Things really must be getting better in the global advertising economy, the cynical might observe. Interpublic, the world’s fourth-largest and most financially challenged advertising conglomerate, has just reported a decent set of Q4 results.
Despite a heavy kicking from principal clients SC Johnson – which quit after decades at IPG subsidiary DraftFCB – and Microsoft – which withdrew all its media strategy and planning business from media powerhouse Universal McCann – IPG was able to report profits (net income) up nearly 40% (50 cents compared with 36 cents per share) on revenue slightly ahead at $2.07bn.
Admittedly IPG chief executive Michael Roth was wary of calling a recovery. “We have some local wins and some existing clients spending money, but I wouldn’t say that the recovery is taking hold and we’ve seen bottom,” he said during the conference call.
But that cautious scepticism was surely belied by his assertion elsewhere that the company is setting out on the acquisition trail.
Besides, a slew of uplifting data elsewhere seems to suggest that IPG’s positive figures are not an isolated anomaly. Publicis Groupe and Omnicom, respectively numbers 3 and 2 in the world, have already posted Q4 results ahead of analysts’ predictions. WPP has yet to report, but there is no evidence the results will be grim. On the contrary, I have every reason to believe pre-tax profits and revenue will be well ahead of analysts’ expectations.
More circumstantially, but no less significantly, the US Advertiser Optimism Index – roughly equivalent to the IPA/BDO Bellwether Report over here – has just reported the second-highest level of confidence in ad budgets being raised since 2008. The index, published by research company Advertiser Perceptions, measured the sentiment of advertisers and agencies during October and November.
Finally, UK-based WARC has just produced a report suggesting America is leading the world out of (ad) recession. “Marketing spend in the Americas increased sharply in February,” it noted in an update to its monthly Global Marketing Index. Even doldrum European ad markets are experiencing “improving conditions”, it seems.
Let’s hope IPA/Bellwether doesn’t spoil the party with its next quarterly report, which must be coming out quite soon.