Interpublic Group (IPG) reported worldwide net revenue growth of 1.7 per cent in its second quarter 2024 results, however, its Asia Pacific region saw a 2.4 per cent drop in revenue — its only region to record a drop.
CEO Philippe Krakowsky said the holding group’s performance in the last three months was “solid” citing a “moderate acceleration” in organic growth and an improvement in its margins.
“Consistent with our longer-term performance, IPG Mediabrands and IPG Health led the way in the quarter. We also saw notable contributions to growth from Deutsch LA, Golin and Acxiom. Creatively, our agencies continued to garner exceptional levels of recognition for the quality of their ideas and innovation, across all marketing disciplines,” he said.
Its total revenue climbed from $US2.71 billion to $US2.67 billion year-on-year ($AU4.13 billion vs $AU4.07 billion).
However, its net revenue dropped 0.1 per cent in Q2 year-on-year, though organic increase of net revenue was up 1.7 per cent year-on-year.
Comparing the first half of this year with the first half of 2023 paints a slightly rosier picture though. Its total revenue, including billable expenses, was $US5.21 billion, compared to $US5.19 billion ($AU7.94 billion vs $AU7.91 billion).
The group’s net revenue was up 0.1 per cent to $US4.51 billion ($AU6.87 billion) and the organic increase of the net revenue was up 1.5 per cent year-on-year.
“The most successful businesses in our portfolio continue to demonstrate specialised, high-value services that identify and reach audiences with greater precision and accountability, in turn leading to growth in our clients’ brands and businesses,” said Krakowsky.
“Much of this work is powered by our industry-leading audience data and a technology stack that unifies the marketing funnel. This enables marketers to assess and understand the value of their investments, whether on technology platforms, in earned and paid media, or in other key sales and retail channels. We continue to focus on these growth areas of the business, as well as on integrating generative AI tools and technologies into our content and creative offerings.”
Campaign reported that IPG’s creative agencies performed the strongest with the likes of McCann Worldgroup, MullenLowe Group and FCB, growing net revenue three per cent to $US910.1 million ($AU1.38 billion).
Meanwhile, revenue across IPG’s media, data and engagement solutions (IPG Mediabrands, Acxiom and specialist agencies like R/GA and Huge) climbed 0.8 per cent to $US1.06 billion ($AU1.61 billion). In May, UM won the global Levi’s media account, which is thought to be worth some $AU217 million, according to COMvergence.
Its comms and experiential shops, such as Weber Shandwick and Golin, saw organic growth of 1.3 per cent to $US353.5 million ($AU538.5 million).
