Interpublic’s organic growth slowed in Q3, up just 1.4 per cent although net revenue increased by 8.7 per cent to hit $2.06bn.
IPG’s organic growth for the year to date is now 3.5 per cent, still on target to hit CEO Michael Roth’s target of around three per cent. US rival Omnicom recorded 2.2 per cent organic growth in Q3 while France’s Publicis shocked investors with a 2.7per cent decrease.
Roth (above) blamed the slower growth on “account-specific headwinds” (losses.) Roth says: “ Our growth was led by our media, healthcare marketing, public relations and sports & entertainment offerings. We saw contributions from a broad range of client sectors, including healthcare, financial services, retail, tech and telecom, and consumer goods.
Regionally, international markets led our growth, while in the US we are working our way through the impact of certain account-specific headwinds. Our overall performance continues to reflect our strong offerings and differentiated strategy, as well as the power of the ideas created by our talented people.
“Acxiom (IPG’s new data acquisition) continues to perform consistent with our plan and we are seeing the benefit of our leadership position in data management capabilities.”
Problems with US clients have been a pretty common theme of the most of the ad holding companies this year, clients there are obviously turning the screw on agency fees and moving more functions in-house or to cheaper suppliers.