Global holdings group, Interpublic Group has announced plans to defend its General Motors (GM) account, a day after the company’s stock price dropped dramatically after reports that GM would put its media buying account up for review.
A statement released by Interpublic said: “We firmly believe that we can mount a successful defence, as we did on the recent review of the GM European media buying assignment, which took place last year.”
The Group also revealed that revenue from the GM account represents less than 1% of its global revenue.
Interpublic’s announcement follows a report last Friday in industry publication, Advertising Age, that GM, the world’s largest car maker and the biggest US advertiser, was considering moving its media buying business.
Speaking at a conference in the US in December 2004, David Bell, chief executive officer of Interpublic Group was optimistic about the Group’s performance for 2004, saying they were on line for an operating margin of 12%-15% even if organic growth trailed the economy (see Weak Dollar Could Force WPP Profits Down).
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