| Revenue ($ in millions) | 2018 | 2017 | % chg |
| Worldwide | $9,714.4 | $9,047.6 | 7.4 |
| U.S. | $5,851.0 | $5,417.3 | 8.0 |
| Non-U.S. | $3,863.4 | $3,630.3 | 6.4 |
| Ticker: IPG (NYSE) |
Asterisk (*) indicates figures are Ad Age estimates.
Fast facts: Interpublic Group of Cos. is the world's fourth-largest agency company based on 2018 total revenue.
Business segments and operations:
Interpublic's largest client sectors in 2018, based on net revenue, were (in alphabetical order) auto and transportation; health care; and tech and telecom.
Interpublic's largest client sectors in 2017, 2016 and 2015, based on revenue, were (in alphabetical order) auto and transportation; health care; and tech and telecom.
Interpublic's largest client accounted for about 4 percent of worldwide net revenue in 2018 and 2017.
Interpublic's largest client accounted for about 4 percent of worldwide revenue in 2017, 2016 and 2015; about 5 percent in 2014 and 2013; and about 4 percent in 2012 and 2011.
Interpublic's 10 largest clients accounted for about 18 percent of worldwide net revenue in 2018; and about 20 percent in 2017.
Interpublic's 10 largest clients accounted for about 20 percent of worldwide revenue in 2017 and 2016; about 19 percent in 2015; about 20 percent in 2014; and about 21 percent in 2013 and 2012.
In its 10-K for year ended December 2018, Interpublic said its top 100 clients "typically constitute approximately 55 percent to 60 percent of our annual consolidated net revenues."
In its 10-Ks for years ended December 2017, December 2016, December 2015 and December 2014, Interpublic said its top 100 clients "typically constitute approximately 55 percent to 60 percent of our annual consolidated revenues."
Overall, Interpublic as of 2015 served 5,000 clients in 100 countries, according to CFO Frank Mergenthaler in a comment made on a February 2015 earnings call.
The company's five largest revenue clients in 2014 were (in alphabetical order): General Motors Co., Johnson & Johnson, L'Oreal, Samsung Electronics and Unilever. Interpublic stopped disclosing its five largest clients effective with its 10-K for year ended December 2015.
The company's five largest revenue clients in 2013 were (in alphabetical order): GM, Johnson & Johnson, L'Oreal, Microsoft Corp. and Unilever.
The company's five largest revenue clients in 2012 were (in alphabetical order): GM, Johnson & Johnson, Microsoft, Unilever and Verizon Communications.
Sales and earnings:
Interpublic appears in Ad Age Agency Report 2019's ranking of the world's 25 largest agency companies based on worldwide total revenue.
New York-based Interpublic reported worldwide total revenue of $9.7 billion in 2018; $9.0 billion in 2017 (restated); $9.1 billion in 2016 (restated); $7.6 billion in 2015; $7.5 billion in 2014; $7.1 billion in 2013; $7.0 billion in 2012 and 2011; $6.5 billion in 2010; $6.0 billion in 2009; and $7.0 billion in 2008.
The company reported worldwide net revenue of $8.0 billion in 2018; $7.5 billion in 2017; and $7.5 billion in 2016.
Effective Jan. 1, 2018, Interpublic adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, and revised its consolidated financial statements for calendar 2017 and 2016.
Effective with that change, Interpublic now reports both total revenue and net revenue.
Net revenue equals total revenue minus billable expenses.
In its 10-K for year ended December 2018, Interpublic said: "Net revenue, primarily consisting of fees, commissions and performance incentives, represents the amount of our gross billings excluding billable expenses charged to a client."
That 10-K explained: "The predominant component of billable expenses are third-party vendor costs incurred for performance obligations where we have determined that we are acting as principal. These third-party expenses are generally billed back to our clients. Billable expenses also includes incidental costs incurred in the performance of our services including airfare, mileage, hotel stays, out-of-town meals and telecommunication charges. We record these billable expenses within total revenue with a corresponding offset to operating expenses."
Deals and strategic moves:
2018 acquisitions:
Interpublic said it completed five acquisitions in 2018 (Acxiom in the "Corporate and other" group; one in the Integrated Agency Networks operating segment; three in the Constituency Management Group operating segment).
In its 10-K for year ended December 2018, Interpublic said:
"These acquisitions include a full-service digital agency based in Brazil, an entertainment marketing and brand licensing agency in the fashion and lifestyle sector based in the U.K., a content-focused social creative agency based in the U.K., a data and technology company based in the U.S."-Acxiom-"and a content production firm based in Israel."
The acquisitions were:
Acxiom: Interpublic Oct. 1, 2018, bought Acxiom LLC (formerly known as Acxiom Marketing Solutions), Acxiom Holdings' marketing solutions business, for $2.3 billion. The 10-K for year ended December 2018 said: "The purpose of the acquisition is to combine the company's media, creative, marketing services and analytics capabilities, global scale and consumer insights, with Acxiom's expertise in identity, data, integrations and data stewardship." (Coinciding with the sale, Acxiom Holdings on Oct. 1, 2018, changed its name to LiveRamp Holdings, reflecting the name of its remaining business.)
