Interpublic Group of Companies
Encyclopedia
The Interpublic Group of Companies, Inc. (IPG) is one of the "big four" global advertising
holding companies (the others being Omnicom, WPP
and Publicis
). Headquartered in New York City
, it has 41,000 employees and reported full−year revenues of US$6.5 billion for 2010. Its subsidiaries specialize in consumer advertising, interactive marketing, media planning and buying, public relations and other specialized disciplines like sports and event marketing. The company’s current chairman and CEO
is Michael I. Roth.
As an advertising holding company
, Interpublic sets company-wide financial objectives and corporate strategy, directs collaborative inter-agency programs, establishes fiscal management and operational controls, guides personnel policy, conducts investor relations
and initiates, manages and approves mergers and acquisitions
. In addition, it provides limited centralized functional services that offer its companies operational efficiencies, including accounting and finance, marketing information retrieval and analysis, legal services, real estate expertise, travel services, recruitment aid, employee benefits and executive compensation management.
, is now part of Lowe and Partners Worldwide
.
Interpublic Group was incorporated in Delaware
in September 1930 under the name of McCann Erickson
. The company has operated under the Interpublic name since January 1961 when it became the world’s first marketing services management holding company, with McCann-Erickson and McCann-Marschalk as its two subsidiaries.
The company went public in 1971. It goes by ticker ‘IPG’ on the New York Stock Exchange
.
In the mid-2000's, McCann-Erickson, the oldest and largest of Interpublic Group’s subsidiaries became embroiled in an accounting scandal. This scandal uncovered over US$600 million of inflated income from 1997 to 2004 ; moreover, it led to sanctions of US$12 million by the USA’s Securities and Exchange Commission (SEC) , shareholders’ lawsuit against the company , and a precipitous drop in the price per share of stock from $55.54 on December 1, 1999 to $9.65 on December 1, 2005 . Following these events, a new management team was brought in by the Board of Directors
in 2004-2005, and since that time, management has worked to turn the company around.
The advertising industry was severely affected by the global economic downturn in 2009, and the sector saw a decline of 7.5% over the course of the year. Interpublic revenue dropped from US$6.9 billion in 2008 to US$6 billion in 2009.
In 2010, the company began to demonstrate growth again, and revenues increased US$6.5 billion for of the year. In February 2011, the company initiated a quarterly stock dividend program - its first in nine years.
, Draftfcb, and Lowe and Partners Worldwide
– as well as a number of domestic integrated agencies and global media networks.
Interpublic has agencies that serve as marketing specialists across a range of channels. These include corporate branding
(ex. FutureBrand), experiential marketing
(ex. Jack Morton
), sports marketing
(ex. Octagon), public relations
specialists (ex. Weber Shandwick
and GolinHarris
), healthcare communications (ex. McCann Erickson Healthcare) and digital agencies (ex. R/GA
).
In 2008, Interpublic created a management entity called Mediabrands to oversee its two global media networks, Initiative and Universal McCann (now known as UM
), which provide specialized services in media planning and buying, market intelligence and return-on-marketing investment analysis for clients.
Some Interpublic companies include:
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
holding companies (the others being Omnicom, WPP
WPP Group
WPP plc is a global media communications services company with its main management office in London, United Kingdom and its executive office in Dublin, Ireland. It is the world's largest advertising group by revenues, and employs over 150,000 people in 2,400 offices in 107 countries...
and Publicis
Publicis
Publicis Groupe is a French multinational advertising and communications company, headquartered in Paris, France. It is one of the world's three largest advertising holding companies . Its current president is Maurice Lévy. Publicis Groupe S.A...
). Headquartered in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, it has 41,000 employees and reported full−year revenues of US$6.5 billion for 2010. Its subsidiaries specialize in consumer advertising, interactive marketing, media planning and buying, public relations and other specialized disciplines like sports and event marketing. The company’s current chairman and CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
is Michael I. Roth.
