Interpublic CMG Q3 earnings rise 10.9%

NEW YORK: Interpublic Group's (IPG) Constituency Management Group (CMG) unit, which includes its PR agencies, reported a third-quarter organic revenue increase of 10.9% to $293.8 million.

NEW YORK: Interpublic Group's (IPG) Constituency Management Group (CMG) unit, which includes its PR agencies, reported a third-quarter organic revenue increase of 10.9% to $293.8 million.

Overall, IPG posted an 8.7% organic revenue increase to $1.73 billion in Q3, compared with the prior year. Year-over-year Q3 US revenue was up 10.1% organically to $995.5 million, while international revenue grew by 6.7% organically to $731 million.

IPG's PR agencies reported an organic growth increase of 10.8%, year-over-year, in Q3 and 8.8% year-to-date, said Harris Diamond, CEO of CMG and Weber Shandwick. CMG includes agencies such as Weber, GolinHarris, and DeVries, as well as events firms and experiential marketing companies.

Diamond said the gains can be attributed to a combination of new business wins and organic growth with existing clients. He declined to comment on specific Q3 clients wins. Most recently, Weber Shandwick won Kellogg, and BAE Systems accounts.

“A lot of it has to do with digital growth with existing clients and new clients,” he said. “It's both in the US and abroad, with the US as the strongest.”  

Pitching for social media work has become more competitive, Diamond added, but he said the space is an area where PR can stand out.

“We are against digital shops, advertising agencies, and direct agencies,” he continued.  “It's the best idea wins, but I think generally in social media, given the context of engagement and conversation, we generally have the better ideas.”

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