• WPP CEO Mark Read plans to step down after seven years leading the advertising giant.
• The company faces challenges as the ad industry shifts to AI and tech-driven models.
• WPP's restructuring under Read saw brand retirements, office closures, and debt reduction.

Will the last ad exec leaving Madison Avenue please turn out the lights?

WPP CEO Mark Read said Monday that he plans to step down after seven years leading the advertising giant and more than 30 years at the company. He will continue as CEO until the end of the year to see through the transition to his successor, who hasn't been named.

The announcement comes at a fraught crossroads for WPP and the broader advertising industry. Read's exit follows that of famed ad veteran David Droga, who said last month he plans to leave Accenture Song, the consulting giant's marketing services division, at the end of this year. Several longtime WPP execs have also parted ways with the company in recent months.

Madison Avenue is grappling with upheaval as its profit centers shift from creating TV ads with catchy taglines and big branding ideas to trading media, integrating IT systems, and helping clients make sense of their customer data. The rise of artificial intelligence and its associated productivity gains also rips a hole through the traditional agency business model, where ad companies are generally compensated on the number of full-time equivalent employees devoted to an account. Add to that the threat from Big Tech giants like Meta, who want to cut out the advertising middlemen altogether using the power of their huge audiences and sophisticated ad targeting systems.

Under Read, WPP has attempted to respond to these forces. In recent weeks, WPP rebranded GroupM, the division responsible for managing around $60 billion in clients' media investments, to WPP Media. The company said the streamlined media offering is powered by WPP Open, an AI-powered platform that helps its employees do market research, spin up media plans, and create assets for campaigns using generative AI.

But WPP isn't fighting from a position of strength. The company's annual revenue declined last year, and WPP recently forecast another revenue drop for 2025, which it said reflected a challenging macroeconomic environment.

Once the biggest advertising holding company by most measures, WPP was displaced by Publicis as the largest ad company by revenue last year. Publicis currently trades at a market capitalization of around $27 billion to WPP's $8 billion. The industry is also awaiting the creation of an even bigger ad behemoth later this year once the proposed merger of Omnicom and IPG passes regulatory approval.

"The fundamental challenge is that an enormous amount of what the traditional holding companies do is commodity, and commodity can now be done using technology," said David Jones, the former CEO of the ad agency holding company Havas. Jones now leads the 10-year-old marketing and technology company The Brandtech Group, a WPP competitor.

"AI is going to give the traditional holding companies their Kodak moment," Jones said.

Read laid the groundwork for WPP's next era and its new CEO

While Read is a WPP veteran, the 58-year-old wasn't an ad man in the traditional sense.

He took a graduate job at WPP after getting an economics degree from Cambridge University in the UK. He left and became a cofounder of WebRewards, a digital coupons business he sold to the German publishing giant Bertelsmann in 2001, after the dot-com bubble burst. He rejoined WPP a year later, rising to become CEO of Wunderman, one of its digital agencies.

Read took over the reins of the entire company in 2018, after the acrimonious exit of its longtime CEO Martin Sorrell, who had built the company from a seller of "wire and plastic products" — WPP — into what was the world's largest advertising group.

While a fellow Brit, the similarities between Read and Sorrell largely ended there. Sorrell was famed for building WPP through a series of acquisitions, and still now at his new ad company, S4 Capital, is an archetypal "Davos Man," often seen on stage and TV offering commentary about macroeconomic issues. Read has kept a lower profile and has sought to simplify WPP's many agencies into a more uniform structure.

Sorrell did "empire building," while "Read has been an empire dismantler," the independent media analyst Alex DeGroote said.

Some industry analysts and insiders say this is to Read's credit. According to DeGroote's calculations, Read retired around 300 different agency brands, closed more than 800 offices, and realized around $5.1 billion for the company from disposals. WPP reduced its net debt to around $2.3 billion as of December 31 last year, down from about $3.4 billion in 2023.

