The post Advertising agencies face 60% stock plunge as companies turn to AI marketing appeared on BitcoinEthereumNews.com.

Stock prices for advertising companies have taken a beating in 2025, with artificial intelligence threatening to change how brands create and manage their marketing campaigns. Yet some market watchers believe these firms might actually benefit from the changes ahead. British advertising giant WPP Plc has seen its stock price drop 60% this year after losing several major clients. Other companies in the sector, including Publicis Groupe SA and Omnicom Group Inc., have also declined, though not as sharply. Investors worry that AI will soon handle much of the hands-on work that agencies currently do. However, a growing number of analysts think these worries might be overblown. They say big brands will need agencies more than ever to help them manage advertising across an increasingly complicated media world. Stock recommendations for Publicis and Omnicom have recently reached some of their highest levels in years. “The industry is being disrupted, but it’s not being disintermediated — I think that’s the key,” said Mark Giarelli, an analyst at Morningstar. New AI tools raise concerns over in-house marketing New AI tools have gained significant ground this year. Google’s Nano Banana and OpenAI’s Sora 2 can create images and videos just from written instructions. Coca-Cola Co. ran a Christmas commercial made by AI for the second year in a row. Tech giants are also putting pressure on the industry. Alphabet Inc. and Meta Platforms Inc. have introduced their own tools that let brands design ad campaigns without hiring outside consultants. The biggest worry is that companies might use these automated systems to build their own marketing departments. In September, cybersecurity company Palo Alto Networks Inc. said it created an entire advertising campaign by itself without help from any outside agencies. But Google and Meta cannot help brands figure out how to spread their advertising budgets…

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Filed under: News - @ December 14, 2025 1:25 pm