WPP rises despite losing LVMH to Publicis

The six funds tracked by Marketing Report showed a mixed performance between 8 and 15 September. WPP was the biggest gainer, rising 3.1%, during a week in which LVMH awarded its Asia-Pacific media business to Publicis. S4 Capital fell 9.1%. Publicis closed virtually flat.

WPP

WPP gained 3.1% to close at 384.10 pence. On 15 September, Berenberg raised its price target from 405 to 470 pence and maintained its buy recommendation. The average price target among the 15 analysts tracked by MarketScreener is 371.50 pence, below the closing price. The average recommendation is hold.

According to Ad Age, WPP is retaining Coca-Cola's global media, data and technology account, which it won from Publicis at the end of 2021. WPP is not participating in the separate pitch for Coca-Cola's North American media business.

This was offset by the loss of LVMH in Asia-Pacific. From January 2027, LVMH will place its media business in the region with Publicis without a pitch. WPP has served LVMH since 2017 across 13 markets in the region through its L'Atelier unit. Japan will remain with Dentsu.

WPP Production is facing criticism from the British production trade association APA. Leaked internal documents reportedly show how WPP Production intends to avoid the usual process of obtaining three quotes from independent production companies, including by providing all three quotes internally.

Steve Davies, CEO of the APA, said: “This is a serious threat to the free market in commercial production and to the independent production, editing and post-production companies within it. But only if clients don’t see through it. I think they will.”

WPP Production responded: “Any suggestion that WPP Production misleads clients or undermines fair competition is fundamentally incorrect.”

In the lawsuit brought by Richard Foster, former CEO of Motion Entertainment at GroupM, new documents were filed on 10 September. Foster claims WPP dismissed him after he raised concerns about an alleged global system of kickbacks. According to Adweek, the documents indicate that Sony voluntarily shared information from its own investigation into WPP with Foster.

Publicis Groupe

Publicis fell 0.1% to close at €98.80. In addition to LVMH's Asia-Pacific business, Publicis won the US media account of Tiffany & Co., which has been owned by LVMH since 2021. Publicis has already managed most of LVMH's North American media since 2023.

According to Digiday, this is the fourth time in a year that Publicis has won a major media account without a competitive pitch, following PepsiCo, Microsoft in April and a large portion of Paramount in June last year.

Digiday also puts the value of PepsiCo's business into perspective. Based on figures from Comvergence, PepsiCo's global media spending in 2025 is estimated at $1.7 billion. Publicis already had the Asia-Pacific portion, meaning $1.1 billion is new business. Because of the conflict with PepsiCo, Publicis is handing Coca-Cola's North American media business to another agency, estimated at $805 million. This results in a net increase of $295 million in spending.

Publicis raised its target for organic growth in 2026 to 4.5%–5% when it reported its half-year results on 16 July.

S4 Capital

S4 Capital fell 9.1% to close at 45.65 pence, the largest decline among the six companies. There was no confirmed company news during the period measured. The share price rose 26% in early August following the publication of its half-year results.

Dentsu Group

Dentsu gained 0.8% to close at 3,637 yen. Netflix selected Dentsu following a competitive pitch as its sole holding-company media partner across Europe, the Middle East and Africa. Dentsu already worked with Netflix in the UK and will now add 21 markets. The work will be handled by teams from its Media Practice and Dentsu Lab under the dentsu ENTS banner.

Omnicom Group

Omnicom fell 1.6% to close at $79.85. Troy Ruhanen is retiring as president and CEO of Omnicom Advertising following the completion of the integration after the acquisition of Interpublic. Andrew Robertson, chairman of BBDO Worldwide, will succeed him immediately.

Andrew Robertson, CEO of Omnicom Advertising, said: “Our plan is clear. Bring in a disproportionate share of the world’s most exciting creative and strategic minds, equip them through Omni with the industry’s most advanced AI tools and data, and deliver exceptional results for a client list our competitors will envy.”

At a Goldman Sachs investor conference, CFO Phil Angelastro said, according to ExchangeWire, that Omnicom wants to move further towards performance-based remuneration. At e-commerce unit Flywheel Digital, 80% to 90% of work is already compensated based on results. Omnicom is cutting 15,000 jobs this year, bringing its workforce to 105,000.

In Australia, Omnicom Oceania is selling Marketforce's creative division in Perth to 303, part of Attivo Group. Marketforce has been operating for more than 50 years and will continue as a provider of specialist media services. Former Marketforce CEO Adam Marshall will become the first CEO of Omnicom Oceania in Western Australia.

Havas

Havas fell 1.6% to close at €17.95. Between 7 and 11 September, the company bought back 5,000 of its own shares at an average price of €18.13. Since the launch of its €50 million share buyback programme, 92,580 shares have been repurchased.

In India, Arena Media, part of Havas Media India, won the integrated media account of property developer Ashiana Housing following a multi-agency pitch.

Marketing Report Markets is an editorial analysis of share-price developments in the marcom sector and does not constitute investment advice.