As an advertising holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, Interpublic sets company-wide financial objectives and corporate strategy, directs collaborative inter-agency programs, establishes fiscal management and operational controls, guides personnel policy, conducts investor relations
Investor relations
Investor Relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a...
and initiates, manages and approves mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
. In addition, it provides limited centralized functional services that offer its companies operational efficiencies, including accounting and finance, marketing information retrieval and analysis, legal services, real estate expertise, travel services, recruitment aid, employee benefits and executive compensation management.
History
Interpublic Group’s lineage goes back to the 1870s. Foote Cone and Belding, now part of Draftfcb, is one of the United States’ earliest advertising agencies. Alfred W. Erickson and Harrison K. McCann set up shops under their names in 1902 and 1911, respectively. Lintas, founded in 1929 as the in-house advertising agency for Lever BrothersLever Brothers
Lever Brothers was a British manufacturer founded in 1885 by William Hesketh Lever and his brother, James Darcy Lever . The brothers had invested in and promoted a new soap making process invented by chemist William Hough Watson, it was a huge success...
, is now part of Lowe and Partners Worldwide
Lowe Worldwide
Lowe and Partners is an international advertising agency headquartered in London. The Agency is a unit of the Interpublic Group, one of the world's largest advertising agency holding companies...
.
Interpublic Group was incorporated in Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
in September 1930 under the name of McCann Erickson
McCann Erickson
McCann Erickson is a global advertising agency network, with offices in more than 130 countries. McCann is a subsidiary of the Interpublic Group of Companies, one of the four large holding companies in the advertising industry....
. The company has operated under the Interpublic name since January 1961 when it became the world’s first marketing services management holding company, with McCann-Erickson and McCann-Marschalk as its two subsidiaries.
The company went public in 1971. It goes by ticker ‘IPG’ on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
In the mid-2000's, McCann-Erickson, the oldest and largest of Interpublic Group’s subsidiaries became embroiled in an accounting scandal. This scandal uncovered over US$600 million of inflated income from 1997 to 2004 ; moreover, it led to sanctions of US$12 million by the USA’s Securities and Exchange Commission (SEC) , shareholders’ lawsuit against the company , and a precipitous drop in the price per share of stock from $55.54 on December 1, 1999 to $9.65 on December 1, 2005 . Following these events, a new management team was brought in by the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
in 2004-2005, and since that time, management has worked to turn the company around.
The advertising industry was severely affected by the global economic downturn in 2009, and the sector saw a decline of 7.5% over the course of the year. Interpublic revenue dropped from US$6.9 billion in 2008 to US$6 billion in 2009.
In 2010, the company began to demonstrate growth again, and revenues increased US$6.5 billion for of the year. In February 2011, the company initiated a quarterly stock dividend program - its first in nine years.
Operations
Interpublic operates in more than 90 countries worldwide. It has three global brands that provide integrated, large-scale advertising and marketing solutions for clients – McCann WorldgroupMcCann Erickson
McCann Erickson is a global advertising agency network, with offices in more than 130 countries. McCann is a subsidiary of the Interpublic Group of Companies, one of the four large holding companies in the advertising industry....
, Draftfcb, and Lowe and Partners Worldwide
Lowe Worldwide
Lowe and Partners is an international advertising agency headquartered in London. The Agency is a unit of the Interpublic Group, one of the world's largest advertising agency holding companies...
– as well as a number of domestic integrated agencies and global media networks.
Interpublic has agencies that serve as marketing specialists across a range of channels. These include corporate branding
Corporate branding
Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to use corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. Disney, for example, includes the word "Disney" in the name of many of its...
(ex. FutureBrand), experiential marketing
Engagement marketing
Engagement marketing, sometimes called "experiential marketing," "event marketing", "live marketing" or "participation marketing," is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand...
(ex. Jack Morton
Jack Morton Worldwide
Jack Morton Worldwide is a global experiential marketing agency within the Interpublic Group of Companies. The CEO is Josh McCall, and the company’s capabilities include strategy and planning, creative and design, production, fabrication and measurement....
), sports marketing
Sports marketing
Sport marketing is divided into three sectors. The first is the advertising of sport and sports associations such as the Olympics, Spanish Football league and the NFL. The second concerns the use of sporting events, sporting teams and individual athletes to promote various products. The third is...