But the Read era of restructuring and layoffs has hit morale within the rank and file — a mood that was further soured among some WPP employees when he instituted a four-day-a-week return to office policy this year. WPP has lost key accounts from clients like Pfizer and the Coca-Cola North America media account, though it has also won business from major advertisers including Amazon and Unilever. Toward the latter part of his tenure, some industry insiders said Read would need to take a bigger swing — anything from taking the company private to making a landmark acquisition — in order to return the company to growth.

Attention now turns to who might succeed Read.

Industry insiders told BI that internal candidates for the role would likely include newly appointed WPP Media CEO Brian Lesser; the CEO of WPP's specialist communications agency division, Johnny Hornby; WPP's chief operating officer, Andrew Scott; WPP's chief marketing and growth officer, Laurent Ezekiel; VML CEO Jon Cook; and Ogilvy CEO Devika Bulchandani. These execs either declined to comment or didn't respond to requests for comment from BI.

The search, led by the former British Telecommunications boss Philip Jansen, who became WPP's chairman in January of this year, is also considering external candidates.

"I don't think it will be internal, but I don't think it will be a radical hire either — WPP does not need more restructuring," media analyst Ian Whittaker said. "I would look for executives at one of the other agency groups who are well regarded."

One WPP insider told BI they expected and hoped the appointment would be made relatively quickly.

"At the end of the day, we've just got to get our mojo and momentum back," this person said.

The FDA has launched the generative AI tool, Elsa, agency-wide to help its employees with everything from clinical reviews to investigations. Sure, we're living in a time of widespread disinformation and pushbacks against science, but why not rush things through with AI?

Elsa — yes, weirdly like the snow queen from Frozen — completed a "very successful pilot program with FDA’s scientific reviewers." According to the FDA, the AI tool can help with reading, writing and summarizing everything from adverse events to assessments. Elsa can also do label comparisons and generate code. It's already being used to speed up clinical protocol reviews and scientific evaluations, along with finding "high-priority inspection targets."

Elsa should be a secure platform, the FDA states. It's not clear how exactly the agency trained Elsa, but the FDA claims it's not through "data submitted by regulated industry." The information exists in Amazon Web Services' GovCloud that, again, should keep all information internal.

The FDA calls Elsa the first step in its AI journey. "Today marks the dawn of the AI era at the FDA with the release of Elsa, AI is no longer a distant promise but a dynamic force enhancing and optimizing the performance and potential of every employee," said FDA Chief AI Officer Jeremy Walsh. "As we learn how employees are using the tool, our development team will be able to add capabilities and grow with the needs of employees and the agency."

The US Environmental Protection Agency (EPA) has revealed that it's making some big changes to the first nationwide drinking water standard set by the Biden administration. Last year, the agency had finalized the standard, which aims to regulate the presence of "forever chemicals" called perfluoroalkyl and polyfluoroalkyl substances (PFAS) in drinking water across the country. There are thousands of different types of PFAS, but the rules specifically set limits for five: PFOA, PFOS, PFNA, PFHxS, and HFPO-DA. Now, the agency has revealed that it was only going to keep the Biden-era nationwide limits for PFOA and PFOS.

Exposure to forever chemicals has been linked to a variety of health issues, including cancer, liver damage and asthma. Under the rules set by the US government last year, the maximum levels of PFOA and PFOS in drinking water should be 4 parts per trillion only. PFNA, PFHxS and HFPO-DA (also known as GenX chemicals) were supposed to have a max limit of 10 parts per trillion. However, the agency is rescinding the regulations for those last three chemicals. To be fair, PFOA and PFOS are the two most common types of PFAS. The agency said that its "actions are designed to reduce the burden on drinking water systems and the cost of water bills" while still "continuing to protect public health."

In addition to rescinding the limits for three out of the five forever chemicals, the EPA said it also intends to extend water utilities' compliance deadline from 2029 to 2031 in order to give them more time to develop a plan that would allow them to meet the standard. This extension "will support water systems across the country, including small systems in rural communities, as they work to address these contaminants," said EPA Administrator Zeldin.