares Fell Today

WPP (LON: WPP) shares fell more than 4% on Tuesday, closing at 235.8 pence, down from Monday’s 245.7p close, as the advertising giant lost virtually all of its business with longtime client IBM in a one-two punch that landed on the same trading day.

Ad Age reported Tuesday morning that IBM has named Stagwell’s Anomaly and Code and Theory as its new lead creative agencies, ending Ogilvy’s roughly 32-year run as IBM’s creative agency of record.

IBM’s marketing chief, Jonathan Adashek, pointed to AI capability and speed as deciding factors — a particularly pointed rebuke given WPP’s own push to position itself as an AI-driven agency.

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Compounding the blow, IBM’s global media planning and buying mandate — previously held by WPP Media — was awarded to Omnicom Media, effective July 1.

Notably, WPP Media reportedly declined to even defend the account in the competitive review, suggesting the loss had been anticipated internally. Combined, the moves sever essentially all of WPP’s major ties to a marquee client of more than three decades.

The news also landed amid a broader tech-sector retreat weighing on advertising and media names, and against an already shaky backdrop for WPP: shares were down over 7% on the month and more than 27% over the past year heading into Tuesday.

The IBM exit adds fresh pressure to CEO Cindy Rose’s turnaround plan, which includes £500 million in cost cuts and a restructuring around creative, media, production and enterprise AI — a strategy now facing a high-profile test case in real time.