WPP, Like Ad-Company Rivals, Says It Expects 2023 Growth

WPP said like-for-like revenue less pass-through costs increased 6.9% in 2022 and 6.4% in the fourth quarter. Total revenue in 2022 was £14.4 billion, equivalent to about $17.3 billion, while revenue less pass-through costs was £11.8 billion.

Marketers, ad sellers and agencies have been trying to anticipate how their businesses will be affected by higher costs and economic uncertainty. 

Chief Executive

Mark Read

said that consumers have continued to spend, and clients have continued to invest in their brands. 

“If there’s a catastrophe this year, then things change. But I said back when we did our [third-quarter] results, I don’t think this is going to be a catastrophe,” Mr. Read said on an investor call Thursday. “And I still have that view: There’ll be a slightly softer landing.”

He added that he believes clients at the end of last year were more confident in private than they were in public about the outlook for 2023. 

The advertising market has become increasingly complex and fragmented in recent years, prompting WPP and its competitors to expand their businesses beyond traditional marketing to help clients with services such as e-commerce and managing their data. 

“What we do is probably more valuable than it was five years ago, or certainly no less valuable,” Mr. Read said in an interview.

Earlier this month, New York-based advertising holding company Interpublic Group of Cos. said it expects organic-net-revenue growth of 2% to 4% in 2023, despite weakness in the tech and transportation sector expected for at least the first half of 2023.

Omnicom Group Inc.

and

Publicis Groupe SA

both said they expect organic revenue growth this year of 3% to 5%.

Write to Megan Graham at [email protected]