Brands are dealing with fewer agencies, turning away from fragmented rosters, and they want more from that relationship, according to reports from global advertising groups.
WPP, Publicis Groupe, Havas, Omnicom and dentsu, reporting June quarter results, point to similar client behaviour.
Publicis and Omnicom both raised full-year guidance on the back of accelerating organic growth.
WPP and dentsu continued to report a fall in organic growth as they restructured via turnaround plans.
"We truly believe that in this environment, scale alone is not a guarantee of competitive advantage," said Yannick Bolloré, CEO Havas.
"Our clients... are increasingly expecting more integrated capabilities, more agility, and above all, measurable business outcomes."
At UK’s WPP, chief executive Cindy Rose pointed to Wendy's decision to consolidate its media business with WPP Media.
"That's a client choosing to consolidate with us because of the benefits of integration," Rose said.
At Publicis, CEO Arthur Sadoun said pitches are changing shape.
"The pitches are shorter, they are more on capabilities, and clients understand this need," Sadoun said.
"In some cases, actually, we are not pitching anymore and winning without a pitch, just about the client kicking the tires."
At Omnicom, CEO John Wren described the pitch environment as "as brutal” as it has ever been.
"We're winning, and we're winning our fair share,” he said. “We could always win one or two more."
Publicis, the standout leader on growth, delivered net organic growth of 4.8% in the June quarter, taking its first-half figure to 4.7%, and lifted full-year guidance to a range of 4.5% to 5%.
Sadoun attributed the acceleration partly to a shrinking competitive set for the largest accounts, saying the field of credible bidders above €800 million in spend had narrowed "from four to three players”.
IPG has been absorbed into Omnicom, creating the world’s biggest advertising group by revenue.
Omnicom's core operations, which exclude businesses held for sale following its Interpublic acquisition, grew organic revenue 6.1% in the quarter and 5% year-to-date. The company raised full year guidance to 5%, up from 4% to 4.5%.
Havas reported organic growth of 2.5% in both the quarter and the half and confirmed its full year target of 2% to 3% growth.
WPP, working to a restructure plan, reported a like-for-like fall in net sales of 4.7% for the half year.
However, this was a sequential improvement from a 6.7% drop in the March quarter.
The company says it is on track to hit full year guidance of a low- to mid-single-digit decline in the second half.
Dentsu reported flat organic growth at just 0.3% in the June quarter but managed to lift profit and its operating margin on the back of cost cutting and restructuring.
Net revenue was up 3.7% to ¥583,068 million in the half year to June, underlying operating profit was 6.6% higher at ¥71,982 million, helped by the sale of the Dentsu Ginza Building, and the operating margin was 12.3%, up 30 basis points.
The Japan-based global advertising group is forecasting full year revenue up 3.9% and underlying operating profit down 3.6%.
The Middle East conflict has been a drag on results in general.
Publicis chief financial officer Loris Nold put the regional hit at 30 basis points on June quarter organic growth, with the region representing less than 3% of group revenue.
WPP said its Middle East business was down around 10% in the first half.
Havas said its exposure was below 2% of revenue with "no material impact" on the group's financial statements.
Omnicom said Middle East and Africa revenue fell by double digits.
On artificial intelligence, everyone is working on the productivity and margin lever rather than a competitive threat.
Bolloré said client anxiety about agency survival had faded: "For the past six months... we have no more questions on … survival of the agencies."
Omnicom's head of AI and technology, Paolo Cerruti, said agentic workflows were improving both "efficiency" and "effectiveness" for clients.
Publicis said AI tool costs were being offset by productivity gains showing through in profit margins.
WPP has built AI and data around what Rose called its "Trust Principles," under which client data never leaves the client's own environment.
"Clients own and control their data and intelligence, full stop," Rose said.
At dentsu, the company said comparing the impact of AI is like asking how much of a company's growth can be attributed to Excel.
The group said it saved 107,000 working hours through AI in the last financial year and expects to save 200,000 hours in 2026.
June half 2026 results
| WPP | Publicis | Havas | Omnicom | Dentsu | |
|---|---|---|---|---|---|
| H1 organic growth | -4.7% (Q2: -2.8%, Q1: -6.7%) | +4.7% (Q2: +4.8%) | +2.5% (Q2: +2.5%) | +5.0% YTD (Q2: +6.1%, core ops) | +0.3% group (Japan +5.0%; Americas -5.0%; APAC -3.8%; EMEA -0.2%) |
| H1 operating margin | 8.4% (up 20bps YoY) | 17.5% headline (record, up 17bps) | 11.0% adjusted EBIT (up 30bps) | 16.4% adjusted EBITDA, core ops (up 220bps) | 12.3% underlying (up 30bps) |
| FY guidance direction | Reiterated: LFL down low-mid single digits H2; margin 12–13% | Raised: organic to 4.5–5% (from 4–5%) | Reiterated: organic 2–3%; margin +30–50bps | Raised: organic to 5.0% (from 4–4.5%) | Reiterated: net revenue +2.7%; margin "13% range"; long-term 16% margin target pushed from FY2027 to FY2028 |
| New business tone | Number one in net new business (JP Morgan), but still a net drag | Reduced competitor field; six major wins, ~200bps FY contribution | Skechers, Farmers Insurance wins; cautious on 2027 | "Brutal" pitch market; growth from client expansion + wins | Major net loss in Americas media (one-off, not competitiveness); Netflix win expanded to 22 markets |
| Middle East exposure | ~10% down in H1 | 30bps drag on Q2 organic; <3% of revenue | <2% of revenue; no material impact | Double-digit decline in MEA revenue | Not directly quantified; flagged as an ongoing risk to H2 outlook |
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.