Revenues were down at both WPP and IPG as both holding companies noted tariff concerns in their first-quarter earnings calls this week.
WPP, which operates Ogilvy, VML, Wavemaker and Burson, reported £3.2 billion ($5.9 billion) in first-quarter earnings – a 5% year-over-year decline that equates to a 0.7% drop in like-for-like terms.
A 0.1% revenue decline in WPP’s North American operations, attributed to a slump in project-based work, was partly offset by increases in auto, financial services and technology spending. GroupM moved higher, offset by Ogilvy declines in the region.
“While WPP is not itself directly affected by tariffs, they will impact a number of our clients as well as the broader economy,” Mark Read, the company’s CEO said in a statement.
In Friday’s earnings call, Read said WPP has yet to see significant client pullback amid the economic uncertainty.
Net new business was down slightly, according to WPP.
Read said VML and Burson saw renewed momentum in new business after a first quarter that brought in important wins including Generali Group, Heineken and Levi Strauss & Co.
He added that the acquisition of InfoSum and its integration into GroupM’s data offer accelerated its AI-driven data approach.
Media giant Interpublic Group (IPG) topped analyst estimates despite reporting an 8.5% year-over-year decline with US$2 billion in first-quarter net-revenue.
The parent company of McCann, FCB, Weber Shandwick, IPG Mediabrands and Golin, reported Thursday that its international markets group, which includes the Canadian, Middle East and African regions, grew 2.9% organically thanks to “strong growth in Canada.”
The company reported strength in media buttressed by Golin, IPG-level production and data-analytics arm Axciom.
IPG also reported “meaningful progress on the proposed acquisition by Omnicom,” a stock-for-stock transaction that would create the world’s largest ad agency.
CEO Philippe Krakowsky said client activity did not change substantially in the quarter.
He said IPG is continuing to invest in technology and moving toward greater functional optimization.
