Revenue surge damped by reduced tech spending
IPG’s global revenue slightly decreased in 2023, as clients cut down on their ad spending amid worries fueled by economic and geopolitical turbulences. Despite its flatlining revenue, the company’s net income increased by almost one-fifth, while its profitability also reached a new high. Over the past decade, the company’s total assets also strongly developed, peaking at a net worth of almost 20 billion U.S. dollars in 2021.On top of that, IPG’s profitability reached a new high, with a reported earnings per share (EPS) ratio of 2.39 U.S. dollars per share that same year.
Cutting costs amid faltering markets
With global operations spread over 90 operating units, IPG’s leading networks included companies like FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group, and Marketing Specialists. The United States was IPG’s largest market in 2023, with Asia Pacific and Continental Europe nabbing second and third place. As of the fourth quarter of 2023, IPG enjoyed its highest revenue growth in Latin America, closely followed by Continental Europe, while other markets hovered between marginal growth and slight decline.Among the company’s three reporting segments, one of them – specialized communications and experiential solutions (SC&E) – experienced an expansion, while the two others – media, data, and engagement solutions (MD&E) and integrated advertising and creativity led solutions (IA&C) – both recorded decreases.
IPG’s gains in public relations were offset by its loss of large client accounts such as Verizon, BMW, and Spotify in 2023. Employee numbers worldwide also decreased, as part of a series of cost-cutting efforts both within the holding and in the wider industry.
