Dubbed “horizontality,” the idea was to simplify how WPP worked. The recent departure of WPP's CEO, Sir Martin Sorrell, has left the future of holding companies in the sector in doubt, according to industry insiders. One former WPP executive said the business model, which combined several agencies, was outdated and less efficient that claimed. "The model is not sustainable any more," he said. Holding companies also face increasing competition from consulting firms eating into their territory, while another WPP employee said agencies should "stop being shackled to this WPP mindset".
The recent departure of WPP's CEO, Sir Martin Sorrell, has left the future of holding companies in the sector in doubt, according to industry insiders. One former WPP executive said the business model, which combined several agencies, was outdated and less efficient that claimed. "The model is not sustainable any more," he said. Holding companies also face increasing competition from consulting firms eating into their territory, while another WPP employee said agencies should "stop being shackled to this WPP mindset".