Principal-based media buying was once again central to a holding company’s third-quarter earnings report—this time Interpublic Group of Cos.’—marking the second time in five days.
IPG also gave an update on its plans to sell R/GA and Huge, possibly for less than it previously thought the digital agencies were worth.
In its report to shareholders today, CEO Philippe Krakowsky said that IPG will be investing more in building out principal-based media buying services in response to a changing media landscape. Principal-based buying is essentially media agencies buying media and reselling it to clients.
More on the topic: When agencies become media sellers
Krakowsky said that there has been a “shift” in the media market in the past 18 months that has seen many clients “accept and even embrace” principal buying, which he said has had a clear impact on IPG’s business. He said that principal media was a “decisive” factor in large media pitches that IPG didn’t win. (Ad Age previously reported that principal media buying likely played a key role in Amazon’s recent media review—it split its media business between Omnicom Media Group and WPP, though IPG retained some work.)
During IPG’s call, Krakowsky admitted that his competitors are better positioned in this space since they embraced this way of operating sooner.