Interpublic

Earlier today we posted the general outlook for IPG; bad. Here are some other key points, more specific to the advertising side, you may be interested in if you work at or compete with an IPG shop (included in the call were Jerry Leshne IPG's SVP Investor Relations; Michael Roth Chairman/CEO and Frank Mergenthaler, EVP, CFO:

— "As was the case in the second quarter, our performance in Q3 continued to reflect the impact that the global recession has been having on demand for advertising and marketing services. Organic revenue was down 14.2%, about the same level as last quarter."

— "...marketing and advertising reductions by clients led to a decrease of 18% in the quarter while our organic revenue decrease was 14.2%. To varying degrees these challenges were evident in all disciplines and markets and nearly all client sectors. As Michael indicated, the impact continues to be greatest technology and telecom and the auto sectors."

— "...we have also begun to see an increase in new business activity, which earlier this year had essentially ground to a halt in many world markets. While this isn't a definitive indicator of an advertising recovery, it certainly is an encouraging sign. We are equally pleased that a review of all major industry pitches over the past year shows that not only are we being included in every significant opportunity out there in which we are not blocked due to client conflict, we are also winning in a broad cross section of our agencies."

— "Another potential driver of an advertising recovery could be the automotive sector, which we have called out as a contributing factor in our organic revenue decreases the past few quarters. Now, as the auto industry emerges from what has been a very troubled period, it could represent significant upside for providers of marketing services with both existing and new clients. The Volkswagen win at Deutsch is a recent example as is the opportunity to win Cadillac and GM and Media Brand's involvement in the global Hyundai media review. There will likely be increased spend if the category next year as well, which we see as a real opportunity."

What do we take away from this? IPG is really excited about VW and the credibility money such a famous brand will being to the company.

More: "IPG's Revenue Down 18% to $1.43 Billion, Worst Report so Far"

Advertising holding company Interpublic Group (IPG), parent to McCann Erickson Worldwide; Deutsch Inc. a Lowe & Partners Company; DraftFCB and many others released its Q3 earnings report today.

"Revenue of $1.43 billion in the third quarter of 2009 was down 18.0% compared with the same period in 2008," the company reported in an earnings statement. "For the first nine months of 2009, revenue was $4.23 billion, down 16.5% compared to the first nine months of last year."

The report, which follows Havas and Omnicom, shows the worst results so far (though neither Havas nor Omni had good results, either). Part of the problem is undoubtedly Campbell Ewald client General Motors — a company that once lead the industry in volume scaled back to a trickle over the last year.

One piece of this news you may have predicted: operating costs were down for the advertising giant. "During the third quarter of 2009, salaries and related expenses were $943.5 million, down 13.7% compared to the same period in 2008." Even with diminished costs, the results are not pretty. Stay tuned for WPP's earnings report tomorrow.

More: "Omnicom Earnings Report: Year Over Outlook is Down"

Here's a little blurb for you — Business Insider put together a listicle of companies that for one reason or another are nearing bankruptcy.

Business Insider:

As one of the largest advertising and marketing companies in the world, IPG was slammed by the global recession.

As the company's CEO said during recent second quarter results, the downturn 'is proving steeper and more lasting than expected'.

Revenues have fallen double digits and the company's exposure to General Motors as its largest client hasn't helped.

BNET's Jim Edwards notes that IPG is hoping for nominal margins in the next year — hardly a nail in the coffin. The company's stock is doing so so, and some seem to think it will continue to rise — but let's not forget IPG's Q2 downshift, which amounted to 20% revenue fall.

And lest you'd forgotten, here's a list of some of IPG's more prominent agencies/firms.

