Friday, April 26, 2024

16621: IPG Priming For Pruning…?

 

Mediapsssst at MediaPost reported IPG CEO Philippe Krakowsky stated that two White digital agencies in the network—Huge and R/GAcontinue to pose a “significant drag” on the White holding company’s growth.

 

Hmmm. Sounds like somebody’s ripe for pruning.

 

Digital Agencies Still A Drag On IPG Growth

 

By Richard Whitman, Columnist

 

During a call with analysts yesterday following the release of its first quarter results, IPG CEO Philippe Krakowsky noted that its two digital agencies Huge and R/GA are still posing a significant drag on the company’s growth—about 1.5 percentage points in Q1.

 

That’s after a year or more of strenuous efforts to turn the fortunes of both shops around with new management and revamped go-market approaches.

 

Another big drag on the company’s growth throughout last year was its roster of technology and telecom clients which collectively cut spending drastically at IPG and other holding companies too.

 

The good news there is that now that sector is less of a drag on IPG’s growth—around 1.5% versus the previous 2 to 2.5%. Krakowsky told analysts that it was still hard to tell when the sector would actually start growing again.

 

And the company’s organic growth outlook for the year—between 1% and 2%--does not factor in any growth from the “turnaround” agencies or tech sector growth. So if some growth does materialize in either sector, it would be icing on the cake.

Thursday, April 25, 2024

16620: IPG 1% OK 4 Q1.

 

MediaPost revealed IPG reported 1.3% growth in Q1—which is significantly less than the 9% pay hike that CEO Philippe Krakowsky pocketed in 2023.

 

The White holding company stated its strongest performers and main growth drivers were media operations, PR enterprises, and healthcare marketing. Although it’s not clear if the statement was drafted before IPG got spanked and yanked by Pfizer.

 

Krakowsky might have acknowledged the demotion while discussing the conservative corporate goal of 1%–2% organic revenue growth for the entire year by saying, “…a recent decision by a significant ongoing client will adversely impact the balance of this year and likely make achieving the top end of that target more challenging.”

 

It’s a pretty clear indicator that things are bad when leadership admits hitting a goal—a forecast representing lowering the bar to the lowest level—might be overly optimistic. After all, how would Krakowsky respond if staffers projected raising their performance standards up to 1%?

 

And if the White holding company is satisfied with 1% revenue growth, what does that say about the White advertising agencies that were shat, spun, and sold out of the network?

 

IPG Reports 1.3% Growth In Q1, In Line With Expectations

 

By Steve McClellan

 

Interpublic Group reported net revenue of $2.18 billion for the first quarter, up 0.3% on a reported basis with an organic gain (which excludes currency and M&A impact) of 1.3%, in line with the company’s previously stated outlook.

 

The company said that its media operations, healthcare marketing and PR units continued to perform strongly and were the main growth drivers in the quarter.

 

In the U.S., organic growth was 2.1%. Outside of the U.S., IPG reported a combined organic revenue decline of 0.5%.

 

Company CEO Philippe Krakowsky said that “marketer sentiment has begun to improve relative to the back half of last year” and that the company’s new business pipeline “is more active.”

 

For now IPG is sticking with previously stated guidance that it expects to achieve between 1% and 2% organic revenue growth for the full year. However, Krakowsky qualified the guidance, noting that “a recent decision by a significant ongoing client will adversely impact the balance of this year and likely make achieving the top end of that target more challenging.”

 

The firm still expects to deliver a pre-tax profit margin of 16.6%.

 

M&A this year will focus on broadening IPG’s commerce and digital transformation capabilities, Krakowsky said.

 

Pre-tax income for the quarter was $160.6 million. Adjusted earnings for the quarter excludes after-tax amortization of acquired intangibles of $16.5 million, after-tax restructuring charges of $500,000 and an after-tax loss of 7.9 million on the sales of undisclosed businesses.

Wednesday, April 24, 2024

16619: White Paper, White Noise.

Mediapsssst at MediaPost spotlighted a White paper from a White consultancy that offers internal communications guidance, presumably servicing White companies.

 

Incidentally, the White paper was produced in partnership with The Harris Poll, the iconic White global consultancy and market research firm owned by The Stagwell Group, a White holding company predominately comprised of White advertising agencies.

 

The Mediapsssst story title asked, “Is Your Agency Burned Out By The Pace Of Change?” The image depicted above—excerpted from the White paper—presents five key drivers of burnout:

 

1) Constant change

 

2) High turnover

 

3) Unnecessary work from leadership

 

4) Asked to shift focus throughout the day

 

5) Not being encouraged to take time off

 

These are the typical conditions at White advertising agencies, prompted by the merger-minded and moronic maneuvers of White holding companies.

