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Interpublic Group of Companies
Type Public (NYSEIPG)
Headquarters New York City, New York, USA
Key people Michael I. Roth, Chairman & CEO
Industry Advertising
Revenue $6.693 billion USD (2008)
Operating income $590 million USD (2008)
Net income $295 million USD (2008)
Employees 40,000 (2009)
Website http://www.interpublic.com

The Interpublic Group of Companies, Inc. (IPG) (NYSEIPG) is one of the big four global advertising holding companies (the others being Omnicom, WPP and Publicis). Headquartered in New York City, it has 40,000 employees and reported full−year revenues of US$6.96 billion for 2008. Its subsidiaries specialize in consumer advertising, interactive marketing, media planning and buying, public relations and other specialized disciplines like sports and event marketing. The company’s current chairman and CEO is Michael I. Roth.

As an advertising holding company, Interpublic sets company-wide financial objectives and corporate strategy, directs collaborative inter-agency programs, establishes fiscal management and operational controls, guides personnel policy, conducts investor relations and initiates, manages and approves mergers and acquisitions. In addition, it provides limited centralized functional services that offer its companies operational efficiencies, including accounting and finance, marketing information retrieval and analysis, legal services, real estate expertise, travel services, recruitment aid, employee benefits and executive compensation management.

Contents

History

Interpublic Group’s lineage goes back to the 1870s. Foote Cone and Belding, now part of Draftfcb, is one of the United States’ earliest advertising agencies. Alfred W. Erickson and Harrison K. McCann set up shops under their names in 1902 and 1911, respectively. Lintas, founded in 1929 as the in-house advertising agency for Lever Brothers, is now part of Lowe & Partners Worldwide.

Interpublic Group was incorporated in Delaware in September 1930 under the name of McCann Erickson. The company has operated under the Interpublic name since January 1961 when it became the world’s first marketing services management holding company, with McCann-Erickson and McCann-Marschalk as its two subsidiaries. The company went public in 1971. It goes by ticker ‘IPG’ on the New York Stock Exchange.

Turnaround

From 1999 to 2001, Interpublic purchased several hundred companies. This rapid expansion left the company overextended and susceptible to shareholder lawsuits and a U.S. Securities and Exchange Commission (SEC) investigation. As a result, in 2002, IPG suffered a precipitous drop in its stock price,[1] and a damaged reputation due to an accounting scandal.[2]

Following these events, a new management team was brought in by the Board of Directors in 2004-2005, and since that time, management has worked to turn the company around.[3]

For 2008, IPG hit its previously stated operating margin goal of 8.5 to 9 percent for the year, achieving a margin of 8.5 percent. In addition, organic revenue grew at peer-levels, with a 3.8 percent year-to-year increase. IPG had over US$6.9 billion in revenue in 2008.[4]

Operations

Interpublic operates in more than 90 countries worldwide. It has three global brands that provide integrated, large-scale advertising and marketing solutions for clients – McCann Worldgroup, Draftfcb, and Lowe & Partners Worldwide – as well as a number of domestic integrated agencies and global media networks.

Interpublic has agencies that serve as marketing specialists across a range of channels. These include corporate branding (ex. FutureBrand), experiential marketing (ex. Jack Morton), sports marketing (ex. Octagon), public relations specialists (ex. Weber Shandwick and GolinHarris), healthcare communications (McCann Erickson Healthcare), and digital agencies (ex. R/GA).

In 2008, Interpublic created a management entity called Mediabrands[5] to oversee its two global media networks, Initiative and Universal McCann (now known as UM), which provide specialized services in media planning and buying, market intelligence and return-on-marketing investment analysis for clients.

Some Interpublic companies include:

  • Mullen
  • MWW Group
  • NAS Recruitment Communications
  • Newspaper Services of America
  • Octagon
  • ORION Trading
  • Outdoor Services (OSI)
  • PMK/HBH
  • R/GA
  • Reprise Media
  • The Rhoads Group
  • RIVET
  • Rogers & Cowan
  • Segal
  • Siboney
  • The Sloan Group
  • TAG
  • Tierney Communications
  • TM Advertising
  • Translation, LLC
  • UM
  • Wahlstrom Group
  • Weber Shandwick

References

External links

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