The US ad market seems to have rebounded strongly in the last quarter of 2017 judging from Interpublic’s Q4 and full year results.
Q4 revenue was $2.34bn compared to $2.26bn in 2016 on strong organic revenue growth of 3.3 per cent. Organic revenue increased by 3.7 per cent in the US and 2.9 per cent internationally.
For the full year IPG’s revenue increased to $7.88bn, organic growth of 1.8 per cent.
IPG brands include McCann, FCB, MullenLowe and R/GA in the creative sector and Mediabrand agencies Initiative and UM.
IPG CEO Michael Roth (below) says: “Looking ahead to 2018, we are targeting organic revenue growth in the range of two per cent to per cent and operating margin expansion..over the results we are reporting today, which will build on our strong long-term record of improving profitability.
“At this level of margin expansion, we will continue to invest behind our talent and in key areas such as digital, data, and analytics, which are vital to positioning us for success this year and for the long-term.”
US-based IPG’s numbers follow hard on the heels of French rival Publicis Groupe, which also does more than half its business in the US.
Organic growth at Publicis was 2.2 percent in the fourth quarter of 2017, 4.4 per cent in the US. Publicis agencies include Publicis Worldwide, Leo Burnett, Saatchi & Saatchi and Starcom.