Shares in the world’s largest ad company plunged today after WPP announced worse-than-expected sales last year. The firm’s stock price fell 9% following the announcement, and rivals including Publicis Groupe SA also saw single-digit declines.
We predicted in January that the communications conglomerate would decline 20% in 2018:
Agencies like WPP are frantically trying to cut costs and streamline their organizations. But as brands reallocate spend for the digital age, it’s only a matter of time before the sputtering advertising-industrial complex gives way to Facebook and Google.