The Interpublic Group of Companies explained

The Interpublic Group of Companies, Inc.
Type:	Public
Predecessor:	McCann-Erickson, Inc.
Key People:	Philippe Krakowsky (CEO)
Industry:	Advertising agency
Revenue:	^[1]
Revenue Year:	2023
Income Year:	2023
Net Income Year:	2023
Assets Year:	2023
Equity Year:	2023
Num Employees:	57,400
Num Employees Year:	2023
Foundation:	(as McCann Erickson) (as Interpublic Group)
Location:	909 Third Avenue New York City, New York 10022 United States

The Interpublic Group of Companies, Inc. (IPG) is an American publicly traded advertising company. The company consists of five major networks: FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group and Marketing Specialists, as well as several independent specialty agencies in the areas of public relations, sports marketing, talent representation and healthcare.^[2] It is one of the "Big Four" agency companies, alongside WPP, Publicis, and Omnicom.^[3] Phillippe Krakowsky became the company's CEO on January 1, 2021.

History

On October 2, 1930, IPG was founded in New York City as McCann-Erickson, when H.K. McCann Co. (founded in 1911) and Erickson Co. (founded in 1902) merged.^[4] At the time, it was the largest agency in the ad industry.^[5]

In 1960, McCann was restructured into four operating units, each reporting to a new holding company. The four units were McCann-Erickson Advertising (U.S.), McCann-Erickson Corp. (international), McCann-Marschalk, and Communications Affiliates.^[5] In January 1961, McCann was renamed Interpublic Group (IPG) and created the first marketing services management holding company with McCann-Erickson as a subsidiary.^[6]

In late 1973, as clients began focusing more on international strategies, McCann-Erickson combined its domestic and international branches into a single worldwide agency under IPG.^[5] In 1997, the McCann-Erickson World Group was formed with several of IPG's different units.^[7]

In December 2000, Deutsch Inc, reported by the New York Times at the time to be the largest and last big independent agency, was acquired by IPG to be an autonomous unit.^[8] In 2001, IPG acquired True North Communications, the holding company for Foote Cone & Belding.^{[9] [10]}

In 2003, IPG agreed to pay $115 million to settle class action lawsuits brought by its shareholders. The shareholders had sued Interpublic after accounting irregularities led to restatements of financial results, causing the company's stock to fall.^[11]

In March 2004, IPG renamed its McCann-Erickson World Group as McCann Worldgroup.^[12]

On September 15, 2005, IPG announced plans to restate earnings for fiscal 2000 through 2004, due to problems in accounting for revenue, acquisitions and lease expenses.^[13] On March 22, 2006, IPG posted a loss for the fourth quarter and restated results for the first three quarters of 2005, which reduced revenue by $14.1 million. It also announced its controller and chief accounting officer was leaving the company.^[14]

IPG disposed of 51 businesses in 2005 and 2006, primarily outside the U.S.; the company said it exited 23 "loss-making international affiliates" in 2006.^[15] In April 2007, IPG announced it had agreed to buy Reprise Media, a search engine marketing firm.^[16] In July of that same year, FCB-Ulka Advertising Private Limited, a subsidiary of IPG, was renamed DRAFTFCB+Ulka Advertising Pvt. Ltd.^[17]

In July 2008, IPG formed a media buying and planning unit called Mediabrands (later IPG Mediabrands).^[18] In March 2014, IPG draftfcb was renamed as IPG's international network FCB.^[19] In January 2016, the merger of IPG groups Mullen in the US and Lowe and Partners worldwide was renamed as MullenLowe Group.^[20] In July 2018, IPG announced they were buying database marketing company Acxiom's Marketing Solutions business for $USD2.3 billion.^[21]

In October 2020, the company announced that Phillippe Krakowsky would be succeeding Michael I. Roth as the company's CEO on January 1, 2021.^[22] On January 1, 2021, Krakowsky became the company's new CEO.^[23]

IPG handles the accounts of many major oil companies.^[24] Asked by Reuters in 2020 to disclose their client list, IPG refused to do so.