— TM Advertising
— Campbell-Ewald
— Campbell Mithun
— Carmichael Lynch
— Deutsch Inc.
— Draftfcb
— Hill Holliday
— Kaleidoscope Sports and Entertainment
— Lowe Worldwide
— McCann Erickson
— Momentum Worldwide
— Mullen
— MRM Worldwide
— R/GA
— Reprise Media
— The Martin Agency
— Universal McCann
— Weber Shandwick

More: "IPG Reports Q2 Profit Slide"

IPG media buying/planning division Mediabrands is unveiling a new unit dubbed Geomentum, whose main goal it is to figure out how to divvy up approximately $2 billion worth of local advertising among 40,000 zip codes, then city blocks, then specific addresses, and soon enough, YOU.

The New York Times reports that Coldwell Banker and Nestle Waters are amongst those clients that Geomentum could help in local infiltration with crafty methods like analyzing loyalty card data, purchase behavior and shopper surveys in whichever ZIP or even relying on weather forecasts from Al Roker.

Dave Walker, Geomentum's CEO/overlord tells the Times, "There is clearly enough data from a media perspective, from an opt-in perspective, from a loyalty program perspective, that is readily shared on the part of consumers with marketers, that we are now more prepared to take advantage of."

The NYT offers this, um, novel example on the gist of Geomentum:

"A company selling drugstore makeup for Asian women ought to advertise in neighborhoods where lots of Asian women live, and not bother pitching its products in neighborhoods heavy on white men. Once Geomentum narrowed down where Asian women lived, it would then analyze how a billboard in the neighborhood performed, versus a newspaper ad, versus a dollar-off coupon, by writing a long equation that linked store traffic and local product sales with all those variables."

Get the rations ready, the quantocracy may be approaching faster than we think.

Via

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More: "Creatives Vs. Quants: Who'll Come Out on Top?"

Like fellow agency umbrellas Publicis and Omnicom, the economic slump and automotive spending cuts put a hurting on Interpublic Group, which reported a 20% fall in revenue that led to a net income of $27.8 million and a share price of $0.04 in Q2. Compared to same time last year when IPG's take was $88.1 mil and stocks were $0.17 a share, the numbers might make one presume CEO Michael Roth isn't feeling as "magnificent" as he was this past February.

In an earnings call statement this morning though, Roth said, "We have responded to the difficult market conditions with effective cost control across the organization. We also recently took steps to further strengthen our balance sheet, which positions us to successfully move through the current economic turmoil." Cost control in this case included cutbacks in IPG agencies like McCann Erickson, Lowe Worldwide and Universal McCann.

More: "Publicis Q2 Numbers to Reflect GM's Impact"

WPP has lost the bid to promote the 2012 Olympics because the company "was unwilling to split the tender for marketing from the tender for market research, which is being awarded separately[,]" according to a report in the Financial Times. Their sources say the work will go to Interpublic Group's McCann Erickson.

America, Fuck Yeah
Are we allowed to be patriotic again? We contacted a McCann rep as well as one from WPP but neither responded by the time this story was published. Parker and Trib are laughing about how WPP couldn't even get someone to take their services for free...Since of course, agencies have to pay to represent the Olympics. In this case, McCann allegedly dropped 10 million pounds (about $20 million) for the spot. Apparently WPP offered much less.

It's been a bad week for WPP, whose revenue tanked 6%.

Full Story, Image

More: "If WPP Ran a Strip Club..."

Check it out. Interpublic, which includes shops such as Draftfcb, Lowe Worldwide and McCann Erickson, has reported revenue growth of 6.2% and organic revenue growth of 3.8% for 2008. Just like his doppleganger, John Gotti, said when he was released from jail after six years, CEO Michael Roth's response was: "It feels great. It feels magnificent." No, not really, but he did say: "-the latter part of the fourth quarter and the early part of 2009 have begun to show the negative effect that the broader economic situation is having on the marketing-services sector."

So, we all have the look to forward to. Now, George Parker would tell you it's all going to be okay for Interpublic, since the company decided to replace DraftFCB's chief executive, Howard Draft, earlier this month. Draft is now supposedly focused solely on client relationships. You know - where he's real good at wooing and bribing potential clients.

More: No Wukkas: DraftFCB is Hiring