That Lot: content-focused social creative agency in the U.K.; CMG (Weber Shandwick).
Cappuccino: full-service digital agency in Brazil; CMG (Weber Shandwick).
ITB: entertainment marketing and brand licensing agency in the U.K.; CMG (Octagon).
Saloona: content production firm in Israel; IAN (McCann).
2017 acquisitions:
Interpublic said it completed 10 acquisitions in 2017 (eight in the Integrated Agency Networks operating segment and two in the Constituency Management Group operating segment).
In its 10-K for year ended December 2017, Interpublic said:
"These acquisitions included a digital marketing agency based in the U.S., a data science and business intelligence firm based in the U.S. with operations in China, an advertising and consulting company based in Indonesia, a strategic communications agency based in the U.K., an independent creative agency based in the U.K., a retail branding and design firm based in the U.S., a content creation and marketing agency based in the Netherlands, an independent media agency and digital consultancy based in Finland, and an integrated marketing communications agency based in Canada."
The acquisitions included:
Chute Gerdeman: retail store design firm in Columbus, Ohio; IAN (FCB RED). Resolute Digital: data-driven digital marketing and technology agency in New York; CMG (Weber Shandwick).
Salt: strategic corporate and consumer communications agency in London; IAN (Mullen Lowe London).
Virta: full-service media agency specializing in programmatic and audience insights and based in Finland; IAN (IPG Mediabrands).
101 London: full-service creative agency in London; IAN (Mullen Lowe London).
Yune: social content marketing firm in the Netherlands; IAN (IPG Mediabrands).
Marketel: Canadian agency venture in which McCann previously held a minority stake and now owns 100 percent; IAN (McCann).
Bomoda: consumer intelligence firm with operations in China, merged into Weber Shandwick's MediaCo operations; CMG (Weber Shandwick).
Through R/GA Ventures, Interpublic in 2017 made strategic investments in 16 companies at the MarTech Venture Studio and the Media Tech Venture Studio.
2016 acquisitions:
Interpublic said it completed 10 acquisitions in 2016 (three in the Integrated Agency Networks operating segment and seven in the Constituency Management Group operating segment).
In its 10-K for year ended December 2016, Interpublic said:
"The most significant acquisitions include a product and service design consultancy based in the U.S., an integrated health care marketing communications agency based in the U.S., a content creation and digital agency with offices in the U.S. and the U.K., a mobile consultancy and application development agency based in the U.K., a full-service public relations and digital agency based in China, a search engine optimization and digital content marketing agency based in the U.K., and a mobile focused digital agency based in the U.K."
The acquisitions included:
Flipside: digital and mobile agency in U.K., August 2016; CMG (Weber Shandwick).
Sticky Eyes: mobile and search agency in U.K., July 2016; IAN (IPG Mediabrands).
Milkmoney: production venture in Australia, July 2016; CMG (Octagon).
Speck Design: branding and design firm in Palo Alto, Calif., April 2016; CMG (FutureBrand).
Magic Group: PR agency in China with 100 employees, March 2016, rebranded as GolinMagic; CMG (Golin).
Brooklyn Brothers: ad agency in New York, February 2016; CMG (Golin).
Mubaloo: U.K. mobile ad developer, January 2016; IAN (IPG Mediabrands). ReviveHealth: U.S. health care marketing company, January 2016; CMG (Weber Shandwick).
2015 acquisitions:
Interpublic in 2015 completed five strategic acquisitions. All acquired agencies were integrated into global networks or existing agencies. The most significant acquisitions included a full-service digital agency in the U.K., a group of creative marketing agencies based in Russia and a media planning and buying agency in Canada.
The acquisitions included:
McCann Russia, FCB Russia and MullenLowe Russia: ad agencies in Russia, acquired in December 2015 from ADV, a Russia-based agency group and Interpublic's longtime partner; IAN (McCann Worldgroup, FCB, MullenLowe Group).
Media Experts: media planning and buying agency in Canada with 150 employees, October 2015; IAN (IPG Mediabrands).
Hugo & Cat: digital agency based in London, August 2015; CMG (FutureBrand).
2014 acquisitions:
Interpublic in 2014 completed nine acquisitions, six in the Integrated Agency Networks segment and three in the Constituency Management Group segment. All acquired agencies were integrated into global networks or existing agencies. The most significant acquisitions included a global full-service digital agency (Profero), a U.S. digital agency (Genuine Interactive) and a search-marketing agency in the Netherlands (Traffic4U).
The acquisitions were:
Optaros: e-commerce services firm in Boston, Nov. 26, 2014; IAN (McCann Worldgroup [MRM//McCann]).
Promoqube: Turkey, Oct. 17, 2014; IAN (IPG Mediabrands).
Traffic4U: Netherlands, Aug. 7, 2014; IAN (IPG Mediabrands).
GGH: Germany, July 16, 2014; IAN (Lowe and Partners).
