At the Global Media and Communications Conference yesterday, Interpublic Group CEO Michael Roth cautiously said that the worst effects of the advertising downturn may be over and IPG should be on the upswing in 2010.
Of course, it helps that IPG took “11 percent of…people costs out” and its agencies like Deutsch and Martin Agency won VW and Pizza Hut, respectively. According to NYT’s Media Decoder, Roth said during his speech that if indeed “the worst is behind us,” then big severance payments “should be behind us” meaning significant layoffs could be ending and that “the second half of ’10 will be better than the first” for the third-largest advertising holding company.
ABC News adds that analysts expects IPG to report a 12% drop in revenue, excluding the effect of acquisitions, in the fourth quarter compared to 14% in Q3.