About Weber Shandwick Worldwide
The Interpublic Group of Companies (IPG) is one of the world's largest advertising and marketing services conglomerates. The company has offices in more than 100 countries from which it operates three global networks that provide integrated, large-scale advertising and marketing services: McCann Worldgroup; Foote, Cone & Belding (FCB); and MullenLowe Group. IPG Mediabrands is the global media and data arm of IPG and includes the UM and Initiative agencies. The firm also has agencies that specialize in certain practice areas, such as Octagon (sports, entertainment, and lifestyle marketing) and MRM//McCann (digital services). The US is IPG's largest market.
Interpublic (IPG) operates through two reportable segments: Integrated Agency Networks (IAN) and Constituency Management Group (CMG).
IAN includes McCann Worldgroup; Foote, Cone & Belding (FCB); MullenLowe Group; IPG Mediabrands and Acxiom; digital specialist agencies; and domestic integrated agencies. IAN accounts for nearly 80% of total revenue.
CMG consists 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. CMG accounts for around 20% of revenue.
Based in New York City, Interpublic (IPG) operates through offices in more than 100 countries. The US contributes about 60% of sales, while Europe generates more than 15% and Asia/Pacific accounts for about 10%. The remainder comes from Latin American and other regions.
Sales and Marketing
Interpublic (IPG) focuses on its top 100 clients, which constitute approximately 55% to 60% of revenue. The company's top ten clients accounted for approximately 15% of net revenue. Its largest client accounted for nearly 5% of net revenue. IPG's largest client sectors include auto and transportation, healthcare, and technology and telecom.
Throughout the five-year period ending in 2019 Interpublic (IPG) reported year-over-year revenue and net income increases for the most part, except for 2017, when the company cited unrest in the industry—such as changing consumer behaviors and marketers' new business models—resulting in slower growth that year.
IPG reported $10.2 billion in revenue for fiscal 2019, up from $9.7 billion in 2018. The increase was attributable to a combination of net client wins and net higher spending from existing clients. Clients in the consumer packaged goods, healthcare, retail, and auto sectors helped drive the growth.
Net income was $673.9 million in 2019, up from $637.7 million the prior year on higher revenue.
Cash at the end of 2019 was $1.2 billion. Cash from operations was $1.5 billion, while investing activities used $161.7 million, primarily used for capital expenditures. Financing activities used $843.0 million, driven by net proceeds from long-term debt.
Interpublic's (IPG's) holding company structure allows it to maintain a diversified client base across a range of sectors; however, it operates in an industry where media channels continue to fragment and clients face an increasingly complex consumer environment. To stay ahead of these challenges the firm has been investing in creative and strategic talent in digital services, data-driven marketing, and high-growth geographic regions.
The company remains focused on organic revenue growth through new client wins. In 2019 IPG cited new business from companies such as Levi Strauss, Humana, Airbnb, and Slack Technologies.
Standard Oil advertising executive Harrison McCann opened the H. K. McCann Company in 1911 and signed Standard Oil of New Jersey (later Exxon) as his first client. McCann's ad business boomed as the automobile became an integral part of American life. His firm merged with Alfred Erickson's agency (created 1902) in 1930, forming the McCann-Erickson Company. At the end of the decade, the firm hired Marion Harper, a top Yale graduate, as a mailroom clerk. Harper became president in 1948 and began acquiring other ad agencies.
By 1961 Harper controlled more than 20 companies; that year he unveiled a plan to create a holding company that would let the ad firms operate separately, allowing them to work on accounts for competing products, but giving them the parent firm's financial and information resources. He named the company Interpublic Inc. after a German research company owned by the former H. K. McCann Co. The conglomerate continued expanding and was renamed The Interpublic Group of Companies in 1964. The company went public in 1971.
510 Marquette Ave FL 13
Minneapolis, MN 55402-1102
Phone: 1 (952) 832-5000
Employer Type: Privately Owned
President Of East: Joy Farber-kolo
President Of North: Greg Power
Svp Corporate Healthcare: Mary J Walker
Employees (This Location): 199
Employees (All Locations): 199