Four core strategic priorities

Our reason for being, the justification for WPP’s existence, continues to be to add value to our clients’ businesses and our people’s careers. Our goal remains to be the world’s most successful communications services advisor to multinational, regional and local companies.

To that end, we have four core strategic priorities.

  1. Increase the combined geographic share of revenues from the faster-growing markets of Asia Pacific, Latin America, Africa and the Middle East, and Central and Eastern Europe to 40-45%.
  2. Increase the share of revenues of new media to 40-45%.
  3. Maintain the share of more measurable marketing services – such as Data Investment Management and direct, digital and interactive – at 50% of revenues, with a focus on the application of new technology, big data and digital.
  4. Achieve ‘horizontality’ by ensuring our people work together for the benefit of clients, primarily through two horizontal integrators: Global Client Leaders and Country Managers.

If we implement this strategy effectively then our business will be geographically and functionally well positioned to compete successfully and to deliver on our long-term financial targets:

  • Revenue and gross margin or net sales growth greater than the industry average, supplemented by acquisitions.
  • Annual improvement in operating margin and gross margin or net sales margin of 0.3 margin points or more, excluding the impact of currency, depending on revenue and gross margin (net sales) growth, and staff cost to revenue ratio improvement of 0.2 margin points or more.
  • Annual diluted headline EPS growth of 10% to 15% delivered through revenue and gross margin (net sales) growth, margin expansion, acquisitions and share buy-backs.

Chapter 6 of 13