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8-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 8-K on 10/30/2017
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goes back to the comments Michael made earlier. It is somewhat discretionary in the short term, but what we do works. It’s been a leading driver of growth for us for the past five years. We’ve got the most awarded PR agencies in the industry, so we’re just working our clients hard and trying to provide value, and we’re confident that the growth will come back when some of this caution starts to dissipate.

Mr. Roth:
Yes. And some of the government spending, it’s affected Weber Shandwick as well. And that you’ve read about, particularly in the healthcare side, and that was, that’s a perfect example of project-based businesses that are nice-sized businesses that for whatever reason, whether it be government pullback or the president or whatever you want to say, ended up and putting it and taking it off the shelf and not triggering it. So we saw an impact of that, particularly at Weber Shandwick.

Mr. Stabler:
So it sounds like PR was one of the primary drivers of weakness in CMG?

Mr. Roth:
Yes.

Mr. Stabler:
Okay, then one quick follow-up -

Mr. Roth:
By the way, let me just add, on the other side of that, Octagon had a very solid quarter, and they are not - although they’re part of CMG, they are performing very well.

Mr. Stabler:
Great. One quick follow-up. Just on the AOR concept. Just wondering whether you think, or whether you’re seeing, the appetite of clients to strike AOR-type relationships is changing in any way. If the overall industry is going more project-related, are you seeing an increase in the number of clients who want to engage your agencies on shorter-term contracts? And is that impacting your ability to forecast the business at all? Thanks so much.

Mr. Roth:
That’s, as usual, that’s a great question. There’s no question that there are clients out there that are viewing the AOR relationship a little differently and tend to be more project-based business than historically. The other side of that coin, we continue to have, particularly at McCann, very strong long-term relationships with large multinationals that require an AOR contract because of the breadth of offerings within McCann servicing those clients on a global basis. So those clients, obviously, the AOR relationship is critical, and we see that continuing. There may be some pullback in spending here and there, but the relationship with those clients, they’re 75 years old, and they continue to be very embedded into what the businesses are, But there are some projects within that that affect us.

What’s interesting is we are seeing - and it’s a good chance for me to talk about this open architecture - call it whatever you will - we use open architecture because we feel that by bringing all the different resources within IPG and not restructuring the entire company is a much more efficient and better way for us to meet the needs of the clients as they look to us for more services. That’s the opportunity. I have to tell you, the last few pitches that we’ve received, even when they start out as media RFPs, they’re looking for open-architecture solutions, where we can bring and put as a seat at the table other resources within IPG to help those clients. That’s where I think the opportunity is with respect to what our business is

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