Companies

IPG consists of dozens of businesses organized into six groups. There are three global networks: Foote, Cone & Belding (FCB); McCann Worldgroup; and MullenLowe; a media services company, IPG Mediabrands; a marketing services group, Marketing Specialists; and several independent domestic digital agencies.^[25]

FCB

FCB is one of IPG's three global networks. Its companies include the following:

• FCB, the former Draftfcb, formed by a merger between Draft Worldwide and Foote, Cone & Belding Worldwide.
• FCB Health, a healthcare-focused agency formed by combining three healthcare agencies: ICC, Trio and Pace.^[26]
• HelloComputer, a Cape Town-based digital agency, which merged with Mesh Interactive in 2012.^[27]
• New Honor Society, a St. Louis, Missouri-based marketing agency, formerly known as Rivet/US, itself formed with a merger between marketing agency Zipatoni Company and Toronto-based FCB Direct.^[28]

IPG Mediabrands

The IPG Mediabrands group is IPG's data management and media buying arm. Its companies include the following:

• Ensemble Worldwide, a creative agency set up as part of IPG Mediabrands' Malaysia network.^[29]
• Healix, an agency focused on global life science and healthcare brands.^[30]
• Identity, formerly Diverse Communications, is an Australia-based agency focused on multicultural communications.^[31]
• ID Media is IPG Mediabrands' direct response planning and buying agency.^[32]
• Initiative, a media buying network which includes the former network BPN.^[33]
• IPG Media Lab, a digital marketing agency that studies digital technology for advertising programs, platforms and products.^[34]
• MAGNA, IPG Mediabrands' intelligence, investment, and innovation unit. The group tracks and measures the pricing and savings of the agency's media investments.^[35]
• Matterkind (previously known as Cadreon), previously part of IPG Mediabrands, now sits as part of IPG's suite of tech companies (consisting of Kinesso, Acxiom and Matterkind). Matterkind is IPG's ad-tech network which is involved in programmatic advertising.^[36]
• Media Experts, a Canadian subsidiary that provides advertising media services for businesses.^[37]
• Orion, IPG Mediabrands' barter agency, helps brands sell unsold products in exchange for advertising.^[38] Orion's holding company includes the agencies NSA Media, OAG, Rapport and Wahlstrom.^[39]
• Promoqube, a Turkish social media agency.^[40]
• Reprise, IPG Mediabrands' global performance marketing agency, was formed by combining mobile agency Ansible and social agency Society with search agency Reprise in 2018.^[41]
• Stickyeyes, a digital marketing company acquired by IPG Mediabrands in 2016, provides creative search, content marketing and video production.^[42]
• UM, also known as Universal McCann, is a global advertising and media agency, which includes agency J3.^[33]

Marketing Specialists

IPG's Marketing Specialists group offers marketing services across a range of disciplines. Its companies include the following:

• Current Global, a midsized communications agency formed when Chicago-based Current Marketing merged with multimedia production house Creation.^{[43] [44]}
• DeVries Global, a media communications agency.^[45]
• dna Communications, a healthcare agency.^[46]
• FutureBrand, a branding agency, which includes Amsterdam-based FutureBrand UXUS, formerly UXUS, and design and innovation company Hugo & Cat.^{[47] [48]}
• Golin, an agency specializing in public relations, digital marketing and content development.^[49]
• Jack Morton Worldwide, a brand experience agency.
• Octagon Worldwide, which includes Rogers & Cowan, a global marketing and public relations agency.
• Weber Shandwick, a public relations firm.

McCann Worldgroup

Formed in 1997, McCann Worldgroup is IPG's global marketing services organization, reportedly with over 24,000 employees in over 100 companies as of November 2017.^[50] Its companies include the following:

• Avrett Free Ginsberg, stylized as AFG&, a full service advertising agency.^[51]
• Commonwealth//McCann, a Detroit-based advertising agency.^[52]
• Casanova//McCann, formerly Casanova Pendrill, a Hispanic-focused advertising agency based in Orange County, California.^[53]
• Craft, an international adaption and production network of agencies.^[54]
• Fitzco, or Fitzgerald & Co., is an Atlanta-based agency.^[55]
• McCann (formerly McCann Erickson), an American global advertising agency network.^[56]
• McCann Health, a healthcare-focused agency.^[57]
• MCN FP7, or Middle Eastern Communication Network, is an agency with 60 offices in 14 countries and clients in the Middle East and North Africa.^[58]
• Momentum Worldwide, a New York City-based experiential marketing agency, which includes shopper marketing agency ChaseDesign and its subsidiary 10RedDesign.^{[59] [60]}
• MRM, a direct and digital marketing agency based in New York City.
• PMK*BMC, a Los Angeles-based entertainment and pop culture-focused agency that connects celebrities with brands seeking talent for content collaboration.^[61]
• Performance Art, a data-led creative/CRM agency.^[62]

MullenLowe Group

See main article: MullenLowe Group.

