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WPP Plc has named Microsoft Corp. executive Cindy Rose as its next chief executive officer, replacing Mark Read, as the advertising group looks for ways to restart sales growth and win new customers.
Rose, 59, will take on the role leading the advertising group beginning Sept. 1, the company said in a statement on Thursday. Rose is currently chief operating officer of Microsoft’s global enterprise business and has previously held roles leading the company in Western Europe and the UK.
The announcement comes a day after WPP shares hit a 16-year low after the company cut its full-year outlook. The media company is dealing with a downturn in advertising spending and has recently lost a string of contracts to rivals, including the $1.7 billion account for M&Ms and Snickers owner Mars Inc., which moved to longtime rival Publicis Groupe SA.
WPP shares were up 2.3% at 9:03 a.m. in London. Shares have fallen around 47% for the year.
“While Rose lacks equity market-facing leadership experience, she should be very familiar with the business, given that she’s been on the board since 2019,” Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said. “She’ll need to hit the ground running if she’s to stem client losses and turn WPP’s performance around.”
At WPP, Rose will need to spearhead a turnaround of the company as the industry is being shaken by emerging technologies such as artificial intelligence. She’ll be based in London and New York.
AI has been changing the way the advertising industry operates, including how it makes, buys and targets campaigns. Agencies can gain a competitive advantage if they can successfully adapt their teams and capabilities for the AI era, and many of them have been plowing hundreds of millions of dollars into the emerging technology. But reduced client spending is weighing on the sector. And there are fears that as AI-generated advertising tools improve, it will be harder for agencies like WPP to justify their fees. Its rival Publicis has been nabbing clients from WPP after years of investing in consulting and data businesses.
Rose has been on WPP’s board since 2019 and previously worked for the Walt Disney Company, Virgin Media and Vodafone, before joining Microsoft in 2016, according to her LinkedIn profile. She brings experience from Microsoft in helping large corporate customers — such as the Premier League and Holland America Line — transform their businesses using digital technology and AI.
“Cindy has supported the digital transformation of large enterprises around the world, including embracing AI to create new customer experiences, business models and revenue streams,” WPP Chair Philip Jansen said in the statement.
Once the world’s largest ad agency globally, WPP has been working on ways to reignite growth and streamline its operations. The British ad firm had previously restructured its stable of brands to save costs and announced a plan to spend hundreds of millions of pounds on new technologies including building out AI capabilities.
Read had been CEO for seven years and had been with WPP for more than 30 years. He was previously Martin Sorrell’s deputy, taking over after the WPP founder was ousted in 2018. Read will stay on to help with the transition until the end of the year, the company said in the statement.
This story was originally featured on Fortune.com
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