Interpublic Group reported steady growth in the April–June quarter, a fresh sign that advertisers are still spending despite economic jitters. The company cited stronger demand in media and healthcare, with added momentum from sports marketing and public relations. It also reaffirmed that its planned $13.25 billion merger with Omnicom is on track to close in the second half of the year.
The update follows upbeat results from French ad giant Publicis and Omnicom, suggesting that brands are keeping budgets intact even as costs and rates weigh on outlooks. Interpublic’s chief executive, Philippe Krakowsky, said sector mix and client needs helped drive the quarter.
Earnings Signal Resilient Ad Budgets
Advertising typically cools when growth slows, but recent reports from major holding companies point in a different direction. Interpublic’s performance aligns with peers that also posted healthy top-line trends.
Marketers often shift dollars to channels and services that show near-term results. Media buying tied to measurable outcomes and healthcare campaigns remained sturdy, while event-led sports marketing rebounded with a busy calendar.
“We benefited in the April–June quarter from strong spending from our media and healthcare-focused businesses, as well as growth in our sports marketing and public relations units,” Krakowsky said.
Merger With Omnicom Nears Decision
Interpublic said its $13.25 billion merger agreement with Omnicom, announced last year, remains on the expected timeline. If completed, the deal would create the world’s largest advertising group by revenue, reshaping how global clients source media, creative, and PR services.
Management said it expects closing in the second half of the year, pending customary approvals. Large tie-ups in the sector often draw attention from regulators and clients, who watch for impacts on fees, talent, and choice of agencies.
- Expected closing: second half of the year.
- Deal value: $13.25 billion.
- Stated goal: build scale across media, healthcare, sports, and PR.
Where Growth Is Coming From
Healthcare budgets tend to be less cyclical and continue to support agencies with specialized compliance and patient engagement work. Media services tied to performance metrics have also held up, as brands seek clear returns on spend.
Sports marketing lifted results as leagues and sponsors expanded partnerships and in-person activations. Public relations saw gains from corporate reputation work and product launches, which many companies kept on the calendar despite cost pressures.
“Strong spending from media and healthcare, plus growth in sports marketing and public relations, supported our quarter,” Krakowsky said, repeating the core drivers.
Industry Impact and Open Questions
The sector faces a mixed backdrop. Macroeconomic signals are uneven, but ad budgets have not rolled back in a broad way. Publicis and Omnicom also reported solid earnings, reinforcing the view that brand and performance advertising remain priorities.
Still, there are risks. A larger combined company would need to align technology stacks, talent, and client conflicts. Regulators could require divestitures or behavioral remedies. Clients may reassess agency rosters to maintain competition and fresh ideas.
Analysts say the near-term outlook depends on three factors: sustained consumer demand, pricing discipline in media markets, and the pace of regulatory review for the merger. A slip in any one of these could slow momentum.
What to Watch Next
Investors and clients are tracking closing milestones for the Omnicom deal, including regulatory updates and any planned integration steps. They are also watching whether healthcare and media continue to offset softer categories like discretionary retail.
For now, steady spending in media and healthcare, plus gains in sports and PR, suggest that large brands are sticking with campaigns that deliver clear outcomes. If approvals land on schedule, the new group could reset market share across buying, creative, and corporate communications.
Interpublic’s latest quarter adds to evidence that ad budgets are holding up, even as companies trim in other areas. The next few months will test whether that resilience lasts and whether the merger can clear closing conditions without major changes.