 

Granted, the White paper was not written exclusively for White advertising agencies. But it’s kinda bizarre that it was co-crafted by an enterprise owned by a White holding company that could’ve easily provided the data by simply polling its White advertising agencies.

 

Is Your Agency Team Burned Out By The Pace Of Change?

 

By Richard Whitman, Columnist

 

Digital transformation and other factors have made change a constant across many industries, especially advertising and marketing. What impact is that change having on your workforce?

 

According to a survey from Stagwell’s Harris Poll and The Grossman Group, 76% of employees and 63% of managers report feeling burned out or ambivalent in their current position.

 

But, the survey found managers aren’t recognizing just how overwhelmed employees feel. 89% of managers believe employees are thriving, but only 24% of employees feel that way.

 

58% of burned-out employees and managers strongly agree they are mentally exhausted while 54% agree they are overwhelmed in their current role.

 

Top drivers of employee burnout: constant change, unnecessary work and turnover.

 

Thriving employees cite a manager invested in their success (61%), empathetic manager (57%) and approachable senior leadership (53%).

 

See more from the report here.

Tuesday, April 23, 2024

16618: Back Again By Performative, Er, Popular Demand…?

 

Campaign published performative PR from the IPG Global Chief Diversity and Social Impact Officer, spotlighting how the White holding company resurrected/resuscitated its internal “Inclusion Awards” program.

 

It all begs the question why IPG—generator of gobbledygook that boasts being recognized for leadership in diversity and inclusion—would have put the heat shield on ice in the first place. Did the White holding company’s vaunted dedication to DEIBA+ diminish? Perhaps the corporation that recently boosted its CEO’s annual salary to over $14 million instituted diversity budget cuts. Maybe the global outhouse just got tired of saluting resident minorities after delegating diversity to them.

 

More likely, IPG is simply a systemically racist pile of bullshit.

 

Why we need to celebrate diversity now more than ever

 

By Channing Martin, global chief diversity and social impact officer, IPG

 

I started this role in 2022 and quickly began peeling back the layers of a dynamic company. I was working with a strong foundation led by my predecessor of almost two decades. IPG had all the “best practice” DE&I standards in place, with surveys, employee resource groups and commitments to diversity from the very top. As I began to peel back the layers and identify our strengths and opportunities to evolve and transform our culture, I noticed I was being asked the same question over and over: “Are you going to bring back the Inclusion Awards?”

 

I can take a hint, so my team and I jumped at the opportunity to recreate a space that honored the dedication, creativity and commitment that our colleagues and clients across IPG have shown in advancing equity especially in a time where many are stepping back from their DE&I commitments.

 

In response to stepping back, we must step up. Now more than ever is the time to quiet the few but very loud anti-DE&I voices — voices that are not representative of our goals or our truth. We must acknowledge the inequities, both micro and macro, that exist in our workplaces, in our business and our communities. An awards celebration is an opportunity to remind ourselves and others of our responsibility in the advertising and marketing industry to create authentic and responsible work and campaigns that directly impact consumer behaviors and culture. We can’t take our foot off the gas, and we need to bring the same strategic acumen and vigorous competitive approach we exhibit every day on behalf of our clients to building equitable structures and creating inclusive spaces.

 

And were we right to bring back the IPG Inclusion Awards, which started in 2009. We received over 170 applications, which is a testament to the passion and dedication of people across the IPG network to advancing diversity and inclusion. With more than 150 judges meticulously reviewing these applications, we saw firsthand the collective effort and collaboration happening across our networks and agencies.

 

The Inclusion Awards is about honoring the best work from IPG that has made a difference over the past year in changing culture to make it more inclusive and supporting our communities around the globe. We could not have done this without incredible partners.

 

LinkedIn, a co-sponsor of the event, hosted us at their NY headquarters in the iconic Empire State Building. And every aspect of the event was curated with purpose to amplify diverse voices and support economic empowerment of diverse-owned businesses. From the swag provided by Black-owned and woman-owned vendors to the fragrances by Brown Girl Jane, every detail was intentional and purposeful. We also contracted Dirty Sugar Photography, an LGBTQ+- and Black-owned photography company, to document the evening’s festivities. The presence of a DJ who identifies as LGBTQ+, alongside an LGBTQ+-owned production team, further underscored our commitment to amplifying diverse voices and perspectives.

 

The IPG Inclusion Awards serve as a powerful reminder that when we come together as a community, we are stronger and there are no limits to what we can achieve. Our work is not just about moving the needle forward; it’s about sparking meaningful change in the areas that matter most to us all. In a world where boundaries exist, IPG remains relentlessly committed to continuing our journey forward. Where others see boundaries, we see opportunity — the opportunity to rise up and stand strong together.

