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The Interpublic Group of Companies Inc logo

The Interpublic Group of Companies Inc

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2019 Vault Rankings

At a Glance

Uppers

With nearly 90 different brands under its collective umbrella, Interpublic Group can offer a variety of specialty services to its clients

The company provides pro-bono media campaigns to organizations around the world to raise awareness of worthy causes

Downers

Significant competition from other large companies such as WPP

The Bottom Line

Interpublic Group is a global holding company and provider of advertising and marketing providing consumer advertising, interactive marketing, media planning and buying and public relations throughout all major world markets.

About The Interpublic Group of Companies Inc

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.

Operations

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.

Geographic Reach

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.

Financial Performance

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.

Strategy

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.

Company Background

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.

The Interpublic Group of Companies Inc

909 3rd Ave
New York, NY 10022-4731
Phone: 1 (212) 704-1200

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: IPG
Stock Exchange: , NYSE
SVP and CIO: John Halper
EVP and CFO: Frank Mergenthaler
Chairman and CEO: Michael I. Roth
Employees (This Location): 175
Employees (All Locations): 54,300

Major Office Locations

New York, NY

Other Locations

El Segundo, CA
Los Angeles, CA
San Diego, CA
San Francisco, CA
Bethany, CT
Norwalk, CT
Washington, DC
Coral Gables, FL
Miami, FL
Naples, FL
Orlando, FL
Tallahassee, FL
Atlanta, GA
Chicago, IL
Downers Grove, IL
Boston, MA
Birmingham, MI
Detroit, MI
Alexandria, MN
Minneapolis, MN
Saint Louis, MO
Charlotte, NC
Winston Salem, NC
Omaha, NE
Mountain Lakes, NJ
Trenton, NJ
New York, NY
Seattle, NY
White Plains, NY
Portland, OR
Harrisburg, PA
Philadelphia, PA
Franklin, TN
Austin, TX
Dallas, TX
Salt Lake City, UT
Crimora, VA
Virginia Beach, VA
Seattle, WA
Bengaluru, India
Chennai, India
Hyderabad, India
Kolkata, India
Kozhikode, India
Mumbai, India
New Delhi, India
Genova, Italy
Roma, Italy
Torino, Italy
Kobe, Japan
Osaka, Japan
Calgary, Canada
Mississauga, Canada
Montréal, Canada
Toronto, Canada
Vancouver, Canada
Amman, Jordan
Guayaquil, Ecuador
Berlin, Germany
Düsseldorf, Germany
Frankfurt Am Main, Germany
Köln, Germany
München, Germany
Belfast, Northern Ireland

Competitors