Interpublic PR firms post single-digit growth in Q3

The holding company as a whole reported 5.6% organic revenue growth in the period.

Philippe Krakowsky took over IPG at the start of 2021.

NEW YORK: The PR firms in Interpublic Group’s Specialized Communications and Experiential Solutions segment registered single-digit growth on an organic basis in Q3, according to an IPG spokesperson.

That was in comparison to double-digit growth in Q3 2021.

The Specialized Communications and Experiential Solutions segment is comprised of IPG Dxtra and Dxtra Health and agency brands Weber Shandwick, Golin, DeVries Global, Current Global, R&CPMK, ReviveHealth, United Minds, Jack Morton, Momentum and Octagon.

Rival holding company Omnicom Group noted a 12.6% revenue increase for the agencies in Omnicom PR Group in Q3, outpacing the holding company’s overall 7.5% growth. Omnicom’s PR firms include FleishmanHillard, Ketchum, Mercury, Porter Novelli and Cone. WPP is set to report its Q3 earnings next week. Publicis Group does not break out revenue for its PR firms.

IPG’s Specialized Communications and Experiential Solutions segment overall posted a 7.8% organic revenue increase in Q3 to $344.9 million. Experiential Solutions saw double-digit growth across Jack Morton, Octagon and Momentum, an IPG spokesperson told PRWeek. 

Highlighting client wins during the quarter, an IPG spokesman said an integrated Dxtra Health team won a significant brand launch by life-sciences company Perkin Elmer. The team included staff from FutureBrand, Jack Health and Weber Shandwick. Golin won AOR duties for West Monroe, a Chicago-headquartered digital services firm. Weber’s new business wins included SpotHero in North America; the firm lost U.S. AOR duties for grocery retailer Aldi to Zeno Group. 

Notable work for events-focused firms in the unit include Octagon developing Coca-Cola’s FIFA World Cup Trophy Tour and a campaign highlighting Home Depot’s 20th season sponsoring ESPN’s “College GameDay.” Octagon and R&CPMK worked with Amazon on the launch of “Thursday Night Football” on Prime Video.

Jack Morton won work from clients including McKesson, Siemens, Intel, Cigna, Riot Games and McDonalds. It also produced Cadillac’s U.S. Open sponsorship at the U.S. Tennis Center. 

“Our agencies that specialize in live events continued their strong return to growth,” the spokesperson said. “The industry is seeing budgets shift from more traditional marketing to the kinds of engaging experiences that allow consumers to build emotional connections and lasting relationships with brands, often connecting the physical and digital space.”  

IPG’s reorganized reporting structure took effect in Q1. The company previously was composed of two units, Interactive Agency Networks and Dxtra, but it broke its agencies into three groups this year: Media Data and Engagement Solutions, Integrated Advertising and Creativity Led Solutions and Specialized Communications and Experiential Solutions.

The holding company as a whole reported a 5.6% organic net revenue increase in Q3 to $2.3 billion. IPG posted net income of $251.8 million in Q3, compared to $239.9 million a year ago. Despite the pace of its revenue increase slowing year-over-year, IPG raised its full-year outlook for all of 2022.

In Q3, the holding company reported an organic increase in revenue of 4.4% in the U.S., 19.8% in Latin America, 4.9% in the U.K, 4.7% in Continental Europe, 5.6% in Asia-Pacific and 10.6% in all other markets.

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