Interpublic Group of Cos. (IPG) and Omnicom Group, two leading ad holding companies, reported weaker-than-expected Q2 organic revenue figures, negatively affected by diminished spending from tech and telecoms clients.
IPG's organic net revenue fell 1.7% in Q2, below the predicted 1.1% growth. Similarly, Omnicom's Q2 organic revenue growth was 3.4%, less than the estimated 4.2%. These results signal increasing pressure and a downturn in client demand across the advertising industry. Accordingly, both companies have adjusted their 2023 growth forecasts. IPG now expects 1% to 2% growth, down from 2% to 4%, while Omnicom has raised the lower limit of its growth forecast to 3.5%.
In contrast, Publicis Groupe reported Q2 organic growth of 7.1%, surpassing the 4.3% consensus estimate, and now expects about 5% organic growth in 2023. However, Publicis also acknowledged some clients are delaying certain projects amid current uncertainties.