 

The theme for this year's event was “Boundless: Powered by Our People,” encapsulating the essence of our collective mission. The event started with blue carpet interviews by the talented Tai Beauchamp of Tai Life Media, and at the awards ceremony, we embarked on a journey of mindfulness, setting the tone for an evening filled with reflection and celebration of the work by our 2024 honorees:

 

• Community Impact: R/GA for We Are Warriors’ Blak Powerhouse

 

• Outstanding Business Results through Inclusion: McCann XBC and Mastercard for Drive Impact by Inclusion

 

• Most Effective Targeted Campaign: McCann New York for Microsoft’s ADLaM

 

• Inclusive Talent Life Cycle Initiatives: IPG Mediabrands for the Career Advancement Program

 

• BELONG Survey Results Award (highest score): Jack Morton

 

• Inclusion Campaign of the Year (APAC): FCB Group India for Untangling the Politics of Hair

 

• Inclusion Campaign of the Year (EMEA): FCB London for Dyslexic Thinking

 

• Inclusion Campaign of the Year (LATAM): Weber Shandwick WW for UNESCO’s The Last Survivors

 

• Inclusion Campaign of the Year (NORTHAM): FCB Toronto for Runner 321

 

• Business/Employee Resource Group Excellence Award: Women LEAD BRG of Acxiom

 

• Agency Inclusion Vanguard Award (team): DE&I Team of FCB Chicago

 

• Agency Inclusion Vanguard Award (individual): Sampson Yimmer, SVP, sponsorship consulting and director of diversity at Momentum Worldwide

 

Throughout the evening, we had the privilege of hearing from visionary leaders who are driving equity and accessibility in advertising and beyond. Storm Smith, a trailblazer in the DE&I space, served as our master of ceremonies for the evening. Her powerful campaigns, including It’s Time to Redefine, have not only garnered global recognition but have also served as catalysts for meaningful change.

 

In a fireside chat, Bayyina Black, global director of sustainability and impact at R/GA, and I unveiled RISE, IPG’s new strategic framework for our DE&I and social impact efforts. The pillars of RISE include: Remove barriers limiting equity and inclusion, Invest in the potential of our global talent, Spark industry innovation and growth and Empower and elevate local and global communities for social impact. Created by the talented team at R/GA, the RISE branding and framework reflects our collective commitment to building a more equitable and inclusive culture for all.

 

The impact of our work is BOUNDLESS. It not only moves our business forward, but it also serves as a catalyst for social change in the areas that are most important to us all. As we reflect on the success of this year's event, let us carry forward the spirit of inclusivity and continue to champion diversity in every aspect of our lives.

 

Together, we rise. Boundless and unstoppable.

 

Channing Martin is IPG’s global chief diversity and social impact officer, leading the company’s diversity, equity and inclusion efforts. With a focus on diversifying senior leadership and talent pipelines, she collaborates with agency brands and oversees social impact strategies. Previously, Martin held similar roles at CSG, the Federal Reserve Bank of Chicago, and the U.S. Department of State, where she developed measurable diversity initiatives and built diverse talent pipelines. She holds a B.A. in economics from the University of Pittsburgh and an M.S. in public policy and management from Carnegie-Mellon University’s Heinz College.

Monday, April 22, 2024

16617: Adland Schedules Support For Earth Day 2024.

 

The Earth Day 2024 Global Theme—brought to you by EarthDay.org—is Planet vs. Plastics. In defense of humanity and planetary health, the environmental advocacy group presents 60X40, calling for a 60% cutback in all plastic production by 2040.

 

It’s a safe bet that Adland will be all in—and go all out—to make it happen. Hell, the campaigns have already been done to death—as in the plastic-perpetrated death of dolphins, whales, seals, pelicans, seagulls, and turtles. The latest theme will undoubtedly inspire more scammy concepts.

 

Adland is always eager to support performative, propagandistic causes, and even set firm timetables for completion. Yet for diversity deadlines—like No.2.66—it’s okay to dawdle, delay, and drag one’s feet.

 

All of which helps Adland maintain its status as one of the most exclusively racist industries on earth.

Sunday, April 21, 2024

16616: Supplementing The Ritualistic Awfulness Of Big Pharma.

 

Ritual is in the nutraceutical industry, which is regulated by the FDA differently than the pharmaceutical industry. Nonetheless, the dietary supplements brand creates advertising that’s just as awful as Big Pharma campaigns.

 

Saturday, April 20, 2024

16615: Excrement For The Environment.

 

The “Smear Campaign” from AMV BBDO is, well, shit.