Interpublic Group halves growth projection amid trends 'felt throughout much of the industry'
Interpublic Group has halved its growth projections amid economic uncertainty, perhaps marking a trend for the wider advertising industry.
Interpublic reviews growth projections
As one of the world’s biggest networks, the company’s full-year organic revenue has decreased from between 3 and 4% to 1 and 2%, could cause concern for insiders.
The group, which other sees the likes of Craft, FCB, FutureBrand, Golin, Huge, Initiative, Jack Morton Worldwide, Magna, McCann, Momentum, MRM//McCann, MullenLowe Group, Octagon, R/GA, UM and Weber Shandwick, reported a third quarter operating income of $219.1m, an operating margin of 11.5%.
Painting a more optimistic picture, profit came in at $148.8m, a 12.1% increase upon Q3 2016's $132.7m haul.
Michael Roth, chairman and chief executive of Interpublic, admitted that “organic revenue was negatively impacted by broader trends that are being felt throughout much of the industry”.
Roth then showed faith in the talent at the company saying they “remain among the best in their respective disciplines, which gives us confidence in the long-term competitiveness of our offerings and our client-centric service model”.
The company had to adjust its projections had to be adjusted due to “client caution and the macro environment”.
The group counts among its clients Avrett Free Ginsberg, Campbell Ewald, Carmichael Lynch, Deutsch, Hill Holliday, ID Media and The Martin Agency.