Hasta La Creative!

Interpublic Group of Cos. reported organic growth of 3.6 percent in its first quarter earnings as it suggested clients are returning to “growth mode” and showing a willingness to invest in their brands.

The agency holding company saw a first quarter net revenue increase to $1.77 billion, a 5.9 percent rise over $1.68 billion in the first quarter of 2017. IPG reported an organic net revenue increase of 3.6 percent over the prior-year period. The organic net revenue increase in the U.S. was 4.3 percent and 2.6 percent internationally.

In a research note, Pivotal Research senior analyst Brian Wieser said the group’s earnings were good versus expectations that IPG “undoubtedly outperformed the industry to a significant degree.” He wrote that the ad industry is facing challenges including weakness among large marketers, zero-based budgeting from clients and increased contract security in the wake of transparency concerns around agency-marketer relationships.

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