"No question that the revival in U.S. advertising is afoot," said Alan Gottesman, an analyst with PaineWebber, New York.
The Omnicom and Interpublic results were the first wave of second-quarter reports by agency holding companies. Reports are due soon from Saatchi & Saatchi, WPP Group and Foote, Cone & Belding Communications.
"Both had results that were in line with expectations, but Interpublic earnings were wrung out of a lower revenue increase than Omnicom enjoyed," said Dean Witter Reynolds analyst James Dougherty.
In the quarter, Omnicom's worldwide revenue was $425.2 million, up 11% from the same period last year; Interpublic revenue rose 2.8% to $498 million.
Interpublic, parent to McCann-Erickson Worldwide, Lowe Group and the newly merged Ammirati & Puris/Lintas, reported second-quarter net income of $54.1 million, an increase of 10.4%.
Both holding companies were losers in IBM Corp.'s massive $500 million global consolidation in the second quarter, but that account loss hasn't been fully registered.
Dean Witter's Mr. Dougherty predicted Omnicom will post an 11.8% increase in third-quarter revenue. Interpublic, whose results will include Ammirati operations for the first time, will be up about 10%, he said.
For the year, Mr. Dougherty predicted Omnicom revenue will rise 9% to $1.65 billion. Interpublic should gain 7.3% to $1.93 billion.