Interpublic Group (IPG), a New York advertising firm, has reported that its organic revenue increased 5.6% year-on-year in the third quarter according to the company’s earnings statement.
Despite that, IPG stated that clients have reached out to them to ask for help creating contingency plans in case of a greater economic downturn.
The group attributed the increase in organic revenue, which is a key measure of agency health, to its digital, data and commerce-related services.
The acquisition of RafterOne, a Salesforce branch for consumer and B2B eCommerce transformation, has also boosted organic revenue substantially.
Due to the upswing in organic revenue, the firm raised expectations for yearly organic growth to a 6.5% to 7% range, showing the same positive outlook that Publicis Groupe and Omnicom Group are displaying.
Such optimistic reports fly in the face of the possibility of a deeper recession that could impact marketing investiture.
Marketing budget cuts usually follow in the footsteps of more serious economic downturns, which is why IPG clients are looking for direction in preparation for such an event.