Genuine Interactive: digital, mobile-marketing and social-media agency in Boston, April 30, 2014; CMG (division of Jack Morton Worldwide).
Prime: 130-employee PR agency in Sweden, April 30, 2014; CMG (Weber Shandwick).
Halesway: U.K., March 7, 2014; IAN (FCB Health).
Black Sheep Social Media Group: U.S., Jan. 13, 2014; CMG (Octagon/Rogers & Cowan).
Profero: U.K., U.S., Asia, Jan. 24, 2014; IAN (Lowe and Partners).
Acquisitions in 2013:
Interpublic completed 11 acquisitions in 2013, nine in the Integrated Agency Networks segment and two in the Constituency Management Group segment. Interpublic integrated all the acquisitions into its global agency networks or existing agencies.
The acquisitions were:Inferno: U.K, December 2013; IAN (FCB).
E/OU: Brazil, November 2013; IAN (McCann Worldgroup).
UXUS: U.S./Netherlands, October 2013; CMG (FutureBrand).
Corporate Voice: India, April 2013; CMG.
Cross Colours: South Africa, April 2013; IAN (Lowe and Partners).
End to End: India, March 2013; IAN (McCann Worldgroup).
Interactive Avenues: India, March 2013; IAN (IPG Mediabrands).
MMS: Italy, March 2013; IAN (McCann Worldgroup).
Preview Propaganda: Brazil, March 2013; IAN (McCann Worldgroup).
Mnet: Australia, January 2013; IAN (McCann Worldgroup).
Sprung: U.S., January 2013; IAN (IPG Mediabrands).
The company in January 2013 made a minority investment in OKRP, a Chicago startup ad agency.
Acquisitions in 2012:
Interpublic completed 12 acquisitions in 2012. Interpublic integrated all the acquisitions into its global agency networks or existing agencies. The most significant acquisitions included a health care market research and consulting agency and a search marketing agency in the United Kingdom; and, in the U.S., a digital health care-marketing specialist and a designer of in-store shopping experiences.
Acquisitions in 2011:
Interpublic completed 22 acquisitions in 2011, including purchases of controlling interests in previously unconsolidated subsidiaries. The most significant acquisitions included full-service creative agencies in Australia; a public relations firm in Brazil; digital- and direct marketing agencies in the United Kingdom; a health care communications firm in Germany; and a social-media agency in the U.S.
Acquisitions in 2010:
Interpublic completed five acquisitions in 2010.
Divestitures:
Interpublic's 10-K for year ended December 2018 said:
"During the past few years, we have acquired companies that we believe will enhance our offerings and disposed of businesses that are not consistent with our strategic plan."
That 10-K said certain "businesses held for sale as of year end [2018] primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months."
Interpublic sold no units in 2018.
Interpublic in 2017 sold four U.S. agencies: Cassidy and Associates, Dailey, HackerAgency and TM Advertising. Investments and minority holdings:
Interpublic's investments and minority holdings as of April 2018 included:
IW Group (U.S. Asian-American agency, 49 percent). Management and employees:
Interpublic worldwide (and U.S.) employment at year end:
2018: 54,000 (22,500 in U.S.).
2017: 50,200 (20,100 in U.S.).
2016: 49,800 (19,900 in U.S.).
2015: 49,200 (19,900 in U.S.).
2014: 47,400 (19,200 in U.S.).
2013: 45,400 (18,400 in U.S.).
2012: 43,300 (17,600 in U.S.).
2011: 42,000 (18,000 in U.S.).
2010: 41,000 (18,000 in U.S.).
2009: 40,000 (17,000 in U.S.).
2008: 45,000 (19,000 in U.S.).
2007: 43,000 (19,000 in U.S.).
2006: 42,000 (18,000 in U.S.).
2005: 43,000 (18,000 in U.S.).
Stock:
Publicis Groupe sold its 1.13 percent stake in Interpublic in December 2013 (specifically, between Dec. 9 and Dec. 23, 2013). The Interpublic stock was a holdover from an investment Publicis made in FCB in 1988 as part of a later-aborted global alliance with FCB; Interpublic bought True North Communications (parent of FCB) in 2001.
Publicis' historic carrying price for Interpublic shares was $3.87 a share. The average listed share price between Dec. 9 and Dec. 23, 2013, was $16.74. Publicis scored a capital gain of 47 million euros ($64.5 million) on the sale.
History:
Interpublic Group of Cos. was incorporated under the name McCann-Erickson Inc. in September 1930 with the merger of ad agencies founded by Harrison K. McCann in 1911 and A.W. Erickson in 1902. The company adopted the Interpublic name in January 1961.
Top executive: Michael I. Roth, chairman and CEO
Headquarters: Interpublic Group of Cos./909 Third Ave., New York, N.Y. 10022/Phone: (212) 704-1200
Facebook: https://www.facebook.com/interpublicgroup
Twitter: @InterpublicIPG
LinkedIn: https://www.linkedin.com/company/ipg
https://www.interpublic.com
