15 Best Advertising Stocks to Buy According to Hedge Funds

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12) WPP plc (NYSE:WPP)

Number of Hedge Fund Holders: 4

WPP plc (NYSE:WPP) operates as a communications services group. It offers operations spanning advertising, media investment management, consultancy, public relations, healthcare and specialist communications, and branding and identity services. WPP plc (NYSE:WPP) secured significant new business wins and was able to maintain its full-year guidance for like-for-like net sales and margin improvement. The company won Amazon’s media account outside the Americas and has also expanded its relationship with Unilever. WPP plc (NYSE:WPP)’s recent win of Amazon’s media account for the APAC and EMEA regions was a significant development.

Given that Amazon’s global advertising spending is immense, WPP plc (NYSE:WPP) now boasts one of the most lucrative media accounts in the industry. The account includes a variety of media planning and buying activities, which were earlier handled by IPG Mediabrands. By managing a significant portion of Amazon’s regional media planning and execution, WPP plc (NYSE:WPP) will be able to boost its revenue streams and demonstrate expertise in handling complex, high-value global accounts.

As per Ad Age, Amazon reported worldwide advertising and other promotional costs of $20.3 billion in 2023. Managing even a portion of this spending for the APAC and EMEA regions will result in substantial billing for WPP plc (NYSE:WPP). Furthermore, with the company handling media planning, buying, and campaign execution for Amazon in these key regions, it will gain revenue from both service fees and commissions on media purchases.

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