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The Interpublic Group of Companies

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The Interpublic Group of Companies, Inc.
Company typePublic
IndustryAdvertising agency
PredecessorMcCann-Erickson, Inc.
Founded1930; 94 years ago (1930) (as McCann Erickson)
1961 (1961) (as Interpublic Group)
Headquarters909 Third Avenue
New York City, New York 10022
United States
Key people
Philippe Krakowsky (CEO)[1]
RevenueDecrease US$10.9 billion[2] (2023)
Increase US$1.48 billion[2] (2023)
Increase US$1.12 billion[2] (2023)
Total assetsIncrease US$19.3 billion[2] (2023)
Total equityIncrease US$4.00 billion[2] (2023)
Number of employees
57,400[2] (2023)
Websiteinterpublic.com

The Interpublic Group of Companies, Inc. (IPG) is an American publicly traded advertising company. The company consists of five major networks: FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group and Marketing Specialists, as well as several independent specialty agencies in the areas of public relations, sports marketing, talent representation and healthcare.[3] It is one of the "Big Four" agency companies, alongside WPP, Publicis, and Omnicom.[4] Phillippe Krakowsky became the company's CEO on January 1, 2021.[1]

History

[edit]

On October 2, 1930, IPG was founded in New York City as McCann-Erickson, when H.K. McCann Co. (founded in 1911) and Erickson Co. (founded in 1902) merged.[5] At the time, it was the largest agency in the ad industry.[6]

In 1960, McCann was restructured into four operating units, each reporting to a new holding company. The four units were McCann-Erickson Advertising (U.S.), McCann-Erickson Corp. (international), McCann-Marschalk, and Communications Affiliates.[6] In January 1961, McCann was renamed Interpublic Group (IPG) and created the first marketing services management holding company with McCann-Erickson as a subsidiary.[7]

In late 1973, as clients began focusing more on international strategies, McCann-Erickson combined its domestic and international branches into a single worldwide agency under IPG.[6] In 1997, the McCann-Erickson World Group was formed with several of IPG's different units.[8]

In December 2000, Deutsch Inc, reported by the New York Times at the time to be the largest and last big independent agency, was acquired by IPG to be an autonomous unit.[9] In 2001, IPG acquired True North Communications, the holding company for Foote Cone & Belding.[10][11]

In 2003, IPG agreed to pay $115 million to settle class action lawsuits brought by its shareholders. The shareholders had sued Interpublic after accounting irregularities led to restatements of financial results, causing the company's stock to fall.[12]

In March 2004, IPG renamed its McCann-Erickson World Group as McCann Worldgroup.[13]

On September 15, 2005, IPG announced plans to restate earnings for fiscal 2000 through 2004, due to problems in accounting for revenue, acquisitions and lease expenses.[14] On March 22, 2006, IPG posted a loss for the fourth quarter and restated results for the first three quarters of 2005, which reduced revenue by $14.1 million. It also announced its controller and chief accounting officer was leaving the company.[15]

IPG disposed of 51 businesses in 2005 and 2006, primarily outside the U.S.; the company said it exited 23 "loss-making international affiliates" in 2006.[16] In April 2007, IPG announced it had agreed to buy Reprise Media, a search engine marketing firm.[17] In July of that same year, FCB-Ulka Advertising Private Limited, a subsidiary of IPG, was renamed DRAFTFCB+Ulka Advertising Pvt. Ltd.[18]

In July 2008, IPG formed a media buying and planning unit called Mediabrands (later IPG Mediabrands).[19] In March 2014, IPG draftfcb was renamed as IPG's international network FCB.[20] In January 2016, the merger of IPG groups Mullen in the US and Lowe and Partners worldwide was renamed as MullenLowe Group.[21] In July 2018, IPG announced they were buying database marketing company Acxiom's Marketing Solutions business for $USD2.3 billion.[22]