MullenLowe Group is one of IPG's three communications networks, formed in 2015 by the merger of IPG's U.S. agency Mullen with IPG's global creative network Lowe and Partners.^[63] It consists of the following components:

• MullenLowe, a marketing communications network focused on brand strategy, communications planning and through-the-line advertising, and which includes US network MullenLowe U.S. and Indian agency MullenLowe Lintas Group.^[64]
• MullenLowe Comms, which incorporates various PR divisions, including MullenLowe salt, a strategic communications agency with offices in London and Singapore,^[65] and MullenLowe PR, a US-based public relations agency.^[66]
• Mediahub, a global media planning and buying agency headquartered in New York City.^[67]
• MullenLowe Profero, a customer experience and digital marketing agency, which as of April 2020, also includes the former MullenLowe Open agency, which specialized in customer relationship management (CRM), shopper and experiential campaigns.^{[68] [69]}

Independents

IPG also has several independent marketing agencies.

• Acxiom, a database marketing company.^[70]
• Big Family Table, a creative agency.^[71]
• Campbell Ewald, an advertising and marketing communications agency.
• Carmichael Lynch, a Minneapolis, Minnesota-based creative agency.^[72]
• Deutsch LA and Deutsch NY (formerly Deutsch Inc.), Los Angeles and NY City-based marketing communications agencies.^[73]
• Elephant, a Brooklyn, NY & SF based digital marketing agency.^[74]
• HUGE, a Brooklyn, NY-based digital marketing agency.
• IW Group, formerly Imada Wong Communications Group, is a West Hollywood, California-based agency.^[75]
• The Martin Agency, a Richmond, Virginia-based advertising agency.
• RafterOne, a New Hampshire-based Salesforce Implementation Partner.^[76]
• R/GA, a New York City-based marketing and advertising agency.
• Tierney, a Philadelphia, Pennsylvania-based agency.^[77]

Further reading

• Book: International Directory of Company Histories . 1988 . St. James Press . 0-912289-10-4 . 1 . 16–18 . Interpublic Group, Inc. .

