IPG Earnings: IPG Awaits Higher Spending by Tech Clients, but More Agency Integration Is Required

IPG again missed expectations during the third quarter and lowered its growth guidance for the year, lagging its major rivals. Publicis and Omnicom posted solid organic growth, while Publicis increased its full-year net revenue outlook. IPG’s net revenue declined organically from last year, as the firm’s tech and telecom clients have been cutting spending. The firm’s exposure to those industries is greater than those of Publicis and Omnicom but less than WPP. IPG also lacks seamless integration of its creative offerings with media and data and has had to improve its media buying, which requires some changes to its trading model, both contributing to its weak quarter.