In October 2020, the company announced that Phillippe Krakowsky would be succeeding Michael I. Roth as the company's CEO on January 1, 2021.[23] On January 1, 2021, Krakowsky became the company's new CEO.[1]

IPG handles the accounts of many major oil companies.[24] Asked by Reuters in 2020 to disclose their client list, IPG refused to do so.[24]

The Wall Street Journal reported on December 8, 2024, that Omnicom Group and Interpublic Group are in advanced merger discussions. This potential merger could value Interpublic at between $13 billion and $14 billion, excluding debt. If completed, this deal would unite the third and fourth largest advertising firms globally, potentially making the merged entity the world's largest advertising company, surpassing WPP in size.[25] On the New York Stock Exchange, the new firm will keep the Omnicom name and trade as "OMC" with John Wren the chairman and CEO of Omnicom and Phil Angelastro the chief financial officer and executive vice president. Daryl Simm and the IPG CEO Philippe Krakowsky will be chief operating officers and co-presidents at Omnicom.[26]

Companies

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IPG consists of dozens of businesses organized into six groups. There are three global networks: Foote, Cone & Belding (FCB); McCann Worldgroup; and MullenLowe; a media services company, IPG Mediabrands; a marketing services group, Marketing Specialists; and several independent domestic digital agencies.[27]

FCB

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FCB is one of IPG's three global networks. Its companies include the following:

  • FCB, the former Draftfcb, formed by a merger between Draft Worldwide and Foote, Cone & Belding Worldwide.
  • FCB Health, a healthcare-focused agency formed by combining three healthcare agencies: ICC, Trio and Pace.[28]
  • HelloComputer, a Cape Town-based digital agency, which merged with Mesh Interactive in 2012.[29]
  • New Honor Society, a St. Louis, Missouri-based marketing agency, formerly known as Rivet/US, itself formed with a merger between marketing agency Zipatoni Company and Toronto-based FCB Direct.[30]

IPG Mediabrands

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The IPG Mediabrands group is IPG's data management and media buying arm. Its companies include the following:

  • Ensemble Worldwide, a creative agency set up as part of IPG Mediabrands' Malaysia network.[31]
  • Healix, an agency focused on global life science and healthcare brands.[32]
  • Identity, formerly Diverse Communications, is an Australia-based agency focused on multicultural communications.[33]
  • ID Media is IPG Mediabrands' direct response planning and buying agency.[34]
  • Initiative, a media buying network which includes the former network BPN.[35]
  • IPG Media Lab, a digital marketing agency that studies digital technology for advertising programs, platforms and products.[36]
  • MAGNA, IPG Mediabrands' intelligence, investment, and innovation unit. The group tracks and measures the pricing and savings of the agency's media investments.[37]
  • Matterkind (previously known as Cadreon), previously part of IPG Mediabrands, now sits as part of IPG's suite of tech companies (consisting of Kinesso, Acxiom and Matterkind). Matterkind is IPG's ad-tech network which is involved in programmatic advertising.[38]
  • Media Experts, a Canadian subsidiary that provides advertising media services for businesses.[39]
  • Orion, IPG Mediabrands' barter agency, helps brands sell unsold products in exchange for advertising.[40] Orion's holding company includes the agencies NSA Media, OAG, Rapport and Wahlstrom.[41]
  • Promoqube, a Turkish social media agency.[42]
  • Kinesso (formerly Reprise), IPG Mediabrands' global performance marketing agency, was formed by combining mobile agency Ansible and social agency Society with search agency Reprise in 2018.[43]
  • Stickyeyes, a digital marketing company acquired by IPG Mediabrands in 2016, provides creative search, content marketing and video production.[44]
  • UM, also known as Universal McCann, is a global advertising and media agency, which includes agency J3.[35]

Marketing Specialists

[edit]

IPG's Marketing Specialists group offers marketing services across a range of disciplines. Its companies include the following:

