Despite uncertainty around the global geopolitical climate and an ongoing global pandemic, IPG is optimistic about the rest of 2022, helped by strong results in Q1.
Organic revenue grew by 11.5% in the three months ending March 31. Net income was $159.4 million, which grew from last year despite increases in salaries and office expenses.
Echoing what has been a common theme among the major holding companies this quarter, IPG CEO Philippe Krakowsky attributed the performance to successfully combining its track record of creativity with technology and data.
“This combination is responsive to the evolving needs of modern marketers for more digital, precise and data-informed thinking, as well as the kind of integrated programs that allow IPG to deliver higher-order business solutions,” he said.
Another area in which IPG is following its industry peers is its optimism for the remainder of the year. While acknowledging the uncertainty brought by the global pandemic, economic conditions and the war in Ukraine, IPG is nonetheless raising its full-year guidance from 5% organic growth to 6%.
Looking at its different offerings, IPG has re-organized its holdings into new reporting segments.
The “Media, Data & Engagement Solutions” segment includes the media agencies within Mediabrands; digital and commerce specialist agencies, which include MRM, R/GA and Huge; as well as data agencies Acxiom and Kinesso.
The “Integrated Advertising & Creativity Led Solutions” segment is comprised of integrated and creative agencies such as McCann, FCB and MullenLowe, as well as IPG Health.
The “Specialized Communications & Experiential Solutions” segment is made up of PR agencies Weber Shandwick and Golin, as well as sports, entertainment and experiential agencies, as well as the specialist agencies within IPG DXTRA.
The integrated agency segment is the biggest contributor to IPG’s revenue, and it grew by 11.2% organically in Q1. The media and data segment is close behind in terms of total revenue, which grew by 11.5%. The specialist agency segment grew by 12.5%.
By geography, organic revenue in the “All Other Markets” segment – which is one of the company’s smallest, but includes Canada – grew by 19.9% in Q1, the second-biggest increase behind Latin America at 21.5%. The U.S., IPG’s largest market, grew by 12.2%.
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