The Interpublic Group of Companies is one of the world's largest advertising and marketing services conglomerates. Its flagship creative agencies include McCann Worldgroup and Lowe & Partners, while such firms as Deutsch, and Hill, Holliday are leaders in the US advertising business. Interpublic also offers direct marketing, media services, and public relations through such agencies as Initiative and Weber Shandwick. Its largest have clients included General Motors, Johnson & Johnson, Microsoft, Samsung, and Unilever.
Interpublic operates through two reportable segments: Integrated Agency Networks (IAN) and Constituency Management Group (CMG).
IAN is comprised of McCann Worldgroup, Foote, Cone & Belding (FCB), MullenLowe Group, IPG Mediabrands, digital specialist agencies, and domestic integrated agencies. IAN is the company's largest market, accounting for more than 80% of total revenue.
CMG is comprised of a number of specialist marketing services offerings. The companies specialize in consumer advertising, digital marketing, communications panning and media buying, public relations and specialized communications disciplines.
Interpublic is a truly global advertising company. Based in New York City, the company operates through offices in more than 100 countries. During fiscal 2016 the US contributed almost 60% of sales.
Sales and Marketing
Interpublic focuses on its top 100 clients, which constitute approximately around 60% of the company's total revenues. The company’s top ten clients accounted for approximately 20% of revenue. Interpublic's largest client sectors include auto and transportation, healthcare, technology, and telecom.
Interpublic's revenue has been increasing during the past several fiscal years. In fiscal 2016 the company's revenue increased to $7.8 billion compared to $7.6 billion in fiscal 2015, primarily due to increased revenue from its Integrated Agency Networks segment.
In fiscal 2016 Interpublic's net income was $608.5 million compared to $454.6 million in fiscal 2015, mainly because of increased operating expenses.
Over the years Interpublic's growth strategy has involved acquisitions and acquiring controlling stakes in emerging markets. Interpublic integrates acquisitions into its global network of existing agencies. Many of its purchases include firms specializing in digital and social media, healthcare communications, and public relations.
Mergers and Acquisitions
In 2015 the company made a strategic investment in Samba TV, an emerging leader in television analytics, data, and attribution. Also in 2015, Interpublic acquired a majority stake in the Russian affiliates of the company's three global creative networks, McCann, Mullen Lowe and FCB.