NEW YORK: Advertisers are beginning to "re-focus on their brands" as economic conditions improve, Michael Roth, chief executive of Interpublic Group, the agency holding company, has said.
The owner of Draftfcb and Lowe Worldwide saw its annual revenues decline to $6.03 billion (€4.45bn; £3.95bn) in 2009 from $6.96bn in 2008, with organic totals off by 10.8% in the same period.
Within this, domestic sales contracted by 10.9%, to $3.37bn, when measured against the previous 12 months, with its international operations also off by 16.4%, to $2.66bn.
Like-for-like figures decreased in all major markets, including slides of 12.6% in Continental Europe, 11.3% in the US, 11% in Asia Pacific, 9.4% in the UK and 3.3% in Latin America.
Operating income came in at $341.3 million for 2009 as a whole, down from $589.7m year-on-year, IPG added in a statement.
Roth argued these results "reflect the impact the recession had on revenue, but also the strong focus on cost discipline brought to bear by our management teams across the organisation."
"Looking forward, economic conditions appear to have stabilised, clients are beginning to re-focus on their brands and the tone of the business is one of cautious optimism," he added.
More specifically, Roth suggested Interpublic's "contemporary, competitive agencies" and on-going cost management initiatives will drive "significantly improved profitability" going forward.
By discipline, the conglomerate's advertising and media operations contributed 58% of revenues last year, with marketing services on 42%.
Its 100 biggest clients delivered 55% of sales, with health and personal care, technology and telecoms and food and beverages the New York-based firm's three largest areas of operation overall.
The owner of Draftfcb and Lowe Worldwide saw its annual revenues decline to $6.03 billion (€4.45bn; £3.95bn) in 2009 from $6.96bn in 2008, with organic totals off by 10.8% in the same period.
Within this, domestic sales contracted by 10.9%, to $3.37bn, when measured against the previous 12 months, with its international operations also off by 16.4%, to $2.66bn.
Like-for-like figures decreased in all major markets, including slides of 12.6% in Continental Europe, 11.3% in the US, 11% in Asia Pacific, 9.4% in the UK and 3.3% in Latin America.
Operating income came in at $341.3 million for 2009 as a whole, down from $589.7m year-on-year, IPG added in a statement.
Roth argued these results "reflect the impact the recession had on revenue, but also the strong focus on cost discipline brought to bear by our management teams across the organisation."
"Looking forward, economic conditions appear to have stabilised, clients are beginning to re-focus on their brands and the tone of the business is one of cautious optimism," he added.
More specifically, Roth suggested Interpublic's "contemporary, competitive agencies" and on-going cost management initiatives will drive "significantly improved profitability" going forward.
By discipline, the conglomerate's advertising and media operations contributed 58% of revenues last year, with marketing services on 42%.
Its 100 biggest clients delivered 55% of sales, with health and personal care, technology and telecoms and food and beverages the New York-based firm's three largest areas of operation overall.
Data sourced from Interpublic Group; additional content by Warc staff