  • Current Global, a midsized communications agency formed when Chicago-based Current Marketing merged with multimedia production house Creation.[45][46]
  • DeVries Global, a media communications agency.[47]
  • dna Communications, a healthcare agency.[48]
  • FutureBrand, a branding agency, which includes Amsterdam-based FutureBrand UXUS, formerly UXUS, and design and innovation company Hugo & Cat.[49][50]
  • Golin, an agency specializing in public relations, digital marketing and content development.[51]
  • Jack Morton Worldwide, a brand experience agency.
  • Octagon Worldwide, which includes Rogers & Cowan, a global marketing and public relations agency.
  • Weber Shandwick, a public relations firm.

McCann Worldgroup

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McCann Worldgroup logo

Formed in 1997, McCann Worldgroup is IPG's global marketing services organization, reportedly with over 24,000 employees in over 100 companies as of November 2017.[52] Its companies include the following:

  • Avrett Free Ginsberg, stylized as AFG&, a full service advertising agency.[53]
  • Commonwealth//McCann, a Detroit-based advertising agency.[54]
  • Casanova//McCann, formerly Casanova Pendrill, a Hispanic-focused advertising agency based in Orange County, California.[55]
  • Craft, an international adaption and production network of agencies.[56]
  • Fitzco, or Fitzgerald & Co., is an Atlanta-based agency.[57]
  • McCann (formerly McCann Erickson), an American global advertising agency network.[58]
  • McCann Health, a healthcare-focused agency.[59]
  • MCN FP7, or Middle Eastern Communication Network, is an agency with 60 offices in 14 countries and clients in the Middle East and North Africa.[60]
  • Momentum Worldwide, a New York City-based experiential marketing agency, which includes shopper marketing agency ChaseDesign and its subsidiary 10RedDesign.[61][62]
  • MRM, a direct and digital marketing agency based in New York City.
  • PMK*BMC, a Los Angeles-based entertainment and pop culture-focused agency that connects celebrities with brands seeking talent for content collaboration.[63]
  • Performance Art, a data-led creative/CRM agency.[64]

MullenLowe Group

[edit]
Main article: MullenLowe Group

MullenLowe Group is one of IPG's three communications networks, formed in 2015 by the merger of IPG's U.S. agency Mullen with IPG's global creative network Lowe and Partners.[65] It consists of the following components:

Independents

[edit]

IPG also has several independent marketing agencies.

  • Acxiom, a database marketing company.[72]
  • Big Family Table, a creative agency.[73]
  • Campbell Ewald, an advertising and marketing communications agency.
  • Carmichael Lynch, a Minneapolis, Minnesota-based creative agency.[74]
  • Deutsch LA and Deutsch NY (formerly Deutsch Inc.), Los Angeles and NY City-based marketing communications agencies.[75]
  • Elephant, a Brooklyn, NY & SF based digital marketing agency.[76]
  • HUGE, a Brooklyn, NY-based digital marketing agency.
  • IW Group, formerly Imada Wong Communications Group, is a West Hollywood, California-based agency.[77]
  • The Martin Agency, a Richmond, Virginia-based advertising agency.
  • RafterOne, a New Hampshire-based Salesforce Implementation Partner.[78]
  • R/GA, a New York City-based marketing and advertising agency.
  • Tierney, a Philadelphia, Pennsylvania-based agency.[79]

