In today’s Digest we cover investor expectations for Netflix after its Warner bid, the IAB unveiling guidelines for AI-driven commerce media, and WPP reportedly launching talks to sell Burson, its PR arm.

Netflix to refocus on ads and content after Warner bid

Investors are looking to Netflix to highlight content investment and advertising growth when it reports quarterly earnings, marking its first update since walking away from a proposed deal for Warner Bros. Discovery. The failed acquisition would have given Netflix access to major franchises without the cost of building its own IP. Analysts expect Netflix to post a 15.5% rise in first-quarter revenue to USD$12.18bn (£9.62bn), including an estimated USD$634m (£500.9m) from advertising, signalling the growing importance of its ad-supported business.

The company’s recent US price increases could further boost revenues while nudging more users toward its lower-cost, ad-supported tier. Netflix shares have climbed 13% this year and are up roughly 26% since the Warner Bros deal fell through, as investors anticipate a renewed focus on scalable growth areas such as live programming and sports. 

IAB sets AI commerce media guidelines

The Interactive Advertising Bureau (IAB) announced the launch of a new industry guide, Building a Competitive Commerce Media Ecosystem, at its Connected Commerce Summit in New York. This guide outlines how commerce media networks can scale and compete in an increasingly AI-driven, performance-focused market. The guidance comes as the sector enters a more mature phase, transitioning from rapid expansion fuelled by the rise of retail media networks to a focus on operational execution, measurable outcomes, and sustainable business models. 

The framework sets out strategic operating models for commerce media organisations, including driving new revenue streams, improving profitability, enhancing omnichannel customer experiences, and building differentiation to attract brand investment. It also highlights the need for core capabilities such as measuring incremental impact and linking media spend to real-world commerce outcomes across digital and physical channels. 

According to the IAB’s VP for commerce and retail media, Collin Colburn, “For several years, commerce media has benefited from momentum. But momentum, on its own, is not a strategy. The next chapter will be defined by rigor and by how well companies translate proximity-to-transaction into measurable, sustained performance.”

WPP in talks to sell Burson

WPP is reportedly exploring a potential sale of its public relations arm, Burson, as the advertising group continues to streamline operations under its broader transformation strategy. According to reports, advisers at Goldman Sachs have been engaged to assess strategic options, which could lead to a divestment. If completed, the move would mark WPP’s near-total exit from the PR sector, following the earlier sale of its majority stake in FGS Global.

The potential sale aligns with WPP’s ‘Elevate28’ plan, a sweeping restructuring effort designed to dismantle its traditional holding company model, deliver £500m in cost savings, and transition toward an AI-enabled operating structure. 

While WPP has declined to comment, discussions around asset sales have been ongoing, with previous reports indicating internal reviews aimed at sharpening the group’s focus.