Business Analysis of Interpublic Group Of Companies

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Interpublic Group Of Companies

INTERPUBLIC GROUP OF COMPANIES

Business Overview

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines. The company also provides various diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. It offers its services under various brands comprising McCann, MullenLowe, IPG Mediabrands, Carmichael Lynch, Deutsch, Hill Holliday, and The Martin Agency, as well as Foote, Cone & Belding. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

Interpublic Group Of Companies

Interpublic Group Of Companies


R&P Rank: 350
Sector: Media & Entertainment
Industry:Media Agency Services
H.Q Location:New York
Website: www.interpublic.com
Company Address:
909 THIRD AVENUE, NEW YORK NY 10022
Ph:212-704-1200

Business Analysis of Interpublic Group Of Companies

The Media & Entertainment Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Interpublic Group Of Companies compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Interpublic Group Of Companies to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Interpublic Group Of Companies with an interactive chart.

  1. Revenue Growth: Interpublic Group Of Companies reported a revenue growth of 3.1% year-on-year during 2016. Media Agency Services Industry grew at 3.6% in the same period
  2. COGS share of Revenues: Interpublic Group Of Companies COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Interpublic Group Of Companies R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Interpublic Group Of Companies spent 88.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Media Agency Services industry average SG&A spending in the same period was 55.9%
  5. Inventory share of Revenues: Interpublic Group Of Companies Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Interpublic Group Of Companies invested 80.3% of its total revenues on Accounts Payable (A/P) Media Agency Services industry average Accounts Payable investment in the same period was 46.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Interpublic Group Of Companies invested 75.3% of its total revenues on Accounts Receivable (A/R). Media Agency Services industry average Accounts Receivable investment in the same period was 43.0%
  8. PP&E share of Revenues: As a percentage of revenue, Interpublic Group Of Companies invested 7.9% of its total revenues on Property, Plants, and Equipments (PP&E). Media Agency Services industry average PPE investment in the same period was 13.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Interpublic Group Of Companies invested 46.8% of its total revenues on Intangibles. Media Agency Services industry average Intangibles investment in the same period was 67.1%
  10. Net Margins: Interpublic Group Of Companies Net Margins in the year 2016 were 7.8%. Media Agency Services industry average Net Margins in the same period were 6.9%

Sector and Industry Association of Interpublic Group Of Companies

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Interpublic Group Of Companies is associated with Media & Entertainment Sector and Media Agency Services Industry.

Media & Entertainment sector is comprised of the following industries: Broadcasting, Cable, and Filmed Entertainment; Media Agency Services; Publishing. The definitions for each of the industries is as follows:

  • Broadcasting, Cable, and Filmed Entertainment industry includes companies that provide radio and television programming. It also includes companies that provide music and filmed entertainment.
  • Media Agency Services industry includes companies that provide advertising, public relations and marketing services. It also includes billboard providers and telemarketers.
  • Publishing industry includes newspapers, magazine, and book publishers.

Industry Ranking of Interpublic Group Of Companies

With $7.8 billion revenues, Interpublic Group Of Companies ranked number 2 of all the companies in the US Media Agency Services industry. There were a total of 13 public companies in the US Media Agency Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Media Agency Services industry by revenues during 2016 were:

  1. Omnicom Group ($15.4 billion)
  2. Interpublic Group Of Companies ($7.8 billion)
  3. Alliance Data Systems ($7.1 billion)
  4. Clear Channel Outdoor Holdings ($2.7 billion)
  5. Outfront Media ($1.5 billion)
  6. Lamar Advertising ($1.5 billion)
  7. MDC Partners ($1.4 billion)
  8. Innerworkings ($1.1 billion)
  9. National Cinemedia ($447.6 million)
  10. QuinStreet ($297.7 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Interpublic Group Of Companiesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of interpublic-group-of-companies

Omnicom Group (OMC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Omnicom Group Inc. with $15 billion revenues in the year 2016 was the number 1 Media Agency Services company. Read this report to know the top competitors of Omnicom Group and identify growth and cost optimization opportunities of Omnicom Group

Alliance Data Systems (ADS) Business Analysis – Analyze Historical Performance, Strategic...

Alliance Data Systems Corp with $7 billion revenues in the year 2016 was the number 3 Media Agency Services company. Read this report to know the top competitors of Alliance Data Systems and identify growth and cost optimization opportunities of Alliance Data Systems

Clear Channel Outdoor Holdings (CCO) Business Analysis – Analyze Historical Performance,...

Clear Channel Outdoor Holdings, Inc. with $3 billion revenues in the year 2016 was the number 4 Media Agency Services company. Read this report to know the top competitors of Clear Channel Outdoor Holdings and identify growth and cost optimization opportunities of Clear Channel Outdoor Holdings

Outfront Media (OUT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Outfront Media Inc. with $2 billion revenues in the year 2016 was the number 5 Media Agency Services company. Read this report to know the top competitors of Outfront Media and identify growth and cost optimization opportunities of Outfront Media

Lamar Advertising (LAMR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lamar Advertising Co with $2 billion revenues in the year 2016 was the number 6 Media Agency Services company. Read this report to know the top competitors of Lamar Advertising and identify growth and cost optimization opportunities of Lamar Advertising

MDC Partners (MDCA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

MDC Partners Inc with $1 billion revenues in the year 2016 was the number 7 Media Agency Services company. Read this report to know the top competitors of MDC Partners and identify growth and cost optimization opportunities of MDC Partners

Revenues Analysis

Interpublic Group Of Companies (IPG) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Interpublic Group Of Companies, Inc. (IPG) from 2012 to 2016. Interpublic Group Of Companies generated a total of $7.8 billion revenues during 2016. Interpublic Group Of Companies reported a revenue growth of 3.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Interpublic Group Of Companies (IPG) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Interpublic Group Of Companies, Inc. (IPG) from 2002 to 2016. Interpublic Group Of Companies generated a total of $7.8 billion revenues during 2016. Interpublic Group Of Companies reported a revenue growth of 3.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Interpublic Group Of Companies (IPG) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Interpublic Group Of Companies, Inc. (IPG) revenue growth with Media Agency Services industry growth during the last five years from 2012 to 2016. Interpublic Group Of Companies reported a revenue growth of 3.1% year-over-year during 2016. The Media Agency Services industry growth was 3.6% year-over-year during 2016. Interpublic Group Of Companies growth was slower than the industry during 2016.

Profit Analysis