References

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  1. ^ a b c "IPG CEO Philippe Krakowsky on Disruption, Data and Privacy". AdWeek. January 27, 2021. Retrieved January 27, 2021.(subscription required)
  2. ^ a b c d e f "2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 20, 2024. Retrieved May 22, 2024.
  3. ^ "Agency Family Trees 2013: Interpublic Group -- IPG". Retrieved August 16, 2013.
  4. ^ The New York Times (March 31, 2002). "Advertising's Big Four: It's Their World Now". The New York Times.
  5. ^ "Did You Notice That McCann Quietly Dropped 'Erickson' From Its Name?". Business Insider. October 23, 2012. Retrieved January 15, 2019.
  6. ^ a b c "McCann Erickson Worldwide". adage.com. September 15, 2003. Retrieved January 15, 2019.
  7. ^ "Interpublic Group of Cos.: 2007 Year in Review". adage.com. May 5, 2008. Retrieved January 15, 2019.
  8. ^ "A sweeping reorganization at McCann-Erickson seeks to highlight marketing services". The New York Times. September 22, 1997. Retrieved January 18, 2019.
  9. ^ "A long courtship ends as Deutsch, the last of the big independents, says yes to Interpublic". The New York Times. December 1, 2000. Retrieved January 18, 2019.
  10. ^ "Interpublic to Acquire True North". adage.com. March 19, 2001. Retrieved January 4, 2019.
  11. ^ "Interpublic Group of Cos". adage.com. September 15, 2003. Retrieved January 15, 2019.
  12. ^ "Company news: Interpublic agrees to settle shareholder lawsuits". The New York Times. December 6, 2003. Retrieved January 16, 2019.
  13. ^ "Interpublic's McCann WorldGroup unveils new identity". campaignlive.com. March 12, 2004. Retrieved January 18, 2019.(subscription required)
  14. ^ "Interpublic Group Retraces Its Accounting Missteps". The New York Times. September 16, 2005. Retrieved January 15, 2019.
  15. ^ "More Setbacks at Interpublic". The New York Times. March 23, 2006. Retrieved January 15, 2019.
  16. ^ Johnson, Bradley (April 26, 2007). "No. 3 Interpublic Group of Cos". Adage. Retrieved November 24, 2015.
  17. ^ "Interpublic Acquires Best-in-Class Search Marketing Agency".
  18. ^ "Company Overview of DRAFTFCB+Ulka Advertising Pvt. Ltd". Bloomberg Businessweek. Archived from the original on May 28, 2011. Retrieved December 5, 2013.
  19. ^ "IPG Forms Mediabrands; UM's Brien Named CEO; Omnicom, Clear Channel Join". gigaom.com. July 9, 2008. Retrieved January 18, 2019.
  20. ^ "DraftFCB Officially Changes Name to FCB". adage.com. March 10, 2014. Retrieved January 18, 2019.
  21. ^ "MullenLowe Group launches new global identity; Lowe Profero rebrands to MullenLowe Profero". campaignbrief.com. January 25, 2016. Retrieved January 18, 2019.
  22. ^ "IPG Confirms $2.3 Billion Deal to Acquire Data Marketing Company Acxiom". adweek.com. July 2, 2018. Retrieved August 29, 2018.
  23. ^ "IPG Names Philippe Krakowsky as CEO". Wall Street Journal. October 21, 2020. Retrieved January 27, 2021.
  24. ^ a b Dang, Andrew R. C. Marshall, Valerie Volcovici, Sheila (2020). "Climate change turns up the heat on ad industry". Reuters. Retrieved July 12, 2021.{{cite news}}: CS1 maint: multiple names: authors list (link)
  25. ^ Vranica, Suzanne; Thomas, Lauren (December 8, 2024). "Omnicom in Advanced Talks to Buy Interpublic Group". The Wall Street Journal. Retrieved December 9, 2024.
  26. ^ Chapman, Michelle (December 9, 2024). "NYC ad agency titans Omnicom and Interpublic to form $30 billion marketing powerhouse". Associated Press. Retrieved December 9, 2024.
