Interpublic Group reported earnings growth today, with third quarter revenue totaling $1.56 billion compared to $1.43 billion for Q3 2009. Organic revenue increased 9.4 percent versus the previous year, with organic growth increasing 10 percent in the U.S. And operating income jumped from $58.3 million in Q3 2009 to $100.2 million for the quarter in 2010.
Revenue for the first nine months totaled $4.52 billion compared to $4.23 billion in 2009. There was a 5.2 percent organic revenue increase year-over-year, and operating income for the first nine months of the year was $218 million compared to $73.3 million in 2009.
“Though macro uncertainty remains, both domestically and internationally, we are confident that we can deliver on our operating margin target of greater than 8% in 2010,” said IPG chairman and CEO Michael Roth in a statement.
Harris Diamond, CEO of IPG’s Constituency Management Group, which includes PR firms such as Weber Shandwick, GolinHarris, DeVries PR, and others, said the group was “seeing strength across all disciplines and firms” with 6.4 percent organic growth year-over-year for the first nine months and 6.7 percent organic growth like-for-like for the quarter.
“Organic growth has been driving a significant part of business all year,” he told us. “That’s something that we can see accelerating slowly but surely, month over month.”
Moreover, with so much media fragmentation, Diamond says clients have a better sense of what PR can do for them.
“We’re taking a bigger share of the marketing wallet,” he added.
In Diamond’s opinion, this is the best time he’s seen for the industry, even while he acknowledges ongoing economic uncertainty. Social media has played a big role in the success of his company and the industry.
“The difference now is our services are more understood, the impact we have is better recognized and the ability to reach is better than its ever been,” he said. “Our programs now directly reach consumers and opinion-makers. We’re content providers and we directly engage in conversations. The technology is playing to our strengths.”