(ex. Octagon), public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
specialists (ex. Weber Shandwick
Weber Shandwick
Weber Shandwick is a public relations firm.-History:Weber Shandwick is a formation of three previous companies:*The Weber Group - Cambridge, Massachusetts in 1987, leveraging emerging technologies such as the mobile phone and the internet into the world of communications, which made the company a...
and GolinHarris
Golin Harris International
GolinHarris is a holistic communications firm. It was established in 1956. GolinHarris is owned by Interpublic Group of Companies and has 34 wholly owned offices located in the Americas, Asia Pacific, Europe and the Middle East....
), healthcare communications (ex. McCann Erickson Healthcare) and digital agencies (ex. R/GA
R/GA
R/GA Media Group Inc. is an advertising agency headquartered in New York — with additional offices in San Francisco, Chicago, London, São Paulo, Buenos Aires, Singapore, and Stockholm. The agency is part of the Interpublic Group of Companies , one of four global advertising holding companies...
).
In 2008, Interpublic created a management entity called Mediabrands to oversee its two global media networks, Initiative and Universal McCann (now known as UM
UM (company)
UM is the global media company formerly known as Universal McCann. UM's global clients include ABInBev, BASF, Brown-Forman, Burberry, Cathay Pacific, Chrysler, Coca-Cola, ExxonMobil, GM, Johnson & Johnson, L'Oréal, Mastercard, Microsoft, SC Johnson, and Sony...
), which provide specialized services in media planning and buying, market intelligence and return-on-marketing investment analysis for clients.
Some Interpublic companies include:
- accentmarketingAccentmarketingAccentmarketing is a full-service Hispanic marketing communications company consistently ranked in Top 50 U.S. Hispanic Agencies by Ad Age.Accentmarketing has done notable, award-winning work with categories like automotive, U.S...
- Adair-Greene McCann
- Ansible
- Atelier Amuse
- Avrett Free Ginsberg
- The Axis Agency
- Cadreon
- Campbell MithunCampbell MithunCampbell Mithun is an advertising and marketing firm, founded in 1933 by Ralph Campbell and Ray Mithun. It is now part of Interpublic Group of Communication Companies. The core business is consumer advertising through radio, TV, print, digital, mobile and out-of-home...
- Campbell EwaldCampbell-EwaldCampbell Ewald is one of the largest marketing communications agencies in the United States, offering innovative capabilities both traditional and specialized, including advertising; insights and solutions planning; integrated content strategy and development; social, relationship, retail and...
- Carmichael Lynch
- Carmichael Lynch Spong
- Casanova Pendrill
- Cassidy & AssociatesCassidy & AssociatesCassidy & Associates is a government-relations firm based in Washington, D.C., known for pioneering the use of congressional earmarks as a method of obtaining grants for university clients. It was founded in 1975 as Schlossberg-Cassidy Associates by Gerald Cassidy and Kenneth Schlossberg, both...
- Current Lifestyle Marketing
- Dailey
- Deutsch Inc., a Lowe and Partners CompanyDeutsch Inc.Deutsch Inc. is a notable American advertising agency.Founded in 1969 as David Deutsch Associates, Inc., in 1989 the founder's son Donny Deutsch took over the agency and led it through a period of growth and creative accolades, including:...
- DeVries Public Relations
- Draftfcb
- Draftfcb Healthcare
- Fitzgerald + Co
- FutureBrand
- Geomentum
- GolinHarrisGolin Harris InternationalGolinHarris is a holistic communications firm. It was established in 1956. GolinHarris is owned by Interpublic Group of Companies and has 34 wholly owned offices located in the Americas, Asia Pacific, Europe and the Middle East....
- Gotham, Inc.Gotham, Inc.Gotham, Inc. is an advertising agency based in New York City. In Adweeks latest ranking, Gotham is currently $663 million in billings/$62 million in revenue which makes it #39 in the U.S....
- Hacker Group
- Hill HollidayHill HollidayHill, Holliday is an American advertising agency. It is part of the world's third largest advertising conglomerate, IPG.It was founded as Hill, Holliday, Connors, Cosmopulos, Inc., in 1968 in Boston, by founding partners Jack Connors, Jay Hill, Steve Cosmopulos and Alan Holliday...
