Global advertising agency, Interpublic Group (IPG), has indicated that its revenue will be down in the high, single-digit percentages for the second quarter of the year, indicating that the slow recovery may not yet be wide-reaching.
IPG had previously forecast that its revenues will be flat year on year for the full year 2002. However, given the high single-digit decline of Q2 and a 15.2% drop in Q1, this looks like an increasingly ambitious target, says a report on AdAge.com. The company did not offer guidance on the full year at the Mid-Year Media Review conference for investors.
It would require a lot of conviction from advertisers in the third and fourth quarters to boost spending to the levels required for IPG to hit its target of flat growth. The company’s chief financial officer, Sean Orr, said that client spending trends are ‘still too tough to call’, according to AdAge.com.
