Credit: Grant Durr (via Unsplash)
IPG’s business growth forecast for 2024 includes the expectation that technology clients will not be as drag on growth as they were last year.
However, “substantial” losses in the telecommunications sector will be felt through most of this year.
Leading global digital platforms are cutting costs and cutting overhead built as consumers go online in the midst of the pandemic.
IPG posted better-than-expected organic growth of 1.7% in the December quarter and has an upbeat outlook for 2024.
Growth was driven by customers in the healthcare sector, followed by consumer goods and food and beverages.
Media, Data and Engagement Solutions organic growth was 1.1%, driven by continued “very strong” growth in IPG Mediabrands.
The global advertising group expects overall organic net revenue growth in 2024 to be in the 1% to 2% range, despite ending 2023 with full-year organic growth of -0.1%. I am.
However, IPG continues to face economic uncertainty and challenges with technology customers.
CEO Philip Krakowski said “austerity” at technology and telecom companies cost IPG 2.2% of its internal growth in 2023 and Digital Specialists about 1.2%.
“In the fourth quarter, it felt like technology and communications were stabilizing, and that’s still the case,” Krakowski said in an analyst briefing.
“In terms of new business, we had quite a few big wins, some of which we started to see in the second half of last year and even more so in the fourth quarter.
“Unfortunately, we had two big losses after that, with different flavors and different reasons behind them.
“But we’re basically going to have some headwinds this year with both of those losses.
“If you think about new business for the whole year of ’23, that’s going to have a significant impact from our sales. So we think we’re broadly speaking flat.”
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