  27. ^ "10-K (Interpublic Group of Companies, Inc) (February 25, 2019)". investors.interpublic.com. February 25, 2019. Retrieved February 28, 2019.
  28. ^ "IPG brings ICC agencies into FCB Health". pharmalive.com. March 5, 2015. Retrieved January 15, 2019.
  29. ^ "NYSE-listed company snaps up Cape Town digital agency HelloComputer". ventureburn.com. April 5, 2012. Retrieved January 15, 2019.
  30. ^ "Zipatoni's giant tomato comes down as agency rebrands". bizjournals.com. September 24, 2014. Retrieved January 15, 2019.
  31. ^ "IPG Mediabrands' Ad-Tech Unit Ensemble takes out Agency of the Year at Effie Awards Malaysia 2018 for third year running". campaignbriefasia.com. December 28, 2018. Retrieved January 17, 2019.
  32. ^ "IPG launches Healix to service healthcare clients". mandmglobal.com. October 7, 2016. Retrieved January 17, 2019.
  33. ^ "IPG Mediabrands Launches Multicultural Audience-Focused Shop". bandt.com.au. October 30, 2014. Retrieved January 17, 2019.
  34. ^ "Company Overview of ID Media, Inc". bloomberg.com. Retrieved January 17, 2019.
  35. ^ a b "IPG Mediabrands to Fold BPN Worldwide into Initiative". adweek.com. January 6, 2017. Retrieved January 17, 2019.
  36. ^ "IPG Media Lab Creates Inroads with Media". digiday.com. August 21, 2013. Retrieved January 17, 2019.
  37. ^ "IPG Mediabrands Hires Former Omnicom Executive As Magna's First Global President". adweek.com. July 31, 2018. Retrieved January 17, 2019.
  38. ^ "IPG launches Matterkind, retires Cadreon brand". adnews.com.au. May 6, 2020. Retrieved June 5, 2020.
  39. ^ "IPG Mediabrands acquires Media Experts". marketingmag.ca. October 28, 2015. Retrieved January 17, 2019.
  40. ^ "With focus on transparency, barter agencies get more scrutiny". digiday.com. October 3, 2016. Retrieved January 17, 2019.
  41. ^ "Trendsetters: Brian McMahon of IPG Mediabrands' ORION Holdings Demonstrates the Advantage of Thinking Globally". internationalistmagazine.com. February 19, 2013. Retrieved January 17, 2019.
  42. ^ "IPG Mediabrands acquires Turkish social media agency". marketing-interactive.com. September 18, 2014. Retrieved January 17, 2019.
  43. ^ "IPG Mediabrands Melds Three Specialist Shops – Reprise, Ansible And Society – Into A Full-Service Performance Agency". adexchanger.com. May 21, 2018. Retrieved January 17, 2019.
  44. ^ "Stickyeyes has sights set on new era after takeover". yorkshirepost.co.uk. September 8, 2016. Retrieved July 1, 2019.
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  46. ^ "Interpubloi Group combines Current marketing, Creation". prweek.com. April 4, 2019. Retrieved May 14, 2019.
  47. ^ "SharkNinja Hands US PR Duties To DeVries Global". holmesreport.com. September 23, 2018. Retrieved January 15, 2019.
  48. ^ "Healthcare PR Firms Flourish Despite Pharma Turbulence". holmesreport.com. May 4, 2018. Retrieved January 16, 2019.
  49. ^ "New name for Futurebrand UXUS". retaildesignworld.com. January 4, 2018. Retrieved January 16, 2019.
  50. ^ "IPG's FutureBrand Buys Digital Agency Hugo & Cat". mediapost.com. August 6, 2015. Retrieved April 12, 2019.
  51. ^ "Golin Calls on Agencies to Support Female Creatives in New #MeToo Push 'Have Her Back'". adweek.com. March 16, 2018. Retrieved January 15, 2019.
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  53. ^ "AFG& : advertising & marketing assignments". adbrands.net. Retrieved January 16, 2019.
  54. ^ "Commonwealth/McCann hires Riddle as new chief creative officer". crainsdetroit.com. November 2, 2018. Retrieved January 17, 2019.