- HUGEHUGE (digital agency)HUGE is a digital agency providing strategy, marketing, design, and technology services to Fortune 100 companies. The company was founded in 1999 and was named the fastest growing marketing agency in 2009 by Advertising Age. HUGE currently has offices in New York, Los Angeles, London, Stockholm,...
- ICC Lowe
- ID Media
- Initiative
- InnovationsDigital
- IPG Media Lab
- IW Group
- Jack Morton WorldwideJack Morton WorldwideJack Morton Worldwide is a global experiential marketing agency within the Interpublic Group of Companies. The CEO is Josh McCall, and the company’s capabilities include strategy and planning, creative and design, production, fabrication and measurement....
- Jay AdvertisingJay AdvertisingJay Advertising is an integrated advertisingand marketing agency. Listed as a mid-sized agency headquartered in Rochester, New York, Jay Advertising also has offices in New York City, Detroit, and Los Angeles....
- KRC Research
- Lowe and Partners WorldwideLowe WorldwideLowe and Partners is an international advertising agency headquartered in London. The Agency is a unit of the Interpublic Group, one of the world's largest advertising agency holding companies...
- MAGNAGLOBAL
- Marketel
- The Martin AgencyThe Martin AgencyThe Martin Agency is an American advertising agency based in Richmond, Virginia that is now part of Interpublic Group of Companies.*Freecreditreport.com jingle since October 2007 starring Eric Violette.*"The money you could be saving with Geico"-Clients:...
- McCann Erickson WorldwideMcCann EricksonMcCann Erickson is a global advertising agency network, with offices in more than 130 countries. McCann is a subsidiary of the Interpublic Group of Companies, one of the four large holding companies in the advertising industry....
- McCann Healthcare Worldwide
- Momentum WorldwideMomentum WorldwideMomentum Worldwide is a global marketing agency with a network of creative thinkers, brand stewards, marketing leaders with offices in over 50 countries. Headquartered in New York City, is part of The Interpublic Group of Companies, Inc. ....
- MRM WorldwideMRM WorldwideMRM Worldwide is a global digital and direct marketing agency with 62 offices in 40 countries.Based in New York City, it has been ranked among the top 10 digital agencies in the world by size, according to Adweek, MediaPost and RECMA....
- MullenMullen AdvertisingMullen is an American advertising and marketing communications agency based in Boston, Massachusetts. One of its more notable campaigns was creating the Monster.com Super Bowl commercial When I Grow Up. The agency has also earned critical acclaim for its viral film Pac-Man Puppet Show. Mullen is a...
- NAS Recruitment Communications
- NSA Media
- Octagon Worldwide
- ORION Trading
- Outdoor Advertising Group (OAG)
- PMK*BNC
- R/GAR/GAR/GA Media Group Inc. is an advertising agency headquartered in New York — with additional offices in San Francisco, Chicago, London, São Paulo, Buenos Aires, Singapore, and Stockholm. The agency is part of the Interpublic Group of Companies , one of four global advertising holding companies...
- Reprise Media
- RIVET
- Segal Licensing
- Siboney
- Tierney Communications
- TM AdvertisingTM AdvertisingTM Advertising is a full-service agency with offices in Dallas, Seattle, Austin, Houston, New Orleans and Toronto, one of the largest full-service agencies in the southern US. The agency has an interactive group called t:m interactive, which now accounts for about 25% of TM's revenue...
- Translation
- UMUM (company)UM is the global media company formerly known as Universal McCann. UM's global clients include ABInBev, BASF, Brown-Forman, Burberry, Cathay Pacific, Chrysler, Coca-Cola, ExxonMobil, GM, Johnson & Johnson, L'Oréal, Mastercard, Microsoft, SC Johnson, and Sony...
- Wahlstrom Group
- Weber ShandwickWeber ShandwickWeber Shandwick is a public relations firm.-History:Weber Shandwick is a formation of three previous companies:*The Weber Group - Cambridge, Massachusetts in 1987, leveraging emerging technologies such as the mobile phone and the internet into the world of communications, which made the company a...
External links
- Interpublic.com - Interpublic Group corporate homepage