The Interpublic Group of Companies (IPG) beat expectations in its latest release of Q3 results.
The American publicly traded advertising company reported that APAC grew by 7.5% organically for the three months ending 30th September 2018, contributing the 6% international organic growth. Year-on-year, APAC revenue for Q3 rose 3.4% and by 3.6% for the nine months ending 30th September 2018.
“These results were driven by strong top- and bottom-line performance in media, as well as growth from our three global creative networks, our marketing services agencies and our digital offerings,” said Michael I. Roth, chairman and CEO of IPG.
Roth expressed confidence that the $2.3 billion acquisition of Acxiom would strengthen IPG’s position in helping its clients succeed in a world where data-driven marketing solutions are core to success. Announced in July, the acquisition represented 8% of IPG’s post-acquisition revenues. As a database company, Acxiom gives advertisers an omnichannel view of the customer, coupled with measurement and precision capabilities in analytics, audience targeting, experience personalization, and data monetization.>
Launched in September, Acxiom’s Unified Data Layer (UDL) represented its peak capabilities and value to IPG in a post-GDPR world. Using cloud architecture, the UDL acts as a middleware for martech and adtech ecosystems and manage identity orchestration.
Translation: A and B get married you can remove duplicate datasets, eliminating the risk of over targeting a shared customer set, an area that costs advertisers billions. Roth was confident that IPG is positioned to achieve net revenue organic growth of 4% to 4.5% and margin expansion of 60 to 70 basis points.
“Combined with our commitment to deleverage our balance sheet and our strong history of capital return programs, including dividend increases, this will allow us to further enhance shareholder value,” he concluded.
To continue growing, the IPG earnings call concluded that the company would drive growth from key strategic initiatives and raise the quality of its agency offerings. This includes creative, media, digital, and marketing. Following the earnings call, IPG’s share price shot up 9.7% on Friday.
Source : https://brandinginasia.com/ipg-asia-pacific-revenues-q3/