  55. ^ "Casanova McCann (US)". adbrands.net. Retrieved January 17, 2019.
  56. ^ "McCann launches Craft Worldwide as a global adaption + production unit with 2 offices in OZ - McCann Melbourne MD Simon Burett to lead units". campaignbrief.com. December 5, 2012. Retrieved January 17, 2019.
  57. ^ "McCann's Fitzgerald & Co Wins Checkers And Rally's Strategic, Creative, And Digital Duties". mediapost.com. January 27, 2016. Retrieved January 17, 2019.
  58. ^ "Fast Chat: McCann Worldgroup's Luca Lindner". adweek.com. February 28, 2013. Retrieved January 17, 2019.
  59. ^ "McCann Health Brazil's 'Valuable Heritage" Campaign Wins at ACT Responsible Tribute at Cannes 2018". lbbonline.com. June 22, 2018. Retrieved January 17, 2019.
  60. ^ "IPG gains majority stake in Middle East Communication Network". prweek.com. July 29, 2008. Retrieved January 17, 2019.
  61. ^ "Momentum Worldwide creates new experience role, appoints director". thedrum.com. June 2, 2016. Retrieved January 16, 2019.
  62. ^ "IPG's Momentum Acquires ChaseDesign, Ups Shopper Marketing Reach". mediapost.com. August 8, 2012. Retrieved January 16, 2019.
  63. ^ "How Hollywood's Unlikely PMK-BNC Merger Has Defied the Odds". adage.com. April 30, 2014. Retrieved January 17, 2019.
  64. ^ Inc. (The), Interpublic Group of Companies (July 7, 2021). "IPG Launches Performance Art, a Data-Led Creative/CRM Agency". GlobeNewswire News Room (Press release). Retrieved April 22, 2022.
  65. ^ "MullenLowe Group launches new global identity; Lowe Profero rebrands to MullenLowe Profero". campaignbrief.com. May 18, 2018. Retrieved December 19, 2018.
  66. ^ "MullenLowe to bring Mediahub to India". economictimes.indiatimes.com. May 18, 2018. Retrieved March 28, 2019.
  67. ^ "MullenLowe pinches Salt Communications for 'intellectual strategic horsepower'". The Drum. July 13, 2017. Retrieved April 2, 2019.
  68. ^ "Agency Brief: Chili's, Cheese and Birth Certificate Backpacks". adage.com. August 11, 2017. Retrieved March 28, 2019.
  69. ^ "MullenLowe Mediahub Went From Underdog to Industry Heavyweight in 2017". adweek.com. February 18, 2018. Retrieved March 28, 2019.
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  72. ^ "IPG Confirms $2.3 Billion Deal to Acquire Data Marketing Company Acxiom". adweek.com. July 2, 2018. Retrieved January 16, 2019.
  73. ^ "Hulu ruins TV for you in its celebrity-filled Emmys ad". adage.com. September 18, 2018. Retrieved January 16, 2019.
  74. ^ "The Media Business: Advertising; Mergers, munch by munch: Interpublic Group agrees to buy the feisty Carmichael Lynch". The New York Times. February 3, 1998. Retrieved January 16, 2019.
  75. ^ "Deutsch Splits New York and Los Angeles Offices Into Separate Agencies". Adweek. October 29, 2020. Retrieved June 17, 2021.
  76. ^ "Elephant Parts With Staff in New York Following Goldman Sachs Review". adweek.it. February 27, 2019. Retrieved April 2, 2019.
  77. ^ "Company Overview of IW Group, Inc". bloomberg.com. Retrieved January 16, 2019.
  78. ^ "IPG Acquires Premier Salesforce Solution Provider RafterOne". globenewswire.com (Press release). October 3, 2022. Retrieved October 3, 2022.
  79. ^ "IPG's Tierney Adds a Pair of SVP/Creative Directors". adweek.com. April 20, 2016. Retrieved January 16, 2019.

Further reading

[edit]
[edit]
  • Official website
  • Business data for Interpublic Group of Companies:
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