IPG: Octagon Sees Q3 Growth, 'Modernizing the Event Business'
Global advertising firm Interpublic Group (IPG) reported disappointing Q3 results earned $17.2 million, in the period, down from $38.7 million, on revenue of $1.43 billion, an 18% drop.
Results aside, Interpublic CEO Michael Roth seemed bullish on event marketing, and in response to one analyst's question on measurement of which, Roth specifically talks about how they're modernizing the business. Here's what Roth had to say on the call...
A/Michael RothNo. Not at all I think, frankly one is a reality aspect of it. It’s the easiest thing to turn off. So when people were cutting back, it was easy to cut the events and certainly the environment didn’t help where everyone was looking at events as somewhat of a negative thing to do. I think we're starting to see that turn. I think there is no question that there is a place in any marketing service program for events. It has a real impact. I think we can show that it moves the needle and clients certainly embrace it in terms of the opportunity.
For example in the automotive business, there is nothing more important than getting someone in the car and experiencing it. So I think that part of the business will continue and it continues to serve a very important part. And frankly the tone is improving in that business and we are starting to have more dialogue. It may be just the timing issue between 2009 and 2010, but I believe that business and we have among the best in class between Jack Morton and Momentum.
I think we have great resources and the fact that we're modernizing the event business. It use to be that when you look at the event business, all we were doing was one particular event and it was the mechanical aspect of the event that was driving the business. In today’s world we combine digital offerings with the event offering and we make it an integrated offering with PR Digital, the event business and all the different marketing services. So we're not just talking about, it's not your old event business right now, it’s a much more modern approach to it and I think these are real place for us in the marketplace.
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