External links

• Official website
• Official website

Notes and References

1. Web site: 2023 Annual Report (Form 10-K) . February 20, 2024 . U.S. Securities and Exchange Commission . May 22, 2024.
2. Web site: Agency Family Trees 2013: Interpublic Group -- IPG . August 16, 2013.
3. News: Advertising's Big Four: It's Their World Now. The New York Times. The New York Times. March 31, 2002.
4. Web site: Did You Notice That McCann Quietly Dropped 'Erickson' From Its Name?. Business Insider . 2012-10-23. 2019-01-15.
5. Web site: McCann Erickson Worldwide . adage.com . 2003-09-15 . 2019-01-15.
6. Web site: Interpublic Group of Cos.: 2007 Year in Review . adage.com . 2008-05-05 . 2019-01-15.
7. Web site: A sweeping reorganization at McCann-Erickson seeks to highlight marketing services. . . 1997-09-22 . 2019-01-18.
8. Web site: A long courtship ends as Deutsch, the last of the big independents, says yes to Interpublic. . . 2000-12-01 . 2019-01-18.
9. Web site: Interpublic to Acquire True North . adage.com . 2001-03-19 . 2019-01-04.
10. Web site: 2003-09-15. Interpublic Group of Cos.. 2019-01-15. adage.com.
11. Web site: Company news: Interpublic agrees to settle shareholder lawsuits . . 2003-12-06 . 2019-01-16.
12. Web site: Interpublic's McCann WorldGroup unveils new identity . campaignlive.com . 2004-03-12 . 2019-01-18.
13. Web site: Interpublic Group Retraces Its Accounting Missteps. The New York Times. 2005-09-16. 2019-01-15.
14. Web site: More Setbacks at Interpublic. The New York Times. 2006-03-23. 2019-01-15.
15. News: Johnson. Bradley. No. 3 Interpublic Group of Cos.. November 24, 2015. Adage. April 26, 2007.
16. Web site: Interpublic Acquires Best-in-Class Search Marketing Agency.
17. Web site: Company Overview of DRAFTFCB+Ulka Advertising Pvt. Ltd.. https://web.archive.org/web/20110528230910/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22583389 . dead . May 28, 2011 . Bloomberg Businessweek. December 5, 2013.
18. Web site: IPG Forms Mediabrands; UM's Brien Named CEO; Omnicom, Clear Channel Join . gigaom.com . 2008-07-09 . 2019-01-18.
19. Web site: DraftFCB Officially Changes Name to FCB . adage.com . 2014-03-10 . 2019-01-18.
20. Web site: MullenLowe Group launches new global identity; Lowe Profero rebrands to MullenLowe Profero . campaignbrief.com . 2016-01-25 . 2019-01-18.
21. Web site: IPG Confirms $2.3 Billion Deal to Acquire Data Marketing Company Acxiom . adweek.com . 2018-07-02 . 2018-08-29.
22. Web site: IPG Names Philippe Krakowsky as CEO . Wall Street Journal . 2020-10-21 . 2021-01-27.
23. Web site: IPG CEO Philippe Krakowsky on Disruption, Data and Privacy . AdWeek . 2021-01-27 . 2021-01-27.
24. News: Dang. Andrew R. C. Marshall, Valerie Volcovici, Sheila. 2020. Climate change turns up the heat on ad industry. en. Reuters. 2021-07-12.
25. Web site: 10-K (Interpublic Group of Companies, Inc) (February 25, 2019) . investors.interpublic.com . 2019-02-25. 2019-02-28.
26. Web site: IPG brings ICC agencies into FCB Health . pharmalive.com . 2015-03-05 . 2019-01-15.
27. Web site: NYSE-listed company snaps up Cape Town digital agency HelloComputer . ventureburn.com . 2012-04-05 . 2019-01-15.
28. Web site: Zipatoni's giant tomato comes down as agency rebrands . bizjournals.com . 2014-09-24 . 2019-01-15.
29. Web site: IPG Mediabrands' Ad-Tech Unit Ensemble takes out Agency of the Year at Effie Awards Malaysia 2018 for third year running . campaignbriefasia.com . 2018-12-28 . 2019-01-17.
30. Web site: IPG launches Healix to service healthcare clients . mandmglobal.com . 2016-10-07 . 2019-01-17.
31. Web site: IPG Mediabrands Launches Multicultural Audience-Focused Shop . bandt.com.au . 2014-10-30 . 2019-01-17.
32. Web site: Company Overview of ID Media, Inc. . bloomberg.com . 2019-01-17.
33. Web site: IPG Mediabrands to Fold BPN Worldwide into Initiative . adweek.com . 2017-01-06 . 2019-01-17.
34. Web site: IPG Media Lab Creates Inroads with Media . digiday.com . 2013-08-21 . 2019-01-17.
35. Web site: IPG Mediabrands Hires Former Omnicom Executive As Magna's First Global President . adweek.com . 2018-07-31 . 2019-01-17.
36. Web site: IPG launches Matterkind, retires Cadreon brand . adnews.com.au . 2020-05-06 . 2020-06-05.
37. Web site: IPG Mediabrands acquires Media Experts. marketingmag.ca . 2015-10-28 . 2019-01-17.
38. Web site: With focus on transparency, barter agencies get more scrutiny . digiday.com . 2016-10-03 . 2019-01-17.
39. Web site: Trendsetters: Brian McMahon of IPG Mediabrands' ORION Holdings Demonstrates the Advantage of Thinking Globally . internationalistmagazine.com . 2013-02-19 . 2019-01-17.
40. Web site: IPG Mediabrands acquires Turkish social media agency . marketing-interactive.com . 2014-09-18 . 2019-01-17.
41. Web site: IPG Mediabrands Melds Three Specialist Shops – Reprise, Ansible And Society – Into A Full-Service Performance Agency . adexchanger.com . 2018-05-21 . 2019-01-17.
42. Web site: Stickyeyes has sights set on new era after takeover. yorkshirepost.co.uk . 2016-09-08 . 2019-07-01.
43. Web site: Current Marketing Adds SVPs to Its San Francisco and Chicago Rosters . adweek.com . 2016-02-29 . 2019-01-15.
44. Web site: Interpubloi Group combines Current marketing, Creation . prweek.com . 2019-04-04 . 2019-05-14.
45. Web site: SharkNinja Hands US PR Duties To DeVries Global . holmesreport.com . 2018-09-23 . 2019-01-15.
46. Web site: Healthcare PR Firms Flourish Despite Pharma Turbulence . holmesreport.com . 2018-05-04 . 2019-01-16.
47. Web site: New name for Futurebrand UXUS . retaildesignworld.com . 2018-01-04 . 2019-01-16.
48. Web site: IPG's FutureBrand Buys Digital Agency Hugo & Cat . mediapost.com . 2015-08-06 . 2019-04-12.
49. Web site: Golin Calls on Agencies to Support Female Creatives in New #MeToo Push 'Have Her Back' . adweek.com . 2018-03-16 . 2019-01-15.
50. Web site: Pursuing Innovation While Maintaining A Vision: Harris Diamond of McCann Worldgroup. businesstoday.org . 2017-11-26 . 2019-01-17.
51. Web site: AFG& : advertising & marketing assignments. adbrands.net . 2019-01-16.
52. Web site: Commonwealth/McCann hires Riddle as new chief creative officer. crainsdetroit.com . 2018-11-02 . 2019-01-17.
53. Web site: Casanova McCann (US). adbrands.net . 2019-01-17.
54. Web site: McCann launches Craft Worldwide as a global adaption + production unit with 2 offices in OZ - McCann Melbourne MD Simon Burett to lead units. campaignbrief.com . 2012-12-05 . 2019-01-17.
55. Web site: McCann's Fitzgerald & Co Wins Checkers And Rally's Strategic, Creative, And Digital Duties. mediapost.com . 2016-01-27 . 2019-01-17.
56. Web site: Fast Chat: McCann Worldgroup's Luca Lindner. adweek.com . 2013-02-28 . 2019-01-17.
57. Web site: McCann Health Brazil's 'Valuable Heritage" Campaign Wins at ACT Responsible Tribute at Cannes 2018 . lbbonline.com . 2018-06-22 . 2019-01-17.
58. Web site: IPG gains majority stake in Middle East Communication Network. prweek.com . 2008-07-29 . 2019-01-17.
59. Web site: Momentum Worldwide creates new experience role, appoints director. thedrum.com . 2016-06-02 . 2019-01-16.
60. Web site: IPG's Momentum Acquires ChaseDesign, Ups Shopper Marketing Reach. mediapost.com . 2012-08-08 . 2019-01-16.
61. Web site: How Hollywood's Unlikely PMK-BNC Merger Has Defied the Odds. adage.com . 2014-04-30 . 2019-01-17.
62. Inc. (The) . Interpublic Group of Companies . 2021-07-07 . IPG Launches Performance Art, a Data-Led Creative/CRM Agency . 2022-04-22 . GlobeNewswire News Room . en.
63. Web site: MullenLowe Group launches new global identity; Lowe Profero rebrands to MullenLowe Profero. campaignbrief.com . 2018-05-18 . 2018-12-19.
64. Web site: MullenLowe to bring Mediahub to India. economictimes.indiatimes.com . 2018-05-18 . 2019-03-28.
65. News: MullenLowe pinches Salt Communications for 'intellectual strategic horsepower'. The Drum. 2017-07-13. 2019-04-02.
66. Web site: Agency Brief: Chili's, Cheese and Birth Certificate Backpacks . adage.com . 2017-08-11 . 2019-03-28.
67. Web site: MullenLowe Mediahub Went From Underdog to Industry Heavyweight in 2017 . adweek.com . 2018-02-18 . 2019-03-28.
68. Web site: MullenLowe merges Profero and Open in UK . Campaign Live . July 7, 2020 . March 1, 2021.
69. Web site: IPG's MullenLowe Introduces Network Structure and Rebranding . adage.com . 2016-01-25 . 2019-05-02.
70. Web site: IPG Confirms $2.3 Billion Deal to Acquire Data Marketing Company Acxiom . adweek.com . 2018-07-02 . 2019-01-16.
71. Web site: Hulu ruins TV for you in its celebrity-filled Emmys ad . adage.com . 2018-09-18 . 2019-01-16.
72. Web site: The Media Business: Advertising; Mergers, munch by munch: Interpublic Group agrees to buy the feisty Carmichael Lynch. . . 1998-02-03 . 2019-01-16.
73. Web site: Deutsch Splits New York and Los Angeles Offices Into Separate Agencies . Adweek . October 29, 2020 . June 17, 2021.
74. Web site: Elephant Parts With Staff in New York Following Goldman Sachs Review. adweek.it. en-US. 2019-04-02. 2019-02-27.
75. Web site: Company Overview of IW Group, Inc. . bloomberg.com . 2019-01-16.
76. IPG Acquires Premier Salesforce Solution Provider RafterOne . globenewswire.com . 2022-10-03 . 2022-10-03.
77. Web site: IPG's Tierney Adds a Pair of SVP/Creative Directors . adweek.com . 2016-04